Answered: In a sale-leaseback transaction the…

In a sale-leaseback transaction the owner of an asset sells it and immediately leases it back from the new owner. This dual transaction should be viewed as a single borrowing transaction. Why?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter12: Liabilities: Off-balance-sheet Financing, Retirement Benefits, And Income Taxes

Section: Chapter Questions

Problem 2Q

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In a sale-leaseback transaction the owner of an asset sells it and immediately leases it back from the new owner. This dual transaction should be viewed as a single borrowing transaction. Why?

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