07-01-2010, 05:12 PM
Thanks dear.
I want to discuss here that a company taken a car on lease for 1,000,000 (fair value).
100,000 was the security deposit.
As per lease agreement, the company has option to purchase the car against the security deposit of 100,000 (very low price compared to market) at the end of the lease term of 3 years or may get back its security deposit and car will be surrendered to lessor.
This option of purchasing is excercised almost by all the lessees.
My understanding is that the value of conveyance will be taken as 100,000 after the end of lease term instead of 1,000,000 as the company has acquired the car against 100,000 after the end of lease.
Plz comment.
Regards,
*
I want to discuss here that a company taken a car on lease for 1,000,000 (fair value).
100,000 was the security deposit.
As per lease agreement, the company has option to purchase the car against the security deposit of 100,000 (very low price compared to market) at the end of the lease term of 3 years or may get back its security deposit and car will be surrendered to lessor.
This option of purchasing is excercised almost by all the lessees.
My understanding is that the value of conveyance will be taken as 100,000 after the end of lease term instead of 1,000,000 as the company has acquired the car against 100,000 after the end of lease.
Plz comment.
Regards,
*
