SSC JE Civil Engineering 30-Oct-2020 Shift 1 Paper

Cost of Construction of building i.e. Purchase Value = Rs. 50, 000/-
Salvage Value = 10 % of Purchase Value = Rs. 5,000/-
Design life of building = 50 Years
Annual Depreciation =

(50,000−5,000)

50

⇒ Annual Depreciation = Rs. 900 /year
According to straight-line depreciation method, the building will depreciate Rs. 900 every year.
Total Depreciation at the end of 30 years = Rs. 900 × 30 = Rs. 27,000/-
Present Value at the end of 30 years = {Purchase Value} – {Total Depreciation at the end of 30 years}
= Rs. 50,000 – Rs. 27000
= Rs. 23,000/- Ans.