mcq

Good evening

which of the following is potentially a benefit to the lessee if they lease as opposed to buy

a. avoiding tax exhaustion
b. attracting lease customers that may not have been otherwise possiblle
c. exploiting low cost of capital
d. potential future scrap proceeds

the correct answer is A.

and this was the one i rejected with absolute conviction!! …. if i am going to lease an asset, i will be taking tax relief which means i will be adding to the tax exhaustion….

i chose C.

pls explain.. thank u