Leasing versus borrowing [L023.3] This is a challenge problem. Jack and Jill Company (JJC) has a tax rate of 30 per cent. It is looking at obtaining a new laser scanner that identifies potential melanomas. The cost is $50 000 but JJC can lease it for $3521 a month, with payments made in advance for the next tax year. Alternatively, it can borrow at 8.24 per cent per year with payments of $4042 a month in arrears. The lease has a residual of $10000 when the salvage value will be $12000. Because of the special nature of the equipment the Commissioner of Taxation will allow monthly depreciation of $3000. Should JJC lease? cabade IlO23.31