Real Estate Math

An Indiana property valued at $520,000 has land worth $80,000. The building has a remaining economic life of 35 years. Using straight-line depreciation, what is the annual depreciation allowable for tax purposes (non-residential: 39 years)?

A$10,256
B$11,282✓ Correct
C$12,308
D$13,333

Explanation

Building value = $520,000 − $80,000 = $440,000. Annual depreciation (39 years) = $440,000 ÷ 39 = $11,282.

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