Real Estate Math
A North Dakota appraisal shows the cost new of a building is $280,000. Physical depreciation is estimated at 20%, functional obsolescence at 5%, and external obsolescence at 5%. What is the total depreciation in dollars?
A$56,000
B$70,000
C$84,000✓ Correct
D$98,000
Explanation
Total depreciation rate = 20% + 5% + 5% = 30%. Total depreciation = $280,000 × 30% = $84,000.
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