A building with a replacement cost of $150,000 and an estimated economic life of 50 years would incur what amount in annual depreciation?

To calculate the annual depreciation of a building, you can use the straight-line depreciation method, which is commonly applied in real estate assessments. This method involves dividing the replacement cost of the property by its estimated economic life.

In this scenario, the building's replacement cost is $150,000 and its estimated economic life is 50 years. The calculation for annual depreciation would be as follows:

Annual Depreciation = Replacement Cost / Economic Life = $150,000 / 50 years = $3,000 per year.

This means that each year, the building depreciates by $3,000 from its value, reflecting its decreasing worth over time due to factors like wear and tear, market changes, and obsolescence. The straight-line method is straightforward and provides a consistent annual depreciation amount throughout the property's economic life. Thus, the correct answer indicates how financial strategies regarding real estate investment may include considerations like depreciation.