one of the following is not a primary disadvantage of leasing from the lessee perspective is the:
Q: What are the major advantages of leasing a fixed asset rather than purchasing it?
A: A lease can be defined as an arrangement between the lessor(owner of the asset) and the lessee (user…
Q: What is non-tax-oriented lease?
A: Non- tax Oriented lease: The lease where the lessor cannot avail tax exemptions for the capital…
Q: What are the fundamental differnces between lessor and lessee?
A: Lessor is the person who has the ownership of the leased asset and grants on lease his asset for a…
Q: The amount of gain (loss) on sale and leaseback transaction is: Group of answer choices The…
A: Sales and lease back transaction refers to the transaction where an asset is sold by the seller to a…
Q: leasing
A: Introduction: Leasing is defined as an agreement between two parties known as lessor & lessee…
Q: If the residual value of a leased asset is guaranteed by a third party:
A: A lease is an arrangement under which a lessor agrees to allow a lessee to control the use of…
Q: fair value model for investment property differ from the revaluation model for PPE
A: Fair value model and revaluation model are methods of valuation of non-current assets as per…
Q: Determine the indifference price for a property that had an assumable below-market-rate loan?
A: Indifference price is the price at which the investor is indifferent to investing in any of the two…
Q: explain motivations for leasing assets instead of purchasing them;
A: Introduction: Leasing is a mechanism by which the company may receive some capital assets for use,…
Q: What is the significance of the passive activity loss limitation (PAL) rules for real estate…
A: Significance of the passive activity loss limitation (PAL) rule for real estate investors: The…
Q: a) Why would a DRC (Depreciated Replacement Cost) valuation not normally be acceptable for secured…
A: When the physical deterioration or any other obsolescence of the assets is deducted from the current…
Q: Why allow the fair value option for financial assets and liabilities and not for, say, buildings or…
A:
Q: From the following identify the cost that is not a cost of PPE? Professional fees Nonrefundable…
A: Property plant and machinery are the fixed assets of the company which helps in production process.…
Q: lessee
A: Lease is a financial arrangement where the right to use the asset is given by the owner to another…
Q: Does a lessee have an option not to separate lease and non lease components?
A: Lease: A lease or a lease agreement is a binding contract between two parties that dictates…
Q: What if the lessee is unaware of the lessor’s implicit rate?
A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period…
Q: Which is not an advantage of leasing from a lessee's viewpoint? A.The asset can be acquired without…
A: The answer is as fallows
Q: What contingencies are commonly found in permanent or take-out loan commitments? Why are they used?…
A: The contingencies found in permanent or take-out loan commitments and their use are as follows: A…
Q: From the following identify the cost that is not a cost of PPE? Professional fees Nonrefundable…
A: A company's physical or tangible long-term assets having a life of at least one year are referred to…
Q: 6- Which one of the following is not an advantage of leasing fixed asset? a. Lessee has access to…
A: Lease means giving out the assets by lessor to lessee to use that assets in return of rent.…
Q: If the lessor has a substitution right throughout the period of use of the leased asset, which of…
A: A substantive substitution right exists if the lessor has the practical ability to substitute…
Q: Why might refinancing be considered an alternative to a sale-leaseback?
A: Introduction: The given question is related to the concept of real estate finance and investments.…
Q: What are the major lessor groups in the United States?What advantage does a captive have in a…
A: Lease: A contractual arrangement between the owner of the asset and the user of the asset for a…
Q: Which of the following is not an essential characteristic of a liabili O All are essential…
A: Liabilities are those present obligations that are due to business and they could be short-term in…
Q: Common examples of financial abuse include:?
A: Financial abuse typically involves a family member or another person whom the older adult trusts…
Q: What is meant by “loss to lease”? Explain?
A: Loss to lease: It is the term used in Real Estate in leasing of property mainly apartment complexes,…
Q: Which one of the following is not an advantage of leasing fixed asset? a. Repairs and maintenance…
A: The basic concept of lease contract is there are mainly two parties involving in this lease…
Q: Discuss the residual value of the leased asset. How does it impact the PV of rental payments…
A: Lease means a type of agreement in which one party gives its valuable assets to other party for a…
Q: What are the disadvantages of lease?
A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular…
Q: difference between hire purchase and leasing
A: The hire purchase and leasing are mainly different due to the term of ownership.
Q: One of the advantages of leasing rather than purchasing an asset is that leasing offers flexibility…
A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…
Q: What are the general desirability among users to lease rather than own the space they need in their…
A: Leasing is a method through which person can hire fixed asset or place for certain period of time by…
Q: Why does the so-called distressed property situation exist?
A: Distressed property refers to those which have value less than the market value. This situation…
Q: The amount of gain (loss) on sale and leaseback transaction is: A. The difference of fair value and…
A: Gain is booked when money is received on the sale of the asset. leasing back can be assumed to be…
Q: What are the key advantages and disadvantages of leasing?
A: Leasing:Leasing is a contractual agreement between the lessor and lessee for hiring of a particular…
Q: Which of these is not typically a responsibility of a property manager? Maintenance programs O…
A: Property manager is the person who sees the day to day working of the real estate.The responsibility…
Q: What is the main purpose of loan loss provisioning? Explain the concepts of incurred loss model and…
A: The loan loss provision is the cash reserve created by the banks for the future credit risk. The…
Q: This principle states that asset and income should not be overstated and liabilities and expense…
A: Accounting principles are a set of rules and guidelines that are required to be followed by entities…
Q: In a sale and leaseback transaction, which of the following statements is most incorrect?
A: Answer is option B) The buyer-lessor recognizes an gain.
Q: which of the following characteristics can be used to describe an alternative except a. Illiquidity…
A: Alternative Investment is a type of investment which is different from conventional method of…
Q: From an economic point of view, which activity is regarded as an undertaking to prevent a loss in…
A: Activities undertaken by a company can be divided in to two types. They are activities involving…
Q: Should liability for rent deposit be amortized? Why or why not?
A: The assets are amortized as they provide benefits for the long period.
Q: Which of the following scenarios regarding a sale and leaseback transaction would result to a loss…
A: If fair value is less than the carrying amount of the asset then the loss on sale back should be…
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- Which one of the following is not an advantage of leasing fixed asset? a. Repairs and maintenance are borne by the lessor b. Risk of loss due to obsolescence is on the lessee c. Lessee has access to asset without the need to purchase the asset d. Lessor becomes the owner of the assetIncludes claims to specific assets in the event of default Group of answer choices Secured Unsecured Increases Asset Increases Liability6- Which one of the following is not an advantage of leasing fixed asset? a. Lessee has access to asset without the need to purchase the asset b. Lessor becomes the owner of the asset c. Repairs and maintenance are borne by the lessor d. Risk of loss due to obsolescence is on the lessee
- Impairment loss is a situation whenSelect one:a. Carrying amount of an asset is greater than recoverable amount of it.b. Carrying amount of an asset is smaller than that of recoverable amount of it.c. Carrying amount of an asset is equal to recoverable amount of it.d. Correct option is not listedKA. -Assume an investment classified as available for sale. Your value of market is less than its amortized cost. Which of the following assertions is correct? a. If management intends to sell the investment, it will recognize all of the impairment loss in the Statement of Income and Expenses. b. If management does not intend to sell the investment and the loss is for credit (credit los), will be recognized in the Statement of Income and Expenses. c. If management does not intend to sell the investment and the loss is not per credit (credit los), it will be recognized in Other comprehensive income . d. All of the above are correct. - Assume an investment in common stock accounted for using the heritage method. The investment will be impaired if: a. Its market value is less than its amortized cost and the loss of value it is not temporary (other than temporary) b. Its market value is less than its book value and the loss of value it is not temporary (other than temporary) c. Its market…Risks and benefits of ownership transfer to the lessee with an operating lease. true false
- In a sale and leaseback transaction, which of the following statements is most incorrect? A. The seller-lessee records a rent expense. B. The buyer-lessor recognizes an gain. C. The seller-lessee derecognizes an asset. D. The buyer lessor recognizes an income.What if noncurrent asset is not a subtitle I can chose from? Is there another heading I can use or do I not put it on the balance sheet? Would it then fall under investments or intangible assets?5. This is a class of asset that are not essentials in the on going operations of thebusiness.A. Fixed Assets C. Non-Operating AssetsB. Current Assets D. None of the above
- If it loses significant influence over the associate, the balance of the investment in the associate is recorded at:A. Fair valueB. Identifiable net asset propertyC. Cost methodD. Keep the equity methodHow does the analysis of a sale-leaseback differ from the analysis of owning versus leasing?Which of the following is not part of the definition of an asset O a. Control of a resource O b. Resulting from a past event O c. Inflow of economic benefits Od. During the accounting period
