Mr. Sohan works for Azania Company. The company grants 1000
shares to Mr. Sohan in 2008. At that point each share is worth Rs. 100. In
2010, he decides to sell his entire stake and at that point, the value is Rs.
120 per share. The government declares that the tax to be paid is 10% of
the entire profit. Due to the inflation, the value of a rupee in 2010 is
equivalent to 0.8 of a rupee in 2008. In this situation, which of the following
model indicates the actual tax to be paid by the investor?
A. 120 Rs at 2008 value " 100 Rs at 2010 value * (1 Re at 2008 value / 0.9
Re at 2010 value)
B. 100 Rs at 2010 value " 120 Rs at 2008 value * (1 Re at 2010 value / 0.8
Re at 2008 value)
C. 120 Rs at 2010 value " 100 Rs at 2008 value
D. 120 Rs at 2010 value " 100 Rs at 2008 value * (1 Re at 2010 value /
0.8 Re at 2008 value)

• ans D
  ans D
• 9 years agoHelpfull: Yes(1) No(3)
• hi krishna reddy can you explain ? how option is D?
  
  
• 9 years agoHelpfull: Yes(0) No(3)
• the question itself tells the answer
• 9 years agoHelpfull: Yes(0) No(8)
• So, whats the right answer
  
• 9 years agoHelpfull: Yes(0) No(1)