The city of Oakland sold some buildings and used the proceeds to improve its financial position.The city then leased the buildings back in order to continue to use these facilities.This is an example of:

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Quizplus · Accepted Answer

The scenario described is a classic example of a sale and leaseback arrangement, where the seller of an asset (in this case, the buildings) leases it back from the buyer (in this case, the entity that bought the buildings from the city). This allows the city to receive cash upfront from the sale while still being able to use the buildings for their intended purposes. A fully amortized lease involves regular payments for the use of an asset, while an operating lease is typically short-term and does not involve transfer of ownership.

The City of Oakland Sold Some Buildings and Used the Proceeds