If a Lessor Has a Tax Bracket Much Higher Than

question 80

True/False

If a lessor has a tax bracket much higher than a lessee's, and the CCA tax shields occur early in the lease, there is little incentive for a lessor and lessee to construct a lease to their mutual after-tax benefit.

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Definitions:

Awareness

The state or ability to perceive, feel, or be conscious of events, objects, or sensory patterns.

Self-Regulation

The ability of an individual or organization to monitor and control their behaviors, actions, or thoughts to achieve certain goals.

Discrepancy

A lack of compatibility or uniformity that leads to a difference between two or more things, such as expectations versus reality.

Vicarious Learning

The method of acquiring knowledge by watching the behaviors of others and the results of those behaviors, instead of by personal experience.