#6 AND #7 help pls.

You have been contracted to appraise a 20-year old, ranch style brick bungalow in a single-family residen tial neighbourhood. You will use the cost approach based on replacement cost. Note that land value has already been determined, so you only need to calculate the value of the building. Location The subject property is immediately adjacent to an elementary school with playground noise levels and heavy vehicular traffic, not aspects typically desired by the general buying public Site and Service The subject site is well-landscaped with several mature trees and plantings, All services associated with residential style accommodations are available, ie, water, sewers, gas, hydro, etc. Building Details This bungalow has been well-maintained over recent years, with the exception of the following items that require immediate attention: Interior painting is required in two bedrooms, the bathroom, and the hallway. The RCN of the painting is $1,200, the cost to paint is $1,500 You also notice that a basement window is cracked and would normally be replaced by a typical purchaser. The cracked window would cost $430 to install now; the RCN would be $350. After comparing the subject improvements to houses in the immediate area, you conclude that its condition is typical for houses of this age. Therefore, the actual age of 20 years is concluded to be repre- sentative of its effective age. Your investigation of competing structures leads you to the conclusion that the remaining economic life estimate is 50 years. You prepare a list of those items that, in your opinion, will require replacement prior to the estimated 50 year remaining economic life. These items are noted as follows: (a) The remaining interior painting and exterior painting will be required again in approximately 3 years. The RCN of this work is calculated at $3,000. Typically, painting is required every 6 years. (b) The furnace is expected to last another 5 years and the RCN of the furnace is $3,200. This is the original furnace and is in relatively good condition. (c) The roof shingles, which are now 12 years old, will require replacement in 3 years. The RCN of the shingles is $10,000 (d) The hot water tank is now 3 years old and will require replacement in 7 years. This item would cost $2,450 installed if purchased at the date of this appraisal. The bathroom fixtures are now out-of-date in terms of today's standards. Similar homes in the neighbour hood have been upgraded in recent times and the subject appears to have been neglected regarding these items. The RCN or cost to cure of the fixtures is reported to be $1,500, the depreciated cost or old value of these fixtures is indicated at $100, e.g., could be sold for that amount at a garage sale. As previously noted, the extra traffic and noise problems associated with the adjoining school would negatively impact on the potential rental income that this property could command on the open market. You estimate a rental loss of $75 per month as a result of these factors, assuming the subject property was available for rent as at the effective date of this appraisal. Additional notes: (1) Your analysis of land-to-building ratios in this area indicates that typically land represents 40% of the property value. (2) For the purpose of developing a gross rent multiplier, you have researched the market and located the following three transactions Sale Sale Price Monthly Rent 1 $480,000 $2.700 2 $485,450 $2.730 3 $472,250 $2.650 (3) The subject improvements measure 10m x 12m and include three bedrooms, one original bathroom, and a modernized kitchen. The downstairs (basement) area includes a finished recreation room that is typical of houses located in the neighbourhood. (6) The depreciated value of outside improvements, i.e., lawn, shrubs, sidewalks, etc., has been estimated at $8,200. (5) Use a replacement cost new of $1,100 per square metre. In the following questions, you need to calculate the total depreciation under each category. 6. What is the total curable deferred maintenance under physical deterioration? (1) $1,550 (2) $1,500 (3) $1,930 (4) $1,200 7. What is the total depreciation for the incurable short-lived items under physical deterioration? (1) $16,250 (2) $12,795 (3) $18,650 (4) $12,060