Real Estate Math
A property has a land value of $45,000 and improvements value of $185,000 (before depreciation). Physical depreciation is estimated at 15%. What is the depreciated improvement value?
A$157,250✓ Correct
B$157,000
C$170,000
D$165,000
Explanation
Depreciation = $185,000 x 15% = $27,750. Depreciated improvement value = $185,000 - $27,750 = $157,250.
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