A company CFO had mentioned that, given the industry we belong to, owning the asset is...
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A company CFO had mentioned that, given the industry we belong to, owning the asset is a better method than
leasing, owning gives us accelerated depreciation and hence better tax savings, because, based on the type of asset we
are using, other than depreciation benefits we are not finding any differentiation between ownership and lease.
Comment on the validity of the statement. (10 Marks)
Answer rating: 100% (QA)
The CFO s statement highlights the advantages of owning assets particularly in terms of accelerated depreciation and potential tax savings However the validity of this statement depends on various facView the full answer