What is the annual charge for depreciation

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Question - A large urban HMO purchases a vacant office building to house expanded administrative functions for $500,000. The accountant, working with their real-estate agent, has estimated the value of the land at $125,000, with the remaining cost of $375,000 valued for the building. Prior to using the building, renovations costing $100,000 are completed. The renovated building has an estimated useful life of 27.5 years, with no residual value. What is the annual charge for depreciation?

Reference no: EM132984959

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