A Lessor Finds a Lease Attractive from a Tax Viewpoint

question 32

Multiple Choice

A lessor finds a lease attractive from a tax viewpoint because he:

• A)need not pay taxes on his assets so long as they are leased out.
• B)gets a tax deduction from his lease payment.
• C)can use the lease payment to lower his taxable income.
• D)can use the capital cost allowance tax shield from ownership.

---

Definitions:

Freckles

Small, pigmented spots on the skin, typically appearing as a result of exposure to sunlight and predominantly seen in people with lighter skin.

Diameter

A straight line passing from side to side through the center of a body or figure, especially a circle or sphere, representing the longest distance across it.

Friction Ridges

The raised portions of the epidermis on the fingers and thumbs, palms, soles, and toes, creating distinctive patterns used for identification in forensic analysis.

Reticular Layer

The deeper layer of the dermis in the skin, consisting of dense irregular connective tissue that provides strength and elasticity.