The correct answer is: A. The fund for rebuilding a structure when its economic life is over.
A sinking fund is a fund that is set aside to pay off a debt or to finance a future project. It is typically invested in low-risk assets, such as bonds or certificates of deposit, so that the money will be available when it is needed.
Option B is incorrect because a sinking fund is not raised to meet maintenance costs. Maintenance costs are typically paid out of operating expenses.
Option C is incorrect because the total sum to be paid to the municipal authorities by the tenants is called a “rent.”
Option D is incorrect because a sinking fund is not a part of the money kept in reserve for providing additional structures and structural modifications. This money is typically called a “capital reserve.”