zephyranalyst

Why is depreciation calculated based on the improvement cost and not the total cost?
Looks weird to me.

kickthatcfa

it is not weird. this is exactly the example in the text book (douglas Manor, or whatever).

CP

brainsX

legendary...although probably wont need it. cheers cpk

SFoyil

true, but there is more than improvement on this building. They didn't say here but they are assuming that basically the land cost is $525000 - 451,000 = $74k. The point is that we should depreciate based on total price minus land.