27: XYZ Company acquires a land and building through a rental agreement requiring it to pay $40,000 a year for ten years. At the end of ten years, XYZ Company can purchase the land and building for $5,000. XYZ Company uses the land and building as part of its business enterprise. Question 28 options: (A) XYZ Company can take a $40,000 a year deduction for the rents so long as it can show that the rents are ordinary and necessary expenses paid or incurred in the tax year in carrying on a trade or business (B) XYZ Company can take a $40,000 a year deduction for the rents so long as it can show that it is not taking title in the building (C) XYZ Company cannot take a $40,000 a year deduction for the rents because it has equity in the building. This is a disguised sale. (D) XYZ Company cannot take the deduction because it is not an expense (E) C and D but not A and B