of financing the acquisition of capital equipment where the user (lessee) of the equipment selects the equipment and is allowed to use the equipment during the period of the lease by paying a predetermined lease rental. The legal ownership continues to vest with the leasing company (lessor). The main difference between the hire purchase and leasing relates to the ownership and accounting treatment. While in the case of lease the ownership of the equipment always remains with the leasing company
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expense/items. Such expenses do not reflect any change on the cash held in bank. However‚ such expenses do have an effect on the income as follows; Depreciation on revenue earning equipment and property and equipment is regarded as a non-cash item since depreciation is an expense which is being incurred against the usage of equipment due to wear and tear thereby declining its total value over its useful life and hence has nothing to do with any change in the cash. Similarly‚ the amortization of other intangible
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arrangement where the owner (lessor) of an equipment transfers the right to use the equipment to the user (lessee) for an agreed period of time in return of rental. • At the end of the lease period the asset reverts back to lessor unless there is a provision for the renewal of the contract or there is a provision for transfer of ownership to lessee. • Today leasing or equipment leasing includes leasing of plant and machinery‚ office equipments‚ automobiles‚ ships and aircrafts.
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are: The Equipment Group and CIMCO Refrigeration. The Equipment Group serves an estimated $5 billion markets and owns one of the world’s largest CAT dealerships in terms of revenue and geographic territory‚ which comprises of 36 branches in Canada. The dealerships sell Caterpillar products and specialize in industrial machines. Toromont Industries Ltd. also owns Battlefield- The CAT Rental Store which specializes in mobile equipment rental and compact equipment. There are 37 CAT Rental Stores.
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that will accommodate up to 45 trainees. The executive director has prepared a budget that will give a breakdown of all the cost that will be involved in the seminar. Proposed Seminar Budget 1. Conference room rental $175.00 $175.00 2. Audiovisual equipment Rental $75.00 3. 4 presenters @ $500.00 $2‚000.00 4. 45 workbooks @ $15.00 $675.00 5. 45 lunches @ 10.00 $540.00 6. 45 coffees @ $3.50 $158.00 Subtotal
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2. Research (CIMS) China International Marine Containers (Group) Ltd. (CIMC)‚ fixes the mission to be customers’ partner for modern transportation. CIMC is dedicated to manufacturing and supplying containers‚ trailers‚ tank equipment and airport facilities. CIMC was founded in January 1980 in Shenzhen and has been listed in Shenzhen Stock Exchange since 1994. Today‚ the main shareholders are COSCO and China Merchants Holdings. With 20 years continual development‚ CIMC has become
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After evaluating Hertz‚ we recommend that Carlyle Group purchase Hertz for at least $2.3 billion. If they want to achieve a 20% return‚ they should offer $5.2 billion. A higher offer price is recommended due to the competitive nature of the dual-track process. The dual-track process has created a rather interesting environment for potential investors. Not only are investors competing with each other‚ but if the case that a deal is not worked out then Ford has made provisions for the company to be
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to 300% of actual commodity material costs. 5. Proposed “Equipment Rental Rates” on equipment owned by the Subcontractor may be 20% to 50% more than actual competitive third -party equipment rental rates for comparable equipment. 6. The GMP subcontractor may end up charging 2 or 3 times the fair market value (FMV) of a piece of subcontractor owned rental equipment unless the contract establishes a limit on “aggregate” bare rental charges.
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LESSON-15 LEASE FINANCING‚ HIRE PURCHASE AND FACTORING Rekha Rani STRUCTURE 15.0 15.1 15.2 15.3 15.4 15.5 Introduction Objectives Concept of Lease Financing Meaning of Lease Financing Importance of Lease Financing Types of Lease Agreements 15.5.1 Financial lease 15.5.2 Operating lease 15.5.3 Sale and lease back 15.5.4 Leveraged leasing 15.5.5 Direct leasing Advantages of leasing Leasing in India Concept & Meaning of Hire purchase Difference between Lease Financing and Hire Purchase NSIC & Hire
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organized a business called A.R Rentals. Mr. Adnan’s new business was able to begin operations immediately by purchasing the assets and taking over the location of Ammar Rentals‚ an equipment rental business. Below are the transactions for the month of March 2013: Date 2013 March 01 Transactions Mr. Adnan deposited Rs. 900‚000 cash in the name of his business - A. R Rentals in the bank. March 01 Paid Rs. 90‚000 to Mr. Irfan as three month’s advance rent for the rental yard and originally recorded
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