Real Estate Math
A Kentucky property is purchased for $320,000. It is depreciated for tax purposes over 39 years (commercial). What is the annual depreciation allowance?
A$6,400
B$8,205✓ Correct
C$12,800
D$16,000
Explanation
Annual depreciation = $320,000 ÷ 39 = $8,205.13 ≈ $8,205. Using the values given ($320,000), apply the appropriate formula.. The correct answer is $8,205.. This is a common calculation on the Kentucky real estate exam.
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