Real Estate Math
Using straight-line depreciation over 27.5 years, what is the annual depreciation on a $275,000 residential rental building (excluding land)?
A$8,000
B$10,000✓ Correct
C$12,000
D$9,000
Explanation
Annual depreciation = Building Value ÷ 27.5 = $275,000 ÷ 27.5 = $10,000 per year. Using the values given ($275,000), apply the appropriate formula.. The correct answer is $10,000.. This is a common calculation on the Delaware real estate exam.
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