Quincy owns a metal fabricating company.He is desperately in need of working capital in order to carry out several large orders.Therefore he sells his heavy stamping equipment to Beneficial Leasing Inc.in a five-year purchase lease plan.This arrangement amounts to

Question

Quizplus · Accepted Answer

This is a classic example of a sale and leaseback, as Quincy is selling his heavy stamping equipment and then leasing it back from Beneficial Leasing Inc. This allows him to access working capital while still retaining the use of the equipment.

Quincy Owns a Metal Fabricating Company