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 he purchases the asset,he will use debt financing.Which of the following is a true statement describing a similarity in the tax treatment of leasing and purchasing with debt?

A) Both allow for a tax deduction.
B) Principal payments are deductible for both alternatives.
C) Cash payments and tax savings will usually occur simultaneously for both alternatives.
D) Capital cost allowance is always calculated for both alternatives.