Real Estate Math
A Colorado property purchased for $280,000 is 7 years old and was depreciated at $6,000/year for tax purposes. What is the adjusted cost basis?
A$202,000
B$238,000✓ Correct
C$252,000
D$280,000
Explanation
Total depreciation taken = $6,000 × 7 years = $42,000. Adjusted cost basis = $280,000 − $42,000 = $238,000.
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