8-17. A real estate company purchased an office building to be used as rental property. The total price was $1,100,000, of which $100,000 was the appraised value of the land. The building had an estimated remaining life of 20 years, with an estimated salvage value of zero. After having owned the property for 10 years, the company received an offer of $700,000 for it, of which $200,000 was the appraised value of the land. Find the book value of the property at the end of 10 years using straight-line depreciation. The company had received net receipts after all disbursements for mainte- nance, property taxes, insurance, and so on of $120,000 a year for the 10 years. Find the true rate of return (before income taxes) earned on the original investment if the property is now sold for $700,000