Normal repairs to the machine are also a revenue expenditure, since the expenditure does not make the machine more than it was, nor does it extend the machine’s useful life. As a result, normal repairs will also be reported on the income statement as an expense in the accounting period when the repair is made. Given that £10,000 of the ...
In addition, a long-term lease is not as inviting to raiders as undervalued real estate. In a sale-leaseback agreement a company sells its property to raise cash and then leases it back from the buyer. With the sale of a commercial property, one of the major concerns surrounds the potential loss of control over decision-making. The seller or ...
A company’s book value of debt on its balance sheet represents all outstanding debt currently acquiring interest. When you’re considering investing in a company or loaning it money, the book value of debt is one of the things to look at. It is the sum of Long-term debt, Current portion of long-term debt, and notes payable in the ...
Additionally, this type of lease typically spans most of the useful life of the asset. In a capital lease agreement, the lessee, the party receiving the asset or property, assumes both the risks and benefits of ownership. The lessor allows a lessee to use the property in exchange for periodic rental payments. A leasing arrangement is defined ...
Leased vehicles must also be maintained by the lessee with regular service and upkeep throughout the term of the agreement. These conditions must be met because the vehicle will be returned to the auto dealer at the end of the lease. The vehicle would then go on the market as a used car for sale. It is possible that a lessee might want to ...
As long as you’re aware, it’s fine to make a conscious decision to spend more on your cars than might be necessary. Through local dealerships, Mazda offers foreign residents a special financing program to purchase or lease a Mazda vehicle. If you’re a short-term visitor to the U.S., you’ll need a driver’s license ...