Real Estate Math
An appraiser estimates a building's reproduction cost at $380,000 and depreciation at 20%. What is the depreciated cost of improvements?
A$280,000
B$304,000✓ Correct
C$320,000
D$340,000
Explanation
Depreciation: $380,000 x 0.20 = $76,000. Depreciated cost: $380,000 - $76,000 = $304,000. To solve this, multiply the relevant values: $380,000 at 20%.. The correct answer is $304,000.. This is a common calculation on the Rhode Island real estate exam.
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