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4. An investor purchased a warehouse for $345,000 to be rented out at market rental rates. The assessor's office tells him that the land value
4. An investor purchased a warehouse for $345,000 to be rented out at market rental rates. The assessor's office tells him that the land value is $70,000. How much depreciation expense can he take using straight line depreciation? 5. A house recently sold for $133,000. It has depreciated by 15% since it was originally purchased. What was the original purchase price? 6. If the real rate of return is 1%, what are the expected rates of inflation and the default premium associated with the following securities? The one year treasury rate = 4.6% The one year corporate bond rate = 6.1%
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