Purchase Solution

Sale and Lease Back

Not what you're looking for?

Ask Custom Question

What is Sale and Lease Back? Further, what are the accounting entries for Sale and Lease Back in case of finance lease?

Purchase this Solution

Solution Summary

This solution defines the concept of 'sale and lease back' and explains what its accounting entries would be in the case of a finance lease.

Solution Preview

Accounting Entries for Sale and Lease Back

Sale and lease back is a financing transaction between the lessee and lessor, where a person in need of funding sells their asset and then leases it back so that the asset remains with the seller and they enjoy its use through leasing.

Finance Lease

The following is the criteria for the classification of a finance lease:

• Transfer of ownership to the lessee by the end of the lease term.
• The lessee has the option to purchase the asset at a price that ...

Purchase this Solution

Free BrainMass Quizzes
Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.