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CPPA, Module 4 Exam
2025\2026 Brand New Actual
Exam With Correct Answers.
How is assessed value determined? - ANS>>-Assessors base value for tax
purposes on fair market value multiplied by a factor.
For an example: Assessed value multiplied by appropriate local tax rate it
produces the amount of tax payable
What data does historical cost include? - ANS>>-The amount paid to acquire
an asset and make it ready for use. When information is not available, it may
be necessary to estimate.
What is reverse indexing when determining historical cost? - ANS>>It is an
approach to estimating historic value by comparing current value of similar
properties with comparable age.
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What is market value? - ANS>>-It is the value that a willing buyer might pay a
willing seller
What is the best source for determining the market value of similar items? -
ANS>>-Previous sales records
What is the replacement value? - ANS>>-It is the cost of replacing an asset
with an equivalent asset which can provide similar service at current market
price
What is salvage/residual value and what is it based on? - ANS>>-It is the
estimated value of an asset at the end of its useful life and it is based on its
value in excess of its basic material content
What is scrap value? - ANS>>-The amount realized when an asset is sold for
its basic material content at the end of of its useful life.
What are two types of appraisals? - ANS>>-- Mass
- Machinery and Equipment
What is Mass appraisal? - ANS>>-It is the process of valuing a universe of
properties as a given date using standard methods, employing common data,
and allowing for statistical testing
When developing a mass appraisal, what must the appraiser observe? -
CORRECTANSWER-1. The cost of new improvements
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2. Accrued depreciation
3. The value of land by sales of comparable property
4. The value of property by sales of comparable property
5. The value of capitalization of income i.e. rentals, expenses, interest
rates, capitalization rates, and vacancy rates
What are three approaches to the appraisal of machinery and equipment? -
ANS>>-1. Sales Approach
2. Cost Approach
3. Income Approach
When is the Sales Approach most effective? - ANS>>-When there is an active
market providing sufficient numbers of comparable properties for sale
What seven premises of value should be considered when determining Sales
Approach method? - ANS>>-1. Fair Market Value
2. Fair Market Value in Continued Use
3. Fair Market Value - Installed
4. Fair Market Value - Removed
5. Orderly Liquidation Value
CPPA, Module 4 Exam
2025\2026 Brand New Actual
Exam With Correct Answers.
How is assessed value determined? - ANS>>-Assessors base value for tax
purposes on fair market value multiplied by a factor.
For an example: Assessed value multiplied by appropriate local tax rate it
produces the amount of tax payable
What data does historical cost include? - ANS>>-The amount paid to acquire
an asset and make it ready for use. When information is not available, it may
be necessary to estimate.
What is reverse indexing when determining historical cost? - ANS>>It is an
approach to estimating historic value by comparing current value of similar
properties with comparable age.
,2|Page
What is market value? - ANS>>-It is the value that a willing buyer might pay a
willing seller
What is the best source for determining the market value of similar items? -
ANS>>-Previous sales records
What is the replacement value? - ANS>>-It is the cost of replacing an asset
with an equivalent asset which can provide similar service at current market
price
What is salvage/residual value and what is it based on? - ANS>>-It is the
estimated value of an asset at the end of its useful life and it is based on its
value in excess of its basic material content
What is scrap value? - ANS>>-The amount realized when an asset is sold for
its basic material content at the end of of its useful life.
What are two types of appraisals? - ANS>>-- Mass
- Machinery and Equipment
What is Mass appraisal? - ANS>>-It is the process of valuing a universe of
properties as a given date using standard methods, employing common data,
and allowing for statistical testing
When developing a mass appraisal, what must the appraiser observe? -
CORRECTANSWER-1. The cost of new improvements
, 3|Page
2. Accrued depreciation
3. The value of land by sales of comparable property
4. The value of property by sales of comparable property
5. The value of capitalization of income i.e. rentals, expenses, interest
rates, capitalization rates, and vacancy rates
What are three approaches to the appraisal of machinery and equipment? -
ANS>>-1. Sales Approach
2. Cost Approach
3. Income Approach
When is the Sales Approach most effective? - ANS>>-When there is an active
market providing sufficient numbers of comparable properties for sale
What seven premises of value should be considered when determining Sales
Approach method? - ANS>>-1. Fair Market Value
2. Fair Market Value in Continued Use
3. Fair Market Value - Installed
4. Fair Market Value - Removed
5. Orderly Liquidation Value
