X owned certain patent rights. He granted a license to Y to use such rights on royalty basis. The following are the relevant particulars: Year Minimum rent (Rs) Royalty earned (RS) 1995 3750 2500 1996 5000 4000 1997 6250 4500 The deficiency of any one year is to be set off against excess payable within next two years. Prepare royalty table.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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X owned certain patent rights. He granted a license to Y to use such rights on royalty basis.
The following are the relevant particulars:
Year Minimum rent (Rs) Royalty earned (RS)
1995 3750 2500
1996 5000 4000
1997 6250 4500
The deficiency of any one year is to be set off against excess payable within next two
years. Prepare royalty table.

 

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