Which of the Following Leases Is NOT Likely to Be

question 44

Multiple Choice

Which of the following leases is NOT likely to be viewed as a lease from the perspective of the Internal Revenue Service?

• A) A 20-year lease for an asset having an economic life estimated to be 40 years
• B) A lease offering a renewal option based on the asset's remaining value at the time of the renewal
• C) A lease providing for a purchase option at the end of the lease period for a nominal sum
• D) A leveraged lease in which the lessor contributes 40% equity

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Definitions:

Self-Fulfilling Prophecy

A belief or expectation that influences behavior in a way that causes the belief to become true.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors in judging others' behavior.

Confirmation Bias

The inclination to seek out, understand, prefer, and remember information in a manner that reaffirms one’s already held beliefs or theories.

External Attribution

The process of assigning the cause of behavior to some situation or event outside a person's control rather than to some internal characteristic.