Advanced AccountingMCQQuestion 5960 of 302
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9. A Machinery was giver on 3 years lease by a dealer of the machinery for equal annual lease rentals to yield 20% profit margin on cost of the machinery, which is Rs.3,00,000. Economic life of the machinery is 5 years, and estimated output from the machinery in 5 years is as follows: Year I 50,000 units Year II 60,000 units Year III 40,000 units Year IV 65,000 units ADVANCED ACCOUNTING Year V 85,000 units. Compute Annual Lease Rent.

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — ₹ 30,000

All Options:

  • A₹ 30,000 ✓
  • B₹ 60,000
  • C₹ 50,000
  • D₹ 36,000

Detailed Solution & Explanation

Correct Answer: Option **A** Explanation: As per the official suggested answer, option **A** is correct. Hence, **Option A** is the correct answer.

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