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This commentary evaluates the implications of lease vs. buy decisions under varying depreciation conditions.

Implicit Factors in the Evaluation of Lease vs Buy Alternatives: A Comment.

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Comment analyzes lease and buy options in accounting, highlighting implications of depreciation differences.

This commentary evaluates the implications of lease vs. buy decisions under varying depreciation conditions.
Review of Chasteen's article from The Accounting Review
Analysis of lease and buy scenarios
Consideration of IRS depreciation guidelines
Leasing can be advantageous even if its implicit interest rate exceeds borrowing rate
Lease payments may align with IRS depreciation life for optimal tax efficiency
Example provided shows specific financial comparisons between leasing and purchasing

James D. Blum (1974) studied this question.

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