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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Troy

2 months ago

Hmm, I wonder if the building's owner has any insurance to cover the depreciated value. That would be a smart move.

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Pearlie

3 months ago

I've got it! The amount of risk is the depreciated value, which is $500,000. A is the correct answer. Easy peasy.

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Glennis

1 months ago

Yes, A is the right answer. $500,000.

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Susy

2 months ago

I agree, the depreciated value is the amount of risk. A is correct.

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Cletus

2 months ago

I think it's $500,000, so A.

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Lashon

3 months ago

This is a tricky one. I'm not sure if the question is asking about the risk or the depreciated value. Let me think this through a bit more.

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Julianna

2 months ago

C) $600,000

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Cheryl

2 months ago

B) $550,000

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Golda

2 months ago

A) $500,000

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Earlean

3 months 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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Carmela

2 months ago

Great, option C it is then.

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Leonie

2 months ago

That makes sense, I'll go with option C as well.

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Jean

2 months ago

I agree, so the risk would be $600,000.

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Lelia

3 months ago

I think the risk would be the difference between the replacement value and the depreciated value.

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France

3 months 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

3 months ago

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

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Margret

3 months ago

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

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Roosevelt

3 months ago

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

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