Sale-Leaseback approach In the sale-leaseback approach, the owner of the leased asset sells it and immediately leases it back from the new owner. In this transaction, seller (lessee) receives cash from the sale of the asset and also pays periodic rent payments to the buyer (Lessor) to retain the use of asset. To State: if the transaction to be accounted as sale-leaseback and reason thereto.

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Chapter 15, Problem 15.30Q

To determine

Sale-Leaseback approach

In the sale-leaseback approach, the owner of the leased asset sells it and immediately leases it back from the new owner. In this transaction, seller (lessee) receives cash from the sale of the asset and also pays periodic rent payments to the buyer (Lessor) to retain the use of asset.

To State: if the transaction to be accounted as sale-leaseback and reason thereto.

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