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Rtp may2019-AS 19

Accountancy

How is this computation possible ? I didn't understand the logic behind this computation.

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Swathi Krishna

Swathi Krishna

CA Final

★ 8K+

28-Sep-20 01:12

345

Answers (1)

The return for lessor is 10%. The lessor would get lease payments + unguaranteed residual value. The present value of lease payments + present value of unguaranteed residual value should be equal to the fair value.

CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

28-Sep-20 06:47

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