This equation, "Value of land = Anticipated sales of finished lots - development costs," is a simplified version of one used with the ______ method of land valuation.

The equation "Value of land = Anticipated sales of finished lots - development costs" accurately reflects the subdivision method of land valuation. This method is frequently used in scenarios where land is being developed for residential or commercial use, integrating the potential future financial returns from selling the developed lots and subtracting the costs incurred during the development process.

The purpose of this calculation is to estimate the land's value based on the projected profitability of subdividing and selling the lots. By considering both the potential sales revenue and the costs associated with preparing the land for sale, appraisers can derive a value that is grounded in realistic expectations of market performance.

In this context, the subdivision method stands out for its forward-looking approach, focusing on anticipated sales as a basis for valuation. Other valuation methods, such as abstraction, allocation, or sales comparison, may have different formulas or principles that do not directly align with this particular calculation of land value derived from a development-oriented perspective.