Real Estate Math
An Iowa property depreciates for tax purposes using straight-line depreciation over 27.5 years. The building value (not land) is $220,000. What is the annual depreciation?
A$7,273
B$8,000✓ Correct
C$8,800
D$10,000
Explanation
Annual depreciation = $220,000 ÷ 27.5 = $8,000. Using the values given ($220,000), apply the appropriate formula.. The correct answer is $8,000.. This is a common calculation on the Iowa real estate exam.
Related Iowa Real Estate Math Questions
- An Iowa lease for 2,200 sq ft at $22/sq ft/year with 3% annual increases. What is the rent in year 2?
- An Iowa duplex generates $1,450/month per unit. The monthly expenses are $1,200. What is the annual NOI?
- A broker lists a property at $425,000 and the buyer offers $400,000. The seller agrees to split the difference. What is the agreed sales price?
- An Iowa home purchased for $175,000 is sold 6 years later for $220,000. What is the total percentage gain?
- What is the area in square feet of an Iowa living room that measures 18 feet by 22 feet?
- A property is assessed at $150,000 and the assessment ratio is 80% of market value. What is the estimated market value?
- An Iowa property generates annual gross rents of $48,000. A vacancy and collection loss of 5% is deducted. Operating expenses are $22,000. What is the NOI?
- An Iowa commercial property has an NOI of $72,000. If the cap rate is 8%, what is the value?
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →