Answer:
$102,000
Step-by-step explanation:
Given:
Set land value = $30,000
Buying cost of the property = $150,000
Now,
The Improvement Value = Buying cost - Land value
or
The Improvement Value = $150,000 - $30,000 = $120,000
Now,
Depreciation per year = [tex]\frac{\textup{Improvement value}}{\textup{Economic life}}[/tex]
or
Depreciation per year = [tex]\frac{\textup{120,000}}{\textup{35}}[/tex]
or
Depreciation per year = $3,428.57
Therefore,
The depreciated over 14 years = $3,428.57 × 14 yrs = $48,000
Hence,
the value of property after 14 years will be
= $150,000 - $48,000
= $102,000
