Real Estate Math
Using straight-line depreciation, a property with improvements of $480,000 and a 27.5-year useful life has an annual depreciation of:
A$17,455✓ Correct
B$16,000
C$24,000
D$17,940
Explanation
Annual depreciation = $480,000 ÷ 27.5 = $17,454.55 ≈ $17,455. Using the values given ($480,000), apply the appropriate formula.. The correct answer is $17,455.. This is a common calculation on the Georgia real estate exam.
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