Real Estate Math

A Maryland residential building was constructed for $180,000 (excluding land) and has depreciated 25% since it was built. The current depreciated value of the building is:

A$135,000✓ Correct
B$143,000
C$150,000
D$155,000

Explanation

Depreciation = $180,000 × 25% = $45,000. Current value = $180,000 – $45,000 = $135,000.

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