A Direct Lease Is an Arrangement Which Is Designed To

question 140

Multiple Choice

A direct lease is an arrangement which is designed to:

• A) Help a firm finance a purchase directly from a manufacturer.
• B) Allow the seller of an asset to realize the tax benefits of continued ownership of that asset.
• C) Reduce costs for the user of an asset while creating profits for the owner of that asset.
• D) Allow the lessor to finance a large portion of the cost of the leased asset on a nonrecourse basis.
• E) Transfer title to an asset to a buyer for tax purposes when in fact ownership remains with the seller.

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