A fiNancial Lease in Which the Lessor Borrows a Substantial

question 230

Multiple Choice

A financial lease in which the lessor borrows a substantial fraction of the cost of the leased asset on a nonrecourse basis is called a(n) ___________.

• A) Leveraged lease.
• B) Sale and leaseback.
• C) Operating lease.
• D) Tax-oriented lease.
• E) Straight lease.

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Definitions:

Adoption Credit

A tax credit offered to adoptive parents to cover some of the costs associated with the legal adoption of a child.

Special Rules

Regulations or provisions that apply in specific situations, often modifying or exempting certain transactions or entities from the general rules of tax law.

AGI

The total income earned by an individual in a year minus specific deductions allowed by the tax code, recalculated for emphasis as foundational in the determination of taxable income.

Qualifying Children

Dependents who meet specific IRS criteria regarding relationship, age, residency, and support, impacting eligibility for certain tax benefits.