Transportation firm A owns its fleet of trucks. Transportation firm B rents an identical fleet of trucks

Question:

Transportation firm A owns its fleet of trucks. Transportation firm B rents an identical fleet of trucks through a leasing contract. As long as the fleet of trucks is concerned:

a. Which firm has most likely the highest COGS and why?

b. Which firm most likely depreciates the most, and why?

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JAPHETH KOGEI

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