Real Estate Math
A Delaware property's building improvements cost $600,000 to construct. Using the age-life method, with a 50-year economic life and actual age of 20 years, what is the depreciation?
A$180,000
B$200,000
C$240,000✓ Correct
D$160,000
Explanation
Depreciation rate = Actual Age ÷ Economic Life = 20 ÷ 50 = 40%. Depreciation = $600,000 × 0.40 = $240,000.
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