Which of the following is a disadvantage of leasing from a lessee's perspective?
A) capability of effectively depreciating land
B) ability to avoid restrictive covenants that are normally part of a long-term loan
C) benefit of the salvage value at the end of the term of the lease reverts to the lessor
D) 100 percent debt financing

Question

Quizplus · Accepted Answer

The disadvantage of leasing from a lessee's perspective is that the benefit of the salvage value at the end of the term of the lease reverts to the lessor. This means that the lessee does not get any value from the asset at the end of the lease term.

Which of the Following Is a Disadvantage of Leasing from a Lessee's