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Continuing MINDA SAR: at end Y2, FV = ₹139; expected exercise 91%. Compute Y2 incremental expense.
A₹26,510 (= 11,000 × 91% × 139 = ₹13,91,390 cumulative; Y2 incremental = 13,91,390 − Y1 cumulative ₹13,64,880 = ₹26,510)
B₹73,040
C₹2,64,880
D₹13,91,390
Answer & Solution
Correct answer: A. ₹26,510 (= 11,000 × 91% × 139 = ₹13,91,390 cumulative; Y2 incremental = 13,91,390 − Y1 cumulative ₹13,64,880 = ₹26,510)
Cumulative cash-settled liability at Y2 = 11,000 × 91% × ₹139 = ₹13,91,390. Y1 cumulative liability was ₹13,64,880 (11,000 × 94% × 132). Y2 incremental = ₹26,510.
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