Real Estate Math
A building was purchased for $600,000. The lot was valued at $100,000. Using straight-line depreciation over 30 years, what is the annual depreciation on the building?
A$15,000
B$16,667✓ Correct
C$20,000
D$25,000
Explanation
Building value = $600,000 − $100,000 = $500,000. Annual depreciation = $500,000 ÷ 30 = $16,667.
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