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The estimated reproduction cost of a house is $200,000. The estimated depreciation on the house is 30%. What is the depreciated cost of the house?

User Moty
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Final answer:

The depreciated cost of a house with an estimated reproduction cost of $200,000 and a 30% depreciation is calculated as $140,000. This is found by multiplying the reproduction cost by 70% (which is 100% minus the 30% depreciation).

Step-by-step explanation:

To calculate the depreciated cost of the house, one must take into account the estimated reproduction cost of the house, which in this case is $200,000, and the estimated depreciation on the house, which is 30%. The depreciated cost is found by reducing the reproduction cost by the depreciation percentage. The formula to find this is as follows: Depreciated Cost = Reproduction Cost x (1 - Depreciation Rate).

Using the numbers from the question, the calculation would be: $200,000 x (1 - 0.30) = $200,000 x 0.70 = $140,000. Therefore, the depreciated cost of the house would be $140,000.

User Marc Greenstock
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