Real Estate Math
A North Dakota property's cost new is $280,000. Physical depreciation is 25% and functional obsolescence is 5%. What is the total dollar amount of depreciation?
A$70,000
B$74,000
C$84,000✓ Correct
D$98,000
Explanation
Total depreciation percentage = 25% + 5% = 30%. Total depreciation = $280,000 × 30% = $84,000.
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