Question

If a property was purchased at $250,000 with a land value of $30,000, what is the annual depreciation over an economic life of 25 years?

Answer 1

Answer:

$8,800

Explanation:

Calculation for what is the annual depreciation over an economic life of 25 years

First step is to calculate the value of the building value

Value of the building value=$250,000 - $30,000

Value of the building value= $220,000

Now let calculate the annual depreciation over an economic

Annual depreciation =$220,000 ÷ 25 years

Annual depreciation = $8,800

Therefore the annual depreciation over an economic life of 25 years will be $8,800