Real Estate Math
A Kentucky property's market value is $340,000 and its replacement cost new is $360,000. The estimated depreciation is:
A$10,000
B$15,000
C$20,000✓ Correct
D$25,000
Explanation
If land value is $120,000 (hypothetical), depreciated improvement value = $340,000 − $120,000 = $220,000 vs. RCN of $360,000 − $120,000 = $240,000 improvement only.
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