alleryStart learning →Dealer revenue is Rs 7,50,000, asset cost Rs 6,00,000, present value of unguaranteed residual Rs 20,000. Selling profit?
ARs 2,00,000
BRs 1,30,000
CRs 1,70,000
DRs 1,50,000
Answer & Solution
Correct answer: C. Rs 1,70,000
Cost of sale is 600000 - 20000 = 580000, so profit is 750000 - 580000 = 170000.
Keep practising Ind AS 116 Leases
Browse all Ind AS 116 Leases questions for CA Final, or explore more Financialreporting topics.
Related questions
Ind AS 116 applies to annual reporting periods beginning on or after:At transition, a practical expedient lets an entity avoid reassessing:Modified retrospective adoption: the cumulative effect goes to:Asset worth Rs 5,00,000 sold for Rs 4,60,000 in leaseback at market rent. Rs 40,000 shortfSame sale-leaseback: total gain is Rs 2,00,000 and the retained right is 25% of fair valueSale-leaseback: carrying Rs 4,00,000; fair value Rs 6,00,000; PV of market lease payments A sale and leaseback transfer fails the sale test. The seller-lessee:In a sale and leaseback, whether the transfer is a sale is decided using: