Assume That a Piece of Leased Equipment Has a Relatively

question 34

True/False

Assume that a piece of leased equipment has a relatively high expected residual value.From the lessee's viewpoint,it might be better to own the asset rather than lease it because with a high residual value the lessee will likely face a higher lease rate.

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Definitions:

Tax Considerations

Factors related to taxation that must be taken into account when making investment or business decisions.

Vendor

A person or company offering something for sale, especially a trader in the goods market.

Terms

Conditions and stipulations specified in a contract or agreement.

Net Fixed Assets

The value of a company's permanent assets less any depreciation that has been accounted for.