A Lease with Which One of These Characteristics Would Not

question 34

Multiple Choice

A lease with which one of these characteristics would not be qualified by the IRS?

• A)Term of 25 years
• B)Early balloon payments
• C)Lessee option to purchase asset at fair market value at lease expiration
• D)No lease provision limiting the lessee's right to issue additional debt
• E)Lessee granted first option to meet a competing outside renewal offer

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Definitions:

Esse Est Percipi

A Latin phrase meaning "to be is to be perceived," associated with George Berkeley's idealist philosophy which argues that objects only exist to the extent that they are perceived.

Subjective Idealism

The view that nothing exists except ideas and minds. The eighteenth-century idealist George Berkeley held the extreme position of subjective idealism, which, simply summarized, insisted that “to be is to be perceived” (esse est percipi). According to Berkeley, it makes no sense to believe in the existence of anything that we cannot experience.

Western Metaphysical Tradition

A lineage of philosophical inquiry in the West that deals with fundamental questions of existence, reality, and knowledge.

Most Real

This term is likely to refer to the philosophical notion of ultimate reality or truth, the most fundamental and true nature of existence as opposed to appearances or perceptions.