From the lessee's viewpoint, which of the following is not an advantage of leasing?
A) If a lease is recorded as a capital lease, the calculated rate of return on the total assets ratio and the current ratio will be improved.
B) A lease agreement may reduce the risk of obsolescence for a lessee.
C) In many cases, an asset may be leased without requiring the lessee to make a substantial down payment.
D) The lessee may be able to claim larger tax deductions through leasing the asset than if the asset were purchased.
A
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Fill in the blank(s) with the appropriate word(s).