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XYX Realty LLC executes a ten - year lease, making monthly payments in excess of market rent. At the end of the ten years, XYX

XYX Realty LLC executes a ten-year lease, making monthly payments in excess of market rent. At the end of the ten years, XYX has an option to buy the property for $1. Discuss the potential problem with this type of lease. What are the tax effects to the lessee? To the lessor?

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