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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?

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Answer:

$8,800

Step-by-step 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 รท 25 years

Annual depreciation = $8,800

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

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