Question
please solve both, its a request Question 1 (1 Mark) Oasis LLC wants to change machines. On January 2018, Oasis makes an Ijarah Muntahia Bittamleek
please solve both, its a request
Question 1 (1 Mark)
Oasis LLC wants to change machines. On January 2018, Oasis makes an Ijarah Muntahia Bittamleek contract with Sohar Islamic Bank (SIB) for 12 years. SIB purchases ten (10) machines. Cost of each machine is 11000 OMR and maintenance expenses for each machine is 300 OMR per year. Oasis LLC will pay rental of 150 OMR per machine each month. At the end of contract, SIB agrees to sell each machine at 600 OMR at the end of contract period.
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Calculate profit/loss of SIB for this contract.
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If Bank gives the machines as Gift at the end of contract, what will be the change in profit compared to first case?
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Question 3 (2 Marks)
The following are information of the operations for Islamic Bank of Nizwa (IBN) for the year 2019:
Revenue from Fin. Oper. Inv. Act.
400 million
Cost of Fin. Oper. Inv. Act.
335 million
Indirect Expenses
76 million
Fee Based Income
24 million
The profit from operation is before the distribution of profit to Mudharabah depositors.
Profit sharing ratio: 80% bank, 20% depositors.
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Calculate profit of IBN using SIAM (Separate Investment Account Method).
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Calculate profit of IBN using PM (Pooling Method).
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Which method provides higher profit to bank?
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