The reason for a company prefer to select a sale and lease back transaction. Introduction: Lease: An asset can be leased or bought. A lease in a contractual agreement made between two parties; lessor and lessee. The agreement explains the usage of asset for a particular time by lessee. In return, lessor gets periodical payments for the use of asset.

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Chapter 27, Problem 8CRCT

Summary Introduction

To determine: The reason for a company prefer to select a sale and lease back transaction.

Introduction:

Lease: An asset can be leased or bought. A lease in a contractual agreement made between two parties; lessor and lessee. The agreement explains the usage of asset for a particular time by lessee. In return, lessor gets periodical payments for the use of asset.

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