Joe Genius of ABC Corporation Is Considering Whether to Lease

Joe Genius of ABC Corporation is considering whether to lease or purchase a large capital asset. If Joe purchases the asset, he will use debt financing. Which of the following accurately describes the similarities in the tax treatment of leasing and purchasing with debt?

A) Both methods allow for a deduction which reduces taxable income.
B) Cash payments and tax savings will usually occur simultaneously for both alternatives.
C) Capital cost allowance is always expensed for both alternatives.
D) The after-tax net present value will always be identical for both alternatives.