Real Estate Math (alternative)

In Maryland, a building has a replacement cost of $600,000, land value of $100,000, and accrued depreciation of 20%. The total estimated value is:

A$480,000
B$425,000
C$580,000✓ Correct
D$690,000

Explanation

Depreciated building = $600,000 × (1 – 0.20) = $600,000 × 0.80 = $480,000. Total value = $480,000 + $100,000 land = $580,000.

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