Which of the Following Statements Is FALSE

question 25

Multiple Choice

Which of the following statements is FALSE?

• A)For a lease to be attractive to both the lessee and the lessor,the gains must come from some underlying economic benefits that the leasing arrangement provides.
• B)With a true tax lease,the lessor replaces depreciation and interest tax deductions with a deduction for the lease payments.
• C)Generally speaking,if the asset's tax depreciation deductions are more rapid than its lease payments,a true tax lease is advantageous if the lessor is in a higher tax bracket than the lessee.
• D)A tax gain occurs if the lease shifts the more valuable deductions to the party with the higher tax rate.

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Definitions:

Null Hypothesis

A statement or idea that suggests there is no statistical significance or effect between certain observed phenomena or variables.

Wilcoxon Rank Sum Test

A nonparametric statistical test that compares two independent samples to assess whether their populations have the same distribution.

Height Centimeters

A measurement of how tall a person or object is, specified in centimeters.

Observations Rank

The process of assigning ordinal ranks to data points based on their value or position relative to other points in the dataset.