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b. Where the INCOME (CAPITALIZATION) APPROACH is used, there will be documentation to support the income, expenses, capitalization rate and remaining economic life. The economic rent will be supported by market information. c. Where the COST APPROACH is utilized, the appraisal report will contain the specific source of cost data and an explanation and support of each type of accrued depreciation. d. When using the cost approach for either building improvements or other improvements pertaining to the realty, i.e., fixtures, machinery, equipment, etc., the appraiser must include in the appraisal report the cost source used for each item. If a cost manual or service is used, the appraisal report must include the specific reference by cost manual section and page. See Section 7.05.04.00 of Caltrans Appraisal Handbook. 9. Damages and Benefits. The "before and after" method of valuation, as interpreted by California State law, will be used in partial acquisitions. Benefits are to be offset against the damages to the remainder in accordance with California State law. The after value appraisal will eliminate any consideration of damages that are not compensable or benefits not allowable under California State law even though they may, in fact, exist in the ultimate value of the remaining property in the market. See Section 7.09.00.00 of Caltrans Appraisal Handbook. 10. Appraisal of the After Value. The appraisal of the after value will be supported to the same extent as the appraisal of the before value. This support will include one or more of the following: a. Sales comparable to the remainder properties b. Sales of comparable properties from which there have been similar acquisitions or takings for like usages. c. Development of the income approach on properties which show economic loss or gain as a result of similar acquisitions or takings for like usages. d. Public sales of comparable lands by the State or other public agencies. e. In the event the data described in a through d above, are not available, the appraisal will so state and give the appraiser's reasoning for the value estimate. 11. Reconciliation of Valuation Approaches. Where two or more of the approaches of value are used, the appraisal will show the reconciliation of the separate indications of value derived by each approach along with a reasonable explanation for the final conclusion of value. This reconciliation will be included for both before and after appraisals. 7 of 10 Appendix "B"