If the lessor borrows most of the purchase price of a leased asset, the lease is called a

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A lease where the lessor borrows most of the purchase price of the asset is known as a leveraged lease. In a leveraged lease, the lessor borrows a significant portion of the purchase price and the asset serves as security for the loan. The lease payments made by the lessee are used by the lessor to pay off the loan, and the lessor retains ownership of the asset during the lease term.

If the Lessor Borrows Most of the Purchase Price of a Leased