The most important issue that makes it possible for both a lessor and lessee to gain from a financial lease arrangement is (aside from risk):
A)The lessee's better cash flow
B)The lessor's purchasing power for leased assets
C)The lessee's higher marginal tax rate
D)The lessor's higher marginal tax rate

Question

Quizplus · Accepted Answer

The lessor's higher marginal tax rate allows them to benefit more from tax deductions on depreciation, which can be passed on to the lessee in the form of lower lease payments.

The Most Important Issue That Makes It Possible for Both