Real Estate Math
An owner purchased a Connecticut rental property for $400,000 and it depreciated in value to $320,000 over 5 years. What was the average annual depreciation?
A$12,000
B$16,000✓ Correct
C$20,000
D$24,000
Explanation
Total depreciation = $400,000 − $320,000 = $80,000. Annual depreciation = $80,000 ÷ 5 = $16,000 per year.
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