In the second step of the market extraction method, an appraiser calculates the dollar amount of depreciation for a comparable property by ______.

The correct approach in the second step of the market extraction method involves calculating the dollar amount of depreciation by subtracting the depreciated value from the improvements' reproduction cost. This method is grounded in the principle that the reproduction cost represents the current cost to replace properties with similar features and quality, while the depreciated value reflects the property’s current worth after accounting for wear and tear, functional obsolescence, or external factors.

In this context, determining depreciation is essential for appraisers to understand how much value the property has lost. By taking the improvements' reproduction cost and subtracting the depreciated value, appraisers arrive at an accurate assessment of how much the improvements are currently worth. This calculation helps create a clearer picture of a property's value in the marketplace, ensuring a fair and realistic appraisal.

Understanding this method and its calculations is crucial for any appraiser, as it directly impacts the valuation and the final estimation of property worth. Thus, subtracting the depreciated value from the reproduction cost not only provides a clear financial picture but also aligns with the principles of market value assessments in real estate.