Start learning →

Dealer lessor's artificially low rate limits selling profit to that at

AFinance income only
BA commercial rate
CA zero profit level
DThe asset's full cost
Answer & Solution
Correct answer: B. A commercial rate
A low quoted rate would pull too much income into the sale, so profit is restricted to what a commercial rate would give.
Practise this question with Quill — CA Inter →

Keep practising AS 19 Leases

Browse all AS 19 Leases questions for CA Inter, or explore more Accounting topics.

Start a AS 19 Leases lesson →
Related questions