Posted by Rick, the Probate Guy on June 07, 2009 at 19:02:28:
In Reply to: RE Licence Textbook is WRONG, I'M RIGHT! posted by investorapprentice on June 07, 2009 at 08:34:23:
As posted, the problem says that is "has depreciated" from the original cost. This is not the same as "has BEEN depreciated" from the original cost.
$140,000.oo Year 0 = acquisition price (basis)
$133,000.00 year 1 = 1st anniversary (X 95%)
$126,350.00 year 2 = 2nd " " " (X 95%)
$120,032.50 year 3 = 3rd " " " (X 95%)
$114,030.87 year 4 = 4th " " " (X 95%)
$108,329.32 year 5 = 5th " " " (X 95%)
$102,912.85 year 6 = 6th " " " (X 95%)
$ 97,767.21 year 7 = 7th " " " (X 95%)Also, we're searching for the value of the house without the cost of lot.
So, where did I go wrong here?