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Company OPRA has its branch in an inflationary country. OPRA has a 10-year finance lease contract with semi-annual lease payments of euro 20,000. Every two

Company OPRA has its branch in an inflationary country. OPRA has a 10-year finance lease contract with semi-annual lease payments of euro 20,000. Every two years lease payments will be adjusted to reflect the new Price index. At the beginning the index was 105. At the beginning of the third year the index was 112 and at the beginning of the second year it was 110.

How is the reassessment?

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