The lessee in a financial lease bears the most of the same risks and rewards as ownership except:
A)He doesn't know how large his lease payments are
B)He has no tax shelter for his cash outflows
C)He has no access to capital gain from an extraordinary salvage value
D)He can cancel his obligations to a lessor with 30 days' notice

Question

Quizplus · Accepted Answer

In a financial lease, the lessee does not benefit from capital gains due to extraordinary salvage value, as the ownership and residual value benefits remain with the lessor.

The Lessee in a Financial Lease Bears the Most of the Same