Capital Leasing Is Mutually Advantageous to Lessor and Lessee When

Multiple Choice

Capital leasing is mutually advantageous to lessor and lessee when

A) when the lessee only needs the asset for a fraction of its useful life.
B) when the lessee does not want to have additional debt on the balance sheet.
C) when the lessee has a higher taxrate than the lessor.
D) the lessor has a higher tax rate than the lessee.