GFOA Exam CPFO Topic 7 Question 102 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 102
Topic #: 7

[All CPFO Questions]

A building with a replacement value of $1,000,000 has depreciated by 50%. What amount of risk has been unwittingly assumed?

A$500,000

B$550,000

C$600,000

DNone of these

Show Suggested Answer

Suggested Answer: C

by Kent at Oct 21, 2024, 12:16 AM

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Earlean

2 days ago

Wait, isn't the replacement value $1,000,000? Wouldn't the risk be the difference between the depreciated value and the replacement value? I'll pick C.

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France

6 days ago

Hmm, if the building has depreciated by 50%, then the remaining value is $500,000. I'll go with A.

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Myrtie

10 days ago

I believe the correct answer is B) $550,000 because the building has depreciated by 50%.

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Margret

12 days ago

I agree with Roosevelt, the depreciated amount is $500,000.

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Roosevelt

17 days ago

I think the answer is A) $500,000.

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