Which of the following is not a benefit of leveraged leases?

Question

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The primary benefits of leveraged leases include the lender receiving principal and interest payments, the lessor having lease payments available to service the loan, and the lessor putting up only a portion of the asset purchase price while receiving all the tax benefits of ownership. The statement that the lessee receives the leased object at a higher lease payment due to tax benefits received by the lessor does not represent a benefit of leveraged leases; instead, it suggests a potential cost to the lessee, not a benefit.

Which of the Following Is Not a Benefit of Leveraged