Which of the following is false about a sale and leaseback arrangement?
A) The lessee obtains the use of an asset not previously owned.
B) The lessee sells an asset to a financial institution, which then leases the asset back to the lessee.
C) The lessor purchases the equipment.
D) The lessor is permitted to deduct CCA on the leased assets for income tax purposes.

Question

Quizplus · Accepted Answer

In a sale and leaseback arrangement, the lessee originally owns the asset and sells it to a lessor, then leases it back, so the lessee does not obtain the use of an asset not previously owned.

Which of the Following Is False About a Sale and Leaseback