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What is the vat treatment on a sale and leaseback transaction for the lessee?
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What is a sale and leaseback?
A leasing package wherein the lessee sells presently-owned equipment to the lessor to convert fixed asset into cash with the lessor allowing the lessee to retain the full use of the property for a fee over a specified period of time.
What are the advantages to a company of doing a sale and leaseback of their buldings?
One of the advantages to a company doing a sale and leaseback of their buildings is to raise extra capital. Another benefit is being able to invest this capital in their company.
What is the difference between a sales-type lease and a direct financing lease?
Direct Lease A leasing package wherein the lessor buys a specified equipment from the supplier and leases the same to the lessee. Sale and Leaseback A leasing package wherein the lessee sells presently-owned equipment to the lessor to convert fixed asset into cash with the lessor allowing the lessee to retain the full use of the property for a fee over a specified period of time.
Advantages and disadvantages of sale and leaseback?
Advantage: Large cash injection. Disadvantage: In the long term it is more expensive.
What are the some advantages and disadvantages of sale and leaseback?
Advantage - You get the money back straight away. Disadvantage If you buy a leaseback property, you are buying it as an investment. The idea behind leaseback is that you buy a property and are guaranteed* rental income year round for that property, normally for France, up to about 4%pa. You then have the option of using the property for holidays at the cost of reduced return.
What is an affidavit of sale?
An affidavit of sale or bill of sale is a document that records a transaction. All parties involved in the transaction must sign this document.
What is meant by nature of a transaction?
The phrase 'the nature of the transaction' refers to the kind of transaction that occurred. Some examples are a credit sale, a return, and a cash sale.
How do you account for sale of company stock by owner?
capital transaction
What is the purpose of the sale day book?
helps in recording transaction
What is sale or return?
A sale is the transaction taken place by two parties exchanging money or services for products or services. A return is bringing that transaction and products back to the party it was "sold" by for money to be refunded. A sale is the transaction taken place by two parties exchanging money or services for products or services. A return is bringing that transaction and products back to the party it was "sold" by for money to be refunded.
Is point of sale hyphenated?
Point of sale is a business term used to describe when the retail transaction is complete. The phrase "point of sale" is not hyphenated.
What is the source document for recording a cash sale transaction?
original tax invoice
