If an Asset Has a Positive Salvage of $1,000, Exactly

question 84

Multiple Choice

If an asset has a positive salvage of $1,000, exactly equal to UCC, then the lease analysis for an asset alone in its pool will show the following cash flows for that phenomenon.

• A)the salvage is a cost to leasing; there is no terminal loss or gain.
• B)the salvage is a cost of owning, the terminal loss is $1,000.
• C)salvage has no effect on leasing, since it belongs to the owner.
• D)the tax shelter for the terminal gain will be $1,000.

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Definitions:

Upward Appeal

A strategy of resolving disputes or making requests by escalating them to higher levels of authority within an organization.

Influence Strategy

The plans or approaches used by an individual or group to persuade or guide others' behaviors, decisions, or opinions.

Persuasion

The act or process of influencing someone's beliefs, attitudes, or actions through argument, reasoning, or appeal.

Logical Arguments

Coherent and reasoned statements or series of statements intended to demonstrate the truth or falsity of a specific proposition.