IAAO 102: Income Approach Questions with
Correct Answers
Income equals
Rate times Value
Anticipation
The basis for the Income Approach
Rate equals
Income divided by Value
Value equals
Income divided by Rate
Income approach
One of the three approaches to value in which the appraiser derives a value indication by
converting anticipated benefits through ownership of income-producing property.
Anticipation
The economic principle that states that value is created by the expectation of benefits to be
derived in the future.
Substitution
The economic principle that states that a property's maximum value tends to be set you the
lowest cost or price at which another property of equivalent utility can be acquired.
Contribution
Correct Answers
Income equals
Rate times Value
Anticipation
The basis for the Income Approach
Rate equals
Income divided by Value
Value equals
Income divided by Rate
Income approach
One of the three approaches to value in which the appraiser derives a value indication by
converting anticipated benefits through ownership of income-producing property.
Anticipation
The economic principle that states that value is created by the expectation of benefits to be
derived in the future.
Substitution
The economic principle that states that a property's maximum value tends to be set you the
lowest cost or price at which another property of equivalent utility can be acquired.
Contribution
