Real Estate Math
A Vermont property has a building value of $280,000 and a land value of $70,000. The property depreciates at 2% per year using straight-line depreciation. What is the annual depreciation?
A$5,600✓ Correct
B$7,000
C$7,350
D$6,300
Explanation
Only the building (not land) depreciates. Annual depreciation = Building Value × Depreciation Rate = $280,000 × 0.
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