Real Estate Math (alternative)
A Maryland investor purchases a $950,000 building and depreciates it over 39 years (commercial). Annual depreciation for tax purposes is approximately:
A$19,231
B$24,359✓ Correct
C$34,546
D$39,000
Explanation
Annual depreciation = $950,000 ÷ 39 = $24,359 per year (commercial real property is depreciated over 39 years under U.S.
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