Real Estate Math
A South Dakota commercial building cost $1,200,000 to construct. It has a 40-year economic life and straight-line depreciation. What is the annual depreciation amount?
A$24,000
B$30,000✓ Correct
C$40,000
D$48,000
Explanation
Annual depreciation = $1,200,000 ÷ 40 years = $30,000 per year. Using the values given ($1,200,000), apply the appropriate formula..
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