A Lessor Finds a Lease Attractive from a Tax Viewpoint

question 52

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

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Definitions:

Visual Acuity

The clarity or sharpness of vision, typically measured as the ability to discern letters or numbers at a given distance according to a fixed standard.

Long-Term Potentiation (LTP)

A long-lasting enhancement in signal transmission between two neurons that results from stimulating them synchronously, believed to be a cellular mechanism underlying learning and memory.

Postsynaptic Neuron

The neuron located after the synaptic gap that receives a neurotransmitter signal from a presynaptic neuron in neuronal communication.

Sympathetic Activation

The part of the nervous system that increases alertness, mobilizes energy, and prepares the body for action.