ACCT 3303 | CAPITAL LEASE vs. OPERATING LEASE | | Dr. Serge Ryno ACCT 3303 December 2, 2011 Capital Lease vs. Operating Lease Firms often choose to lease long-term assets rather than buy them for a variety of reasons including the tax benefits that are greater to the lessor than the lessees and leases offer more flexibility in terms of adjusting to changes in technology and capacity needs. Lease payments create the same kind of obligation that interest payments on debt create, and
Words: 1490 - Pages: 6
LEASE OR FINANCE?? In today’s competitive economy, a vehicle is no longer considered a luxury anymore, but rather a necessity. There are not very many cities in the U.S. where you can live without car. I live in Orlando, Florida and dependable transportation is a mandatory expense. If you want to buy a new car, the cheapest way to buy a car is to pay cash for it. By paying cash you will avoid any finance charges. However, there are not very many people have thirty to fifty thousand dollars to spend
Words: 1443 - Pages: 6
To Lease or Purchase? May 2, 2011 ACC/400 Peter Ioveno To Lease or Purchase? It is important to know when it is a good time to purchase items or lease items, as an individual and in the business world. If you purchase an item at the wrong time, it could easily put a company as risk for financial hard times. The following will detail some important factors to review when purchasing or leasing is an option. The Differences between Leasing and Purchasing Both leasing and purchasing has
Words: 1043 - Pages: 5
Leasing vs. Purchasing Richard Brown, Katie Martin, Ronald Williams, Dewayne Magee FIN/370 March 30, 2015 Thomas Rietta Lease vs. Purchase To lease… or to purchase… that is the question. Does one choose to bite the bullet and put forth the expense to completely own a piece of equipment, or is paying a company to use said piece of equipment the proper course of action. Webster’s New College Dictionary defines a lease as “a contract by which one party (landlord, or lesser)
Words: 684 - Pages: 3
Vocabulary Triple-Net Full Payout Leases Operating Leases Capital Leases Purchase Options Traditional Leasing vs. Venture Leasing Venture leases structured to support start-ups Traditional leases often require a substantial deposit Traditional leases are often limited to a small subset of assets Venture leases are often a mix of debt and equity Hi-Tech Firms Have Large Equipment Needs Lowers a Firm's Equity Capital Needs Leasing Is a Low Cost Source
Words: 269 - Pages: 2
Lease versus Purchase Paper FIN/370 Lease versus Purchase Paper There are many factors to when one is considering buying or leasing equipment, building or automobile. And the most important primary factor is, should one lease or buy? Lease means to rent the equipment, building or automobile with the option to own the property. While purchasing is to own the equipment, automobile or building. One has to consider how long one is keeping the asset of property, and which
Words: 609 - Pages: 3
Burlington Northern Railroad Company: Equipment Leasing To: Rob McKenney Vice President & Treasurer BNRR From: Paul Weyandt Director of Equipment Finance BNRR Date: July 15, 1990 Subject: Lease Vs Buy Option for Auto Racks Equipment This memo is in regard to the recent proposal of leasing or buying the bi-level and tri-level Auto Rack equipment for Burlington Northern Railroad Company. As indicated before, this equipment is a great investment for our company
Words: 1129 - Pages: 5
This paper will compare and contrast lease versus purchase options, examine debt and equity financing, provide examples for each source of financing, and identify which alternative capital structure is more advantageous. Lease vs. Purchase Options: Compare and Contrast In business the decision to lease or purchase is a critical element of strategic management. Equally important is the way in which the asset will be used. Operating leases are most often used by organizations looking
Words: 618 - Pages: 3
11224053 MODINA vs. COURT OF APPEALS (317 SCRA 696) FACTS: The parcel of land under the name of Ramon Chiang is in questioned since Mr. Chiang claims that the land has already been sold by his wife to him. Mr. Chiang in turn sells this land to Modina which are all evidenced by deed of sale. Modina then filed Complaint for Recovery of Possession with Damages before the Regional Trial Court of Iloilo City. On the other hand, Merlinda, the wife of Ramon, presented also a complaint which is
Words: 1181 - Pages: 5
John Smith worked on a case for more than two years and received a lump sum payment of $300,000 for his work plus an additional $25,000 for pre-paid expenses. He wants to know how this money will be treated for tax purposes. John’s company is what is known as an LLC or Limited Liability Company, and for U.S. federal income tax purposes, an LLC is treated by default as a pass-through entity. Since John is the only person in the company, the LLC is treated as a “disregarded entity” for tax purposes
Words: 1672 - Pages: 7
