SSC JE Civil Engineering 29-Oct-2020 Shift 1 Paper

Question : 134 of 200

Marks: +1, -0

The cost of construction of a structure is Rs. 4,00,000/-. The estimated life of the structure is 50 years. At the end of its life period the scrap value is 10% of cost of construction. Considering depreciation at constant rate, what will be the value of the structure after 25 years (excluding scrap value)?

Rs. 2,20,000
Rs. 3,60,000
Rs. 3,00,000
Rs. 1,80,000

Validate

Solution:

FC = Rs. 4,00,000 /-
SV = 10% of FC = Rs. 40,000 /-
Resign life, N = 50 years
Total depreciation = FC - SV
Total depreciation = 4,00,000 - 40,000 = Rs. 360,000
Depreciation per year

= {{{{\Total\;\Depreciation}}}}/{{{{\Deign\;\life}}}}

Depreciation per year =

360000/50

= Rs. 7200
Total depreciation after 25 years = 7200 × 25 = Rs. 180,000
∴ Value of the structure after 25 years (excluding scrap value) = 4,00,000 - 180,000 - 40,000 = Rs. 180,000

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