{"id":152966,"date":"2023-07-27T14:52:50","date_gmt":"2023-07-27T09:22:50","guid":{"rendered":"https:\/\/www.gkseries.com\/blog\/?p=152966"},"modified":"2023-07-27T14:52:52","modified_gmt":"2023-07-27T09:22:52","slug":"a-public-utility-building-of-5000-m2-was-constructed-5-years-before-on-a-site-of-1-hectare-the-present-value-of-open-land-in-that-location-is-rs-100-m2-and-present-construction","status":"publish","type":"post","link":"https:\/\/www.gkseries.com\/blog\/a-public-utility-building-of-5000-m2-was-constructed-5-years-before-on-a-site-of-1-hectare-the-present-value-of-open-land-in-that-location-is-rs-100-m2-and-present-construction\/","title":{"rendered":"A public utility building of 5000 m2 was constructed 5 years before, on a site of 1 hectare. The present value of open land in that location is Rs. 100\/m2 and present construction"},"content":{"rendered":"\n<p>Q. A public utility building of 5000 m<sup>2<\/sup> was constructed 5 years before, on a site of 1 hectare. The present value of open land in that location is Rs. 100\/m<sup>2<\/sup> and present construction cost of such building is Rs. 2500\/m<sup>2<\/sup>. If the value of the building is assumed to be depreciating at a constant rate of 6 percent per annum, then the present value of the property using \u2018Valuation by Cost Method\u2019 is\u00a0\u00a0 (in Rs. lakhs) (<em>rounded off to one decimal place<\/em>).<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"A\">\n<li>10.7 lakh<\/li>\n\n\n\n<li>1.7 lakh<\/li>\n\n\n\n<li><strong>101.7 lakh<\/strong><\/li>\n\n\n\n<li>11.7 lakh<\/li>\n<\/ol>\n\n\n\n<p>Ans: <strong>101.7 lakh<\/strong><\/p>\n\n\n\n<p>Explanation:\u00a0<\/p>\n\n\n\n<p>Present Land value = Rs. 100 \u00d7 10,000 = Rs. 10 lakhs<\/p>\n\n\n\n<p>Cost of Construction of the building = Total Area \u00d7 Per Sq m<\/p>\n\n\n\n<p>Cost of Construction = 5,000 \u00d7 2500 = 125 lakhs<\/p>\n\n\n\n<p>Depreciation rate = 6% Value of the building after depreciation in 5 years = 125 (1 \u2013 r)n = 125 \u00d7 (1 \u2013 0.06)5 = 91.7 lakhs<\/p>\n\n\n\n<p>Present Value of Property = Land Value + Building Value = 10+ 91.7 = 101.7 lakhs<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Q. A public utility building of 5000 m2 was constructed 5 years before, on a site of 1 hectare. The present value of open land in that location is Rs. 100\/m2 and present construction cost of such building is Rs. 2500\/m2. If the value of the building is assumed to be depreciating at a constant [&hellip;]<\/p>\n","protected":false},"author":419,"featured_media":152969,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[5141],"tags":[5140],"class_list":["post-152966","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gate","tag-gate-questions"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/152966","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/419"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=152966"}],"version-history":[{"count":1,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/152966\/revisions"}],"predecessor-version":[{"id":152970,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/152966\/revisions\/152970"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/152969"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=152966"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=152966"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=152966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}