Jo Wall Is the CEO of Big Co

Jo Wall is the CEO of Big Co.and is considering whether to engage in a financial lease or to purchase a large capital asset.If Jo purchases the asset, the company will use debt financing.Which of the following accurately describes the similarities in the tax treatment of leasing and purchasing with debt?

A) Both methods allow for deductions that reduce taxable income.
B) The after-tax net present value of the two methods will usually be identical.
C) The timing of cash payments and tax savings is the same under both alternatives.
D) Capital cost allowance is always expensed for both alternatives.