Which of the following is the best definition of a sales leaseback? A lease in which the
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Question:
Which of the following is the best definition of a sales leaseback?
A lease in which the lessee sells an asset to the lessor and then leases it back.
A lease where the lessor borrows a substantial fraction of the cost of the leased asset.
A shorter-term lease where the lessor is responsible for insurance, taxes, and upkeep. Often cancellable on short notice.
A longer-term, fully amortized lease under which the lessee is responsible for upkeep. Usually not cancellable without penalty.
A lease in which the lessor is the owner for tax purposes. Also called a true lease or a tax lease.
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