Why does a finance lease is economically similar to a purchase of the asset?

Q: Of what significance is (a) an unguaranteed and (b) a guaranteed residual value in the lessor's…

A: The amount to be recovered by the lessor is the same whether the residual value is guaranteed or…

Q: In a sale-leaseback transaction the owner of an asset sells it and immediately leases it back from…

A: Sale-Leaseback approach: In the sale-leaseback approach, the owner of the leased asset sells it and…

Q: Describe the effect of a “bargain-purchase option” onaccounting for a capital lease transaction by a…

A:

Q: Explain the ways in which property owners can structure leases in order to recover operating…

A: Leasing refers to acquiring an asset from a lessor in lieu of rental payments.

Q: Describe how a "bargain buy option" affects the lessee's accounting for a finance lease deal.

A: HERE IS THE ANSWER:

Q: How does the existence of leasehold improvements can affect the determination of the lease term?

A: Leasehold Improvements are referred to as any of the changes or improvements made to the rental…

Q: What is leveraged lease?

A: A leveraged lease could be a rent deed that's financed by a third-party financial institution with…

Q: leasing

A: Introduction: Leasing is defined as an agreement between two parties known as lessor & lessee…

Q: How does Leasing offer protection against the risk of declining asset values?

A: Leasing:    The term leasing defines that it is a process of renting a property to someone the…

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: What is guideline lease?

A: Guideline Lease:   A tax lease was drawn up under IRS models or "guidelines" to decide the…

Q: How does a leveraged lease differ from a nonleveraged lease?

A: A leveraged lease is an agreement that is partially financed by the third party creditor. In this…

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: What is the concept of sale-leaseback agreement?

A:

Q: True or false explain

A: A lease is a contractual agreement between the lessor and lessee. The owner is paid by the user…

Q: How does the company can benefit indirectly by leasing assets rather than buying?

A: Company can take benefit of leasing assets rather than buying assets due to many reasons: Leasing…

Q: What is a synthetic lease?

A: The synthetic lease is a type of arrangement wherein the Parent company creates a separate entity…

Q: Explain Lease-versus-Own Analysis?

A: Owning is the right of an entitlement to an asset by purchasing it while leasing is the contract by…

Q: Why allow the fair value option for financial assets and liabilities and not for, say, buildings or…

A:

Q: What is the difference between an “operating” and a “capital” lease? In easy terms please!

A: The criteria for defining the lease as a capital lease or operating lease   As per the notes issued…

Q: Clearly explain why the issue of lease capitalization has been controversial.

A: A lessee is a person or a company that obtains an asset for use, in exchange for lease rent;…

Q: lessee

A: Lease is a financial arrangement where the right to use the asset is given by the owner to another…

Q: Why the lease is considered a “short-term lease”?

A: Lease:   It is an agreement between an owner of an asset (Lessor) and a tenant (lessee) where the…

Q: Describe the qualitative and quantitative lease disclosure?

A:

Q: the term "corridor amor

A: Corridor amortization is an approach for amortizing the Accumulated OCI balance when it goes over…

Q: Define the term net advantage to leasing (NAL).

A: NAL It is the money that an entity or an individual saves from taking an asset on lease instead of…

Q: When can a lease create both an asset and a liability for the lessee?

A: Lease is an agreement between two persons in which one grants the right to another to use a…

Q: Why is the reporting of leases required? Justify your response.

A: A lease is an agreement where an asset is taken on rent and Lessor receives Lease rental in return.…

Q: Why is lease reporting required? Justification for your answer.

A: A lease is an arrangement in which an asset is rented out, and the Lessor gets a rental payment in…

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: Weigh-in the advantages and disadvantages of leasing over debt financing in acquiring long-term…

A: Long-term assets are assets that will benefit the organisation for more than a year, whether they…

Q: What are the criteria for classifying a lease as operating or capital? Why is there a difference…

A: Criteria for classifying a lease as operating or capital: There are five different types of leasing…

Q: Which are the important use of derivatives is to adjust exposure to different property types?

A: Derivatives is are financial instruments that has some underlying asset which determines the value…

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: What are capital lease?

A: The definition of a  lease is that "A  lease is a contract entitling a renter to the temporary use…

Q: Define sale-and-leaseback

A: sale-and-leaseback

Q: How does a seller financing differ from a land contract ?

A: In the real estate context, seller financing means the seller transfer the title to the buyer of the…

Q: Insurance value differs from market value in that? a) the value is only attributed to the…

A: Market value It is a price at which the asset will fetch in the market/ investment value community…

Q: What factors would tend to affect the value of a lease?

A: Lease is a contract between two parties in which one party lends its property or asset to the other…

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.