A direct lease is an arrangement which is designed to:
A) Help a firm finance a purchase directly from a manufacturer.
B) Allow the seller of an asset to realize the tax benefits of continued ownership of that asset.
C) Reduce costs for the user of an asset while creating profits for the owner of that asset.
D) Allow the lessor to finance a large portion of the cost of the leased asset on a nonrecourse basis.
E) Transfer title to an asset to a buyer for tax purposes when in fact ownership remains with the seller.
Correct Answer:
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