A Colorado property has depreciated by 22% from its original value of $580,000. What is the current depreciated value?
Why A. $452,400 Is Correct
Answer A: A. $452,400
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
Key Real Estate Math Terms in This Question
People Also Study
Related Colorado Questions
- A Colorado property has a land value of $90,000 and improvement value of $310,000. The improvements are 15 years old with a 40-year economic life and no residual value. What is the depreciated value of the improvements using straight-line depreciation?Real Estate Math
- An appraiser uses the cost approach to value a Colorado commercial property. The replacement cost new is $800,000 and the property has 25% depreciation. The land is worth $150,000. What is the indicated value?Property Valuation
- An appraiser in Colorado uses 3 comparable sales to value a property. The adjusted values are $385,000, $392,000, and $395,000. What is the most likely final value indication from reconciliation?Property Valuation
- A Colorado appraiser calculates the value using the cost approach as follows: land value $80,000; replacement cost new $350,000; accrued depreciation 20%. What is the indicated value?Property Valuation
- A Colorado property is depreciated over 27.5 years for income tax purposes. If the depreciable basis is $275,000, what is the annual depreciation deduction?Real Estate Math
- A Colorado appraiser determines: new building cost = $200,000, land value = $75,000, accrued depreciation = $40,000. What is the indicated value using the cost approach?Property Valuation
- A Colorado investment property sold for $850,000. The original purchase price was $600,000. The owner's capital gains tax rate is 20%. Assuming a $150,000 gain after deducting improvements and depreciation recapture, what is the capital gains tax owed?Real Estate Math
- A Colorado home is assessed at 7.15% of its actual value. The actual value is $400,000 and the mill levy is 85 mills. What is the annual property tax?Real Estate Math
Key Terms to Know
A reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
Study This Topic
Practice More Colorado Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →