Question
If a sale-and-leaseback qualifies as a sale, how is the leaseback recorded by the seller-lessee?
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Answer
As a normal lease with an ROU asset and lease liability.
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Question
How is net investment in the lease measured for a sales-type lease?
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Answer
Present value of payments plus unguaranteed residual.
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Question
Why can a sale-and-leaseback fail sale accounting even if an asset is transferred?
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Answer
Control did not transfer to the buyer.
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Question
What is the key collectibility-related requirement for direct-financing lease classification?
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Answer
Collection must be probable.
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