CG EXAM PREP QUESTIONS AND
ANSWERS WTH COMPLETE
SOLUTIONS 100% CORRECT RATED A+
NEWLY UPDATED 2025
The sale price constant is $250,000. The variable is $35 per square foot. The
subject improvement is 3,545 SF. NOI is $25,000. What is the value of the
subject?
Answer: Simple Linear Regression
Using the equation:
y = a + bx
Where:
o a = $250,000 (constant)
o b = $35 (variable cost per square foot)
o x = 3,545 (square feet)
o y = Value of the subject property
Calculation:
y=250,000+(35×3,545)y = 250,000 + (35 \times 3,545)y=250,000+(35×3,545)
y=250,000+124,075y = 250,000 + 124,075y=250,000+124,075
y = $374,075
So, the value of the subject property is $374,075.
A 15-year-old office property recently sold for $1,400,000. The cost to replace
the building is $1,625,000. Land in that office complex sells for $30,000 per
acre and this sale had 10 acres. While the paving and landscaping cost
$80,000, they contributed $50,000 to the sale. What is the annual depreciation
rate of the building?
Answer:
1. Land Value:
30,000 (per acre)×10 (acres)=300,00030,000 \, \text{(per acre)} \times
10 \, \text{(acres)} = 300,00030,000(per acre)×10(acres)=300,000
, 2. Building Value after Land Deduction:
1,400,000 (sale price)−300,000 (land price)=1,100,0001,400,000 \,
\text{(sale price)} - 300,000 \, \text{(land price)} =
1,100,0001,400,000(sale price)−300,000(land price)=1,100,000
3. Deduct Landscaping Contribution:
1,100,000−50,000 (contributory value of paving/landscaping)=1,050,0
001,100,000 - 50,000 \, \text{(contributory value of
paving/landscaping)} =
1,050,0001,100,000−50,000(contributory value of paving/landscaping
)=1,050,000
4. Depreciable Value of the Building:
1,625,000 (replacement cost)−1,050,000 (adjusted sale price)=575,000
1,625,000 \, \text{(replacement cost)} - 1,050,000 \, \text{(adjusted
sale price)} =
575,0001,625,000(replacement cost)−1,050,000(adjusted sale price)=
575,000
5. Depreciation as a Percentage of Replacement Cost:
575,0001,625,000=0.353846\frac{575,000}{1,625,000} =
0.3538461,625,000575,000=0.353846
6. Annual Depreciation Rate:
0.35384615 (building age)=0.02358≈2.3%\frac{0.353846}{15 \,
\text{(building age)}} = 0.02358 \approx
2.3\%15(building age)0.353846=0.02358≈2.3%
So, the annual depreciation rate is 2.3%.
The process of enforcing the right of government to take private property for
public use is:
a. Eminent Domain
b. Condemnation
c. Police Power
d. Escheat
Answer: ✔✔ B. Condemnation
,Eminent Domain is the RIGHT to take property for the good of the public.
Condemnation describes the PROCESS of the taking.
Escheat TRANSFERS title to a government entity when there is no owner
identified upon death of the original property owner.
The blueprints of a building indicate the measurement of one wall to be 43'9" and
the intersecting wall to be 29'3". What is the indicated square foot of the building?
A. 1286
B. 1280
C. 1247
D. 1320 -ANSWER✔✔Correct Answer: B
*Inches must be converted to tenths of a foot for this calculation. Take the inch
figure and divide by 12*
The assignment is to value an approved subdivision. The project is expected to be
sold out in three years, selling eight lots in the first year, four lots in the second
year, and three lots in the third year. The lots will sell for $88,500 each the first
year, $91,200 the second year, and $93,900 in the third year. From the sale
proceeds, a 6% commission will be paid. The project will pay $10,000 in taxes in
the first year, $4,000 in the second year, $2,000 in the third year. All other
infrastructure costs are complete. Developers require a 25% return on investment.
What is the value of the subdivision today, rounded to the nearest $100?
a. $664,300
b. $875,900
c. $1,258,400
, d. $1,355,100 -ANSWER✔✔Correct Answer: B
Year 1:
88,500 (Price Per Lot) x 8 (# of lots) = 708,000
708,000 x .06 (Commission %) = 42,480
708,000 - 42,480 - 10,000 (Taxes) = 655,520 (CF1)
Year 2:
91,200 (Price Per Lot) x 4 (# of lots) = 364,800
364,800 x .06 (Commission %) = 21,888
364,800 - 21,888 - 4,000 (Taxes) = 338,912 (CF 2)
Year 3:
93,900 (Price Per Lot) x 3 (# of lots) = 281,700
281,700 x .06 (Commission %) = 16.902
281,700 - 16,902 - 2,000 (Taxes) = 262,798 (CF 3)
25i
655,520 g cfj
338,912 g cfj
262,798 g cfj
f npv = 875,872
*Calculator work: CF Function
THE SUBJECT IS 60,000 SQUARE FEET. COMPARABLE 1 SOLD ONE
YEAR AGO FOR $2.92 PER SQUARE FOOT. COMPARABLE 2 SOLD ONE
ANSWERS WTH COMPLETE
SOLUTIONS 100% CORRECT RATED A+
NEWLY UPDATED 2025
The sale price constant is $250,000. The variable is $35 per square foot. The
subject improvement is 3,545 SF. NOI is $25,000. What is the value of the
subject?
Answer: Simple Linear Regression
Using the equation:
y = a + bx
Where:
o a = $250,000 (constant)
o b = $35 (variable cost per square foot)
o x = 3,545 (square feet)
o y = Value of the subject property
Calculation:
y=250,000+(35×3,545)y = 250,000 + (35 \times 3,545)y=250,000+(35×3,545)
y=250,000+124,075y = 250,000 + 124,075y=250,000+124,075
y = $374,075
So, the value of the subject property is $374,075.
A 15-year-old office property recently sold for $1,400,000. The cost to replace
the building is $1,625,000. Land in that office complex sells for $30,000 per
acre and this sale had 10 acres. While the paving and landscaping cost
$80,000, they contributed $50,000 to the sale. What is the annual depreciation
rate of the building?
Answer:
1. Land Value:
30,000 (per acre)×10 (acres)=300,00030,000 \, \text{(per acre)} \times
10 \, \text{(acres)} = 300,00030,000(per acre)×10(acres)=300,000
, 2. Building Value after Land Deduction:
1,400,000 (sale price)−300,000 (land price)=1,100,0001,400,000 \,
\text{(sale price)} - 300,000 \, \text{(land price)} =
1,100,0001,400,000(sale price)−300,000(land price)=1,100,000
3. Deduct Landscaping Contribution:
1,100,000−50,000 (contributory value of paving/landscaping)=1,050,0
001,100,000 - 50,000 \, \text{(contributory value of
paving/landscaping)} =
1,050,0001,100,000−50,000(contributory value of paving/landscaping
)=1,050,000
4. Depreciable Value of the Building:
1,625,000 (replacement cost)−1,050,000 (adjusted sale price)=575,000
1,625,000 \, \text{(replacement cost)} - 1,050,000 \, \text{(adjusted
sale price)} =
575,0001,625,000(replacement cost)−1,050,000(adjusted sale price)=
575,000
5. Depreciation as a Percentage of Replacement Cost:
575,0001,625,000=0.353846\frac{575,000}{1,625,000} =
0.3538461,625,000575,000=0.353846
6. Annual Depreciation Rate:
0.35384615 (building age)=0.02358≈2.3%\frac{0.353846}{15 \,
\text{(building age)}} = 0.02358 \approx
2.3\%15(building age)0.353846=0.02358≈2.3%
So, the annual depreciation rate is 2.3%.
The process of enforcing the right of government to take private property for
public use is:
a. Eminent Domain
b. Condemnation
c. Police Power
d. Escheat
Answer: ✔✔ B. Condemnation
,Eminent Domain is the RIGHT to take property for the good of the public.
Condemnation describes the PROCESS of the taking.
Escheat TRANSFERS title to a government entity when there is no owner
identified upon death of the original property owner.
The blueprints of a building indicate the measurement of one wall to be 43'9" and
the intersecting wall to be 29'3". What is the indicated square foot of the building?
A. 1286
B. 1280
C. 1247
D. 1320 -ANSWER✔✔Correct Answer: B
*Inches must be converted to tenths of a foot for this calculation. Take the inch
figure and divide by 12*
The assignment is to value an approved subdivision. The project is expected to be
sold out in three years, selling eight lots in the first year, four lots in the second
year, and three lots in the third year. The lots will sell for $88,500 each the first
year, $91,200 the second year, and $93,900 in the third year. From the sale
proceeds, a 6% commission will be paid. The project will pay $10,000 in taxes in
the first year, $4,000 in the second year, $2,000 in the third year. All other
infrastructure costs are complete. Developers require a 25% return on investment.
What is the value of the subdivision today, rounded to the nearest $100?
a. $664,300
b. $875,900
c. $1,258,400
, d. $1,355,100 -ANSWER✔✔Correct Answer: B
Year 1:
88,500 (Price Per Lot) x 8 (# of lots) = 708,000
708,000 x .06 (Commission %) = 42,480
708,000 - 42,480 - 10,000 (Taxes) = 655,520 (CF1)
Year 2:
91,200 (Price Per Lot) x 4 (# of lots) = 364,800
364,800 x .06 (Commission %) = 21,888
364,800 - 21,888 - 4,000 (Taxes) = 338,912 (CF 2)
Year 3:
93,900 (Price Per Lot) x 3 (# of lots) = 281,700
281,700 x .06 (Commission %) = 16.902
281,700 - 16,902 - 2,000 (Taxes) = 262,798 (CF 3)
25i
655,520 g cfj
338,912 g cfj
262,798 g cfj
f npv = 875,872
*Calculator work: CF Function
THE SUBJECT IS 60,000 SQUARE FEET. COMPARABLE 1 SOLD ONE
YEAR AGO FOR $2.92 PER SQUARE FOOT. COMPARABLE 2 SOLD ONE
