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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