Assume a Lessor and a Lessee Can Borrow at the Same

question 25

Multiple Choice

Assume a lessor and a lessee can borrow at the same rate and also pay taxes at the same rate. Given this, then a lease between these parties:

• A) will be a loss to both parties.
• B) benefits both parties by the same amount.
• C) is a zero-sum game.
• D) will be disallowed by the IRS.
• E) will always benefit the lessor at the expense of the lessee.