The Lost Depreciation Tax Shield Used in Lease Versus Purchase

The lost depreciation tax shield used in lease versus purchase analysis applies only when the lessee firm:

A) commits to purchasing the leased asset at the end of the lease term.
B) depreciates all of its assets on a straight-line basis.
C) commits to a lease term of three years or longer.
D) originally owned the equipment that it now plans to lease.
E) has sufficient taxable income to offset that tax shield.