Asked by Oscar Zamora on Jun 18, 2024
Verified
Under a sale and leaseback arrangement,the seller of the leased property is the lessee and the buyer is the lessor.
Sale And Leaseback
A transaction where a company sells an asset and leases it back from the buyer, providing liquidity while retaining the asset's use.
Lessee
A lessee is a person or entity who rents land or property from a lessor under the terms of a lease agreement.
Lessor
The party in a lease agreement who owns the asset and grants its use to another party (the lessee) for a specified period in exchange for payment.
- Differentiate between distinct lease kinds (synthetic, leveraged, sale and leaseback) and identify their properties.
Verified Answer
AC
Ashley CasillasJun 19, 2024
Final Answer :
True
Explanation :
In a sale and leaseback arrangement, the seller of the property becomes the lessee and the buyer becomes the lessor, as the buyer purchases the property and then leases it back to the original owner.
Learning Objectives
- Differentiate between distinct lease kinds (synthetic, leveraged, sale and leaseback) and identify their properties.