12-Mr. Ehsan had purchased a piece of land for RO 100,000, in the year 2001 when the price index was 125, He sold the same in the year 2020 when the price index was 500, for RO 500,000. What profit or losses should be recorded using current purchasing power method?

a.

Loss of RO 100,000

b.

Profit of RO 100000

c.

Loss of RO 400,000

d.

Profit of RO 400000

13-Al Meedaniyah Company purchased goods evenly throughout the year and the purchase expenses amounted RO 15,000. The price index at the beginning of the year was 110 and at the end of the year was 130. What is the value of the purchases to be recorded as per CPP method?

a.

RO 15,250

b.

RO 16,500

c.

RO 15,500

d.

RO 16,250