Property Valuation
An Alaska property has a replacement cost new of $350,000 and is 30 years old with a 70-year economic life. Annual straight-line depreciation is approximately:
A$3,500/year
B$4,500/year
C$5,000/year✓ Correct
D$5,600/year
Explanation
Annual straight-line depreciation = Replacement cost ÷ Economic life. $350,000 ÷ 70 = $5,000/year.
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