Which of the Following Statements Is FALSE

question 35

Multiple Choice

Which of the following statements is FALSE?

• A)If the lease is deemed to be a true lease,the firm is assumed to have effective ownership of the asset and the asset is protected against seizure.
• B)Although the legal ownership of the asset resides with the lessor,in a non-tax lease the lessee receives the depreciation deductions.
• C)The treatment of leased property in bankruptcy will depend on whether the lease is classified as a security interest or a true lease by the bankruptcy judge.
• D)In a non-tax lease,the interest portion of the lease payment is interest income for the lessor.