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:

Observation

Observation involves carefully watching, listening, and noting the characteristics or behavior of a subject or phenomenon without direct interaction or manipulation.

Systematic Tests

Systematic tests are structured methods used to evaluate or measure specific characteristics, abilities, or processes in a consistent and standardized manner.

Hypotheses

Proposed explanations for a phenomenon, made as a starting point for further investigation, that can be tested by experimentation or observation.

Psychologists

Professionals who study cognitive, emotional, and social processes and behavior by observing, interpreting, and recording how individuals relate to one another and their environments.