Which of the following would NOT be considered an advantage that an investor might consider under a sale-leaseback of land?
A)The sale-leaseback in effect provides 100% financing on the land
B)Lease payments are tax deductible
C)The sale-leaseback provides the same depreciation deductibility with a smaller equity investment
D)The land may appreciate over the holding period

Question

Quizplus · Accepted Answer

The appreciation of the land is not an advantage that would be considered under a sale-leaseback as it is not directly related to the transaction. The other three choices are all potential advantages of a sale-leaseback.

Which of the Following Would NOT Be Considered an Advantage