A Lease Will Be Treated as a Non-Tax Lease If

question 29

Multiple Choice

A lease will be treated as a non-tax lease if it satisfies any of the following conditions,EXCEPT:

• A)the property may be acquired at the fair market value of the asset at the time when the option may be exercised.
• B)some portion of the lease payments is specifically designated as interest or its equivalent.
• C)the lessee receives ownership of the asset on completion of all lease payments.
• D)the total amount that the lessee is required to pay for a relatively short period of use constitutes an inordinately large proportion of the total value of the asset.

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Definitions:

Trade Barriers

Regulations or policies implemented by a country to restrict or control international trade and protect domestic industries.

IACs

International Advisory Committees, which are groups of experts from various countries providing advice and guidance on global issues or projects.

DVCs

This abbreviation can stand for "Dynamic Voltage and Frequency Scaling," an energy-saving technique in computing, but in economic terms, NO.

Infrastructure

The interconnected network of large-scale capital goods (such as roads, sewers, electrical grids, railways, ports, and the Internet) needed to operate a technologically advanced economy.