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Sale price is more than fair value

This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.

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May 29, 2021 at 8:18 am #622113
stevenlino
Member
- Topics: 19
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Hello,
Please, in which practical cases can an asset be sold more than it’s fair value ?
I saw this in sales and lease back, where the excess of sale price is considered a loan.
May 29, 2021 at 5:39 pm #622209
Stephen Widberg
Keymaster
- Topics: 11
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In real life it would be very unusual.
A bank might buy something for more than FV but lease payments would presumably be very high indeed.
So, my feeling is that, outside the exam hall, it’s not something that happens much!
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