The purchase of assets or other goods for substantially less than the fair market value. A bargain purchase can be made when the vendor is in liquidation or is otherwise financially distressed.
Basis is an amount usually representing the taxpayer's cost in acquiring an asset. It is crucial for various tax purposes including computation of gain or loss on the sale or exchange of the asset and depreciation with respect to the asset.
An innocent purchaser is an individual or entity that buys an asset without knowledge of any defect in the title or property.
Investing activities, as required by Financial Reporting Standard (FRS) 1, show the cash flows related to the acquisition or disposal of the organization's long-term assets.
Investment costs are the expenditures incurred when an individual or organization allocates money to acquire investments or assets, often with the anticipation of generating returns over time.
A leveraged lease is a lease agreement that involves a third-party lender in addition to the lessor and lessee. This structure is commonly used in financing large capital assets.
A lump-sum purchase involves the acquisition of two or more assets for one consolidated price, with the acquisition cost allocated to each asset based on their relative fair market values.
