Match List I with List II:

List I 

List II 

A.

Finance Lease

I.

The lessee and the owner of the equipment are two different entities

B.

Operating Lease

II.

Lessee sells an asset for cash to a prospective lessor and then leases back the same assets.

C.

Sale and Lease back

III.

The lessor does not transfer all the risk and rewards incidental to the ownership of the assets.

D.

Direct lease

IV.

The lessor transfers substantially all the risks and rewards incidental to the ownership of the assets to the lessee.

Choose the correct answer from the options given below:

1
A- IV, B- III, C- II, D- I
2
A- IV, B- III, C- I, D- II
3
A- I, B- II, C- III, D-IV
4
A- I, B- II, C- IV, D- III

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