Which of the following variables would reduce the lease payment a lessor would charge:
A) Charging a damage deposit
B) Inclusion of maintenance and insurance
C) Asset is the only asset in its class
D) Asset becomes eligible for Investment Tax Credit (ITC)

Question

Quizplus · Accepted Answer

If the asset becomes eligible for Investment Tax Credit (ITC), it would reduce the cost of the asset for the lessor, which in turn reduces the lease payment. The other options might add some security or convenience for the lessor, but they wouldn't necessarily reduce the lease payment.

Which of the Following Variables Would Reduce the Lease Payment