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:

Multiple Choice

• will be a loss to both parties.

• benefits both parties by the same amount.

• is a zero-sum game.

• will be disallowed by the IRS.

• will always benefit the lessor at the expense of the lessee.

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 parties: Multiple Choice will be a loss to both parties. benefits both parties by the same amount. is a zero-sum game. will be disallowed by the IRS