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A businessman purchased an old building at a cost of 1,00,000 on the basis that the cost of land be 260,000 and cost of
the building structure be 740,000, Considering the coefficient of the sinking fund for 20 years be 0.035 and scrap value
be 10% of the cost of the building, find the annual instalment for the sinking fund for 20 years.
ANS 71,260?
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A businessman purchased an old building at a cost of 1,00,000 on the b...
**Given Information:**

- Cost of the land = $260,000
- Cost of the building structure = $740,000
- Total cost of the building = $1,000,000
- Coefficient of the sinking fund = 0.035
- Scrap value of the building = 10% of the cost of the building

**Calculation:**

1. Calculate the scrap value of the building:
Scrap value = 10% of $740,000
= $74,000

2. Calculate the depreciable value of the building:
Depreciable value = Cost of the building - Scrap value
= $740,000 - $74,000
= $666,000

3. Calculate the annual sinking fund deposit:
Annual sinking fund deposit = Depreciable value × Coefficient of the sinking fund
= $666,000 × 0.035
= $23,310

4. Calculate the annual sinking fund deposit for 20 years:
Annual sinking fund deposit for 20 years = Annual sinking fund deposit × Number of years
= $23,310 × 20
= $466,200

5. Calculate the annual installment for the sinking fund for 20 years:
Annual installment = Annual sinking fund deposit for 20 years + Cost of the land
= $466,200 + $260,000
= $726,200

Therefore, the annual installment for the sinking fund for 20 years is $726,200.
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A businessman purchased an old building at a cost of 1,00,000 on the basis that the cost of land be 260,000 and cost ofthe building structure be 740,000, Considering the coefficient of the sinking fund for 20 years be 0.035 and scrap valuebe 10% of the cost of the building, find the annual instalment for the sinking fund for 20 years.ANS 71,260?
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A businessman purchased an old building at a cost of 1,00,000 on the basis that the cost of land be 260,000 and cost ofthe building structure be 740,000, Considering the coefficient of the sinking fund for 20 years be 0.035 and scrap valuebe 10% of the cost of the building, find the annual instalment for the sinking fund for 20 years.ANS 71,260? for Civil Engineering (CE) 2024 is part of Civil Engineering (CE) preparation. The Question and answers have been prepared according to the Civil Engineering (CE) exam syllabus. Information about A businessman purchased an old building at a cost of 1,00,000 on the basis that the cost of land be 260,000 and cost ofthe building structure be 740,000, Considering the coefficient of the sinking fund for 20 years be 0.035 and scrap valuebe 10% of the cost of the building, find the annual instalment for the sinking fund for 20 years.ANS 71,260? covers all topics & solutions for Civil Engineering (CE) 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A businessman purchased an old building at a cost of 1,00,000 on the basis that the cost of land be 260,000 and cost ofthe building structure be 740,000, Considering the coefficient of the sinking fund for 20 years be 0.035 and scrap valuebe 10% of the cost of the building, find the annual instalment for the sinking fund for 20 years.ANS 71,260?.
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