If the estimated reproduction cost of a house is $200,000 and the depreciation is 30%, what is the depreciated cost of the house?

To calculate the depreciated cost of the house, we start with the estimated reproduction cost, which is $200,000. Depreciation is applied to this cost to determine its current value based on wear and tear, age, or obsolescence.

In this case, the depreciation rate is 30%. To find the amount of depreciation, we calculate 30% of the reproduction cost:

Depreciation amount = 30% of $200,000 = 0.30 * $200,000 = $60,000.

Next, we subtract the depreciation amount from the original reproduction cost to find the depreciated cost:

Depreciated cost = Reproduction cost - Depreciation amount Depreciated cost = $200,000 - $60,000 = $140,000.

This calculation results in a depreciated value of $140,000 for the house. Understanding how to apply depreciation to property values is crucial in real estate, as it affects both the market price and investment analysis for potential buyers and investors.