In a(n) ____, the lessor receives the entire accelerated depreciation tax shield while making a relatively small equity investment.
A) operating lease
B) capital lease
C) leveraged lease
D) term lease

Question

Quizplus · Accepted Answer

In a leveraged lease, the lessor borrows a significant portion of the funds needed to purchase the asset, allowing for a smaller equity investment. The lessor then receives the accelerated depreciation tax shield, as well as other tax benefits, throughout the lease term. This type of lease is often used for large, expensive assets such as aircraft or heavy machinery.

In A(n) ____, the Lessor Receives the Entire Accelerated Depreciation