Real Estate Math
Using the straight-line depreciation method over 27.5 years (residential), what is the annual depreciation on an improvement valued at $275,000?
A$5,000
B$10,000✓ Correct
C$7,500
D$12,500
Explanation
Annual depreciation = $275,000 ÷ 27.5 = $10,000. Using the values given ($275,000), apply the appropriate formula.. The correct answer is $10,000.. This is a common calculation on the Georgia real estate exam.
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