$4(60$ points$).$ Applegate Financial is attempting to determine the current market value of a residential property assuming fee simple ownership. Table $1$ presents information on the subject property and several recent $($fee simple$)$ transactions.

Make the following assumptions: larger homes increase price by $$150$ per square foot and house prices have increased by $0\mathrm{.}9\%$ per month $($compounded$)$ over the past year. Baldwin is the least desirable and Montgomery is the most desirable school district. Being in Fisher increases price by $$32,000$ relative to being in Baldwin, and being in Montgomery increases price by $$38,000$ relative to being in Baldwin. Also, if the subject property is sold today, personal property such as furniture and appliances worth $$16,000$ would be included and post$-$deal expenditures of $$41,000$ would be required by the purchaser $($where post$-$deal expenditures refer to expenditures made immediately after purchase$).$

The replacement cost for the house is $$178$ per square foot and the property's land is valued at $$423,000.$ Physical depreciation is estimated to be $6\mathrm{.}0$ percent of total replacement cost, functional obsolescence is estimated to be $5\mathrm{.}0$ percent of total replacement cost, and external obsolescence is estimated to be $$20,000.$

The subject property is in a community with a homestead exemption of $$75,000.$

Table $1$

$\backslash$table$[[$Property$,$Price,$\backslash$table$[[$Transaction$],[$date$]],$Size,Condition of sale,$\backslash$table$[[$Financing$],[$terms$]],\backslash$table$[[$Post$-$sale$],[$expenditures$]],\backslash$table$[[$Personal$],[$property$],[$included$]],\backslash$table$[[$School$],[$district$]]],[$Subject$,,,2,800sqft,,,,$Fisher,$],[$A$,$$$850,000,$Today,$2,800sqft,$Arm's length,At market,$$41,000,$$$35,000,$Fisher$],[$B$,$$$820,000,$Today,$2,800sqft,$Not Arm's length,At market,None,$$16,000,$Fisher$],[$C$,$$$730,000,4$ months ago,$2,800sqft,$Arm's length,At market,$$48,000,$$$16,000,$Fisher$],[$D$,$$$760,000,$Today,$2,600sqft,$Arm's length,At market,$$41,000,$$$16,000,$Baldwin$],[$E$,$$$740,000,$Today,$2,800sqft,$Arm's length,Not at market,$$41,000,$None,Fisher$],[$F$,$$$780,000,$Today,$2,800sqft,$Arm's length,At market,$$41,000,$$$16,000,$Montgomery$]]$

a$.$ What is Applegate Financial's indicated opinion of value for the subject property based on the cost approach? Round your answer to the nearest dollar and write it in the hox.

b$.$ Fill in table $2($one cell for each row $-$ with either an $x$ and a brief explanation or a number$).$ Show your work in the workspace $($on following page$),$ which is important, especially for any possible partial credit.

Table $2$

$\backslash$table$[[$Property$,\backslash$table$[[$Put an X in the box if the property should be excluded from a$],[$sales comparative approach to valuing the subject property.$],[$Briefly explain why the property should be excluded.$]],\backslash$table$[[$Write the final adjusted value for each property that should$],[$be included in a sales comparison after taking all relevant$],[$adjustments into account.$]]],[$A$,,],[$B$,,],[$C$,,],[$D$,,],[$E$,,],[$F$,,]]$