Which statement describes the non admitted portion of Real Estate?

• A. The permanent excess of book value over market value
• B. The depreciated value after impairment
• C. The current market value
• D. The replacement cost of the property

Answer: (C)

In statutory accounting, what can be admitted as an asset is tied to verifiable, realizable value. For Real Estate, the portion that cannot be admitted—the non admitted portion—depends on what could actually be realized from the asset in the current market. The current market value provides the most direct measure of what the asset is worth in today’s market and thus what portion would be non admitted under SAP rules. The other ideas describe related concepts (book value relative to market, impairment-driven depreciation, or replacement cost) but they don’t define the non admitted portion as cleanly as the market-based value does.