Assume a Lessor and a Lessee Can Borrow at the Same

Assume a lessor and a lessee can borrow at the same rate and also pay taxes at the same rate. Given this, then a lease between these parties:

A) will be a loss to both parties.
B) benefits both parties by the same amount.
C) is a zero-sum game.
D) will be disallowed by the IRS.
E) will always benefit the lessor at the expense of the lessee.

Correct Answer:

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