Which One of the Following Statements Is Correct Concerning Taxes

question 42

Multiple Choice

Which one of the following statements is correct concerning taxes and leasing?

• A)Tax-deferral is a legitimate reason for leasing.
• B)The lessee should be the party with the higher tax bracket.
• C)Generally speaking, lessors tend to benefit from leases while lessees do not.
• D)If a firm has significant net operating losses, it should be the lessor in a lease.
• E)You should only lease an asset if the lease will be fully amortized.

---

Definitions:

Absorb Nutrients

The process by which organisms take up and assimilate nutrients from food into their body for growth, energy, and maintenance.

Planning Horizon

A Planning Horizon is the future time period over which forecasts, plans, or projections are made, affecting decision-making processes in business or personal contexts.

Aggregate Planning

A marketing activity that aims to balance supply and demand in the long-term, integrating major functions like sales, manufacturing, and finance.

Years

Units of time equal to 365 days (or 366 days in a leap year), used as a measure of time passing.