Why is the cost of financing with a sale-leaseback essentially the same as the return from continuing to own?

Q: How is the revaluation surplus handled under the revaluation model?

A: The question is related to Revaluation model under IAS16 Property, Plant and Equipment. Under this…

Q: What distinguishes a capital investment from other investments?

A: Investments: It is the method by which an investor increases his value over some time for future…

Q: Explain what effect will an upward asset revaluation have on subsequent periods’ profits

A: The revaluation of assets means the change in the value of assets over a period of time this made…

Q: leasing

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

Q: What are the economic benefits of leasing vs ownership of assets?

A: MEANING:- Leasing of Assets - The leasing of assets refers when the owner gives the right to use…

Q: Prepaid Rent is always classified as a long-term asset. O True O False

A: Prepaid rent is when a tenant pays rent in advance, typically for a future month, and it's recorded…

Q: what will be the Market Leasing Assumptions with Renewal Probabilities?

A: Market leasing assumption is a very important assumption which is used in calculating the value of…

Q: What is the actual cost of capital to the borrower?

A: The cost of capital to the borrower is the weighted average cost of capital from all sources of…

Q: Describe some economic factors that might provide an advantageto leasing.

A: Before we discuss the economic factors favoring leasing, let's understand the meaning of leasing. As…

Q: What factors would tend to make leasing more desirable than owning?

A: Lease: Leases are agreements in which the proprietor of the asset permits another party to utilize…

Q: How is amortization different from depreciation?

A: a. Depreciation - Depreciation is charged in the assets to record use, wear and tear, passage of…