A lessee and lessor are trying to negotiate a mutually beneficial lease payment but are finding that
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Question:
A lessee and lessor are trying to negotiate a mutually beneficial lease payment but are finding that the only lease payment they will both agree to results in both parties having an NAL of zero.
Which of the following statements must be true? Select all that apply.
A. the lessee and lessor face different tax rates.
B. the lessee and lessor face the same tax rate.
C. the lessee and lessor face different interest rates.
D. there are no transaction costs.
E. the lessee and lessor face the same interest rate.
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