Real Estate Math
A building has a replacement cost of $350,000, effective age of 10 years, and economic life of 50 years. What is the accrued depreciation?
A$60,000
B$70,000✓ Correct
C$80,000
D$35,000
Explanation
Depreciation rate = Effective Age ÷ Economic Life = 10 ÷ 50 = 20%. Accrued depreciation = $350,000 × 20% = $70,000.
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