Given a production cost of $280,000, accrued depreciation of $60,000, and an estimated land value of $70,000, what is the estimated value of the property?

To determine the estimated value of the property, we start with the production cost of the property and consider the adjustments for depreciation and land value.

The production cost is $280,000. From this amount, we need to subtract the accrued depreciation, which is $60,000. This depreciation reflects the reduction in value due to wear and tear or obsolescence over time. After accounting for this depreciation, the value of the improvements to the property would be:

$280,000 (production cost) - $60,000 (accrued depreciation) = $220,000.

Next, we need to include the estimated land value of $70,000. Land typically appreciates over time or retains its value, whereas improvements may decline in value. When we add the land value to the adjusted value of the improvements, we have:

$220,000 (value of improvements) + $70,000 (land value) = $290,000.

Therefore, the estimated value of the property is $290,000. This assessment takes into account both the physical structures on the land and the land itself, which is essential in real estate valuations.