House A has an ocean view and House B does not.In all other respects,the two houses are the same.The market price of house A is $2,800,000; the market price of house B is $2,600,000.The ocean view is therefore valued at
A) $200,000.
B) $1,950,000.
C) -$700,000.
D) $2,700,000.

Question

Quizplus · Accepted Answer

The only difference in market price between the two houses is the ocean view. Therefore, the value of the ocean view is the difference in the market price, which is $2,800,000 - $2,600,000 = $200,000.

House a Has an Ocean View and House B Does