Advantages of leasing from the lessee's perspective include all of the following EXCEPT
A) capability of effectively depreciating land.
B) ability to avoid restrictive covenants that are normally part of a long-term loan.
C) benefit of the salvage value at the end of the term of the lease reverts to the lessor.
D) 100 percent financing.

Question

Quizplus · Accepted Answer

The salvage value at the end of the lease term typically reverts to the lessor, not the lessee. Therefore, the benefit of salvage value is not an advantage from the lessee's perspective. A, B, and D are advantages of leasing from the lessee's perspective.

Advantages of Leasing from the Lessee's Perspective Include All of the Following