Question

While making the leasing decision, the cost of leasing an asset must be compared with the ________.

• A. cost of owning the same
• B. cost of selling the same
• C. cost of renting the same
• D. none of the above

Answer 1

The correct option is A cost of owning the same

While making the leasing decision, the cost of leasing an asset must be compared with the cost of owning the same.Lease financing does not provide finance diluting the ownership of the business.Lease rentals paid by the lessee are deductible for computing taxable profits.