Real Estate Math

A Hawaii property purchased for $1,000,000 is depreciated over 39 years (commercial). What is the annual depreciation?

AA. $25,641✓ Correct
BB. $39,000
CC. $30,000
DD. $33,333

Explanation

Commercial property (non-residential) depreciates over 39 years: $1,000,000 / 39 = $25,641 per year.

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