A house and lot valued at $ 55000 is being depreciated over 25 years?

Question

A house and lot valued at $ 55000 is being depreciated over 25 years by the straight-line method . After 18 years, the book value of the asset is $ 37000 . Since only the value of the house depreciates, find the assumed value of the land. (Ignore inflation.)
The assumed value of the land is $:

Answer 1

The total depreciation is 18k over 18 years so 1k/year.

Over 25 years it will be 25k. So the house is valued at 25k and the land at 30k.

Answer 2

Value - book value = depreciated value
55,000 - 37,000 = 18,000
Since it's a straight-line depreciation, the value is depreciating 1,000 per year (because 18 years).

After 25 years, the house will have depreciated by 25,000.

So, the land is valued at 30,000 (55,000 - 25,000).

Answer 3

$55,000 - $37,000 = $18,000

$18,000/18 = $1,000/year

$1,000/year * 25 = $25,000; house value.

$55,000 - $25,000 = $30,000; land value