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Please do not simply type out full questions and ask for a full solution. That is not what we are here for. You must have a copy of the examiners answer (this is a past exam question and the examiners answer is on the ACCA website) and you should ask about whatever part(s) of the answer are not clear to you. You can find lectures working through the whole of the exam in which this question was asked, linked from the main Paper F5 page. (Follow the link to "Revision Kit Live")