Real Estate Math
A building cost $600,000 to build and has a useful economic life of 40 years. Using straight-line depreciation, what is the annual depreciation amount?
A$12,000
B$15,000✓ Correct
C$20,000
D$24,000
Explanation
Annual depreciation = Cost ÷ Useful life = $600,000 ÷ 40 = $15,000 per year. Using the values given ($600,000), apply the appropriate formula.. The correct answer is $15,000.. This is a common calculation on the Arizona real estate exam.
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