Answer: Option [B]
The correct answer is Machinery and capital equipment on hire. Leasing provides opportunities to use available money to operate assets that can make more money over time. There are many distinct differences between buying and leasing, regardless if such a transaction or agreement applies to property, machinery, equipment or other assets. The difference lies in that a lease is conceptually very similar to the principle of “borrowing.” The ownership of the leased property (be it land, equipment, merchandise, or etc.) is not transferred under the terms of the lease agreement.