Hi,
Co. is entering into a S&L of MV. The S&L is deemed a sale and is at market terms.
The carrying value of the vehicle is $43k, proceeds [FV] is $34k, PV of lease payments is $16k [lease liability to be booked].
Is it possible for the ROUA to be greater than the LL [using the prior CV = $43k x $16k / $34k] = $26k or is the ROUA to be capped at LL?
Also, the contra occurs whereby the CWDV is $0. In this case is the ROUA = LL?
Thanks
Sale and Leaseback
Re: Sale and Leaseback
how much is the selling price ?