Typically Exempt from the Sales/use Tax Base Is the Purchase

question 12

True/False

Typically exempt from the sales/use tax base is the purchase of prescription medicines by an individual.

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Definitions:

Capital Lease

A capital lease is a lease agreement that is structured so that the lessee effectively becomes the owner of the asset for accounting purposes, usually for long-term assets.

Lease Liability

An obligation representing the present value of future lease payments a lessee is committed to make under a lease agreement.

Cost of Capital

The rate of return that a firm must earn on its project investments to maintain its market value and attract funds.