The subject is the leasehold interest in a property that was leased for 99 years and is in the thirty-fifth year of the lease. The lease rate was based on the vacant land value, and the eight-story building was built by the lessee 35 years ago. In this case,

a.

The cost approach is the only way to value the leasehold interest

b.

The cost approach should be applied as though the interest is fee simple including the land value but with an adjustment for the interest appraised made at the end

c.

The cost approach cannot be used for this appraisal

d.

The depreciated cost of the building is the value of the leasehold interest