Which of the following statements about a recapture is correct?
A) In a lease-or-purchase analysis, a recapture will be a cost of purchasing
B) In a lease-or-purchase analysis, a recapture will be a cost of neither purchasing nor leasing
C) In a lease-or-purchase analysis, a recapture will be a cost of both purchasing and leasing
D) In a lease-or-purchase analysis, a recapture will be a cost of leasing

Question

Quizplus · Accepted Answer

In a lease-or-purchase analysis, recapture refers to the recovery of depreciation or investment tax credits when an asset is sold. This is typically a cost associated with purchasing, not leasing.

Which of the Following Statements About a Recapture Is Correct