Which of the Following Statements Regarding Leases and Taxes Is

question 39

Multiple Choice

Which of the following statements regarding leases and taxes is false?

• A) In a non-tax lease, the lessee can deduct the interest portion of the lease payments as an interest expense.
• B) In a true tax lease, the lease payments are treated as revenue for the lessor.
• C) In a true tax lease, the lessee receives the depreciation deductions associated with the ownership of the asset.
• D) The IRS separates leases into two broad categories: true tax leases and non-tax leases.

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Definitions:

Negative Reinforcement

A behavior modification process where the likelihood of a behavior is increased by removing or avoiding a negative outcome.

Positive Reinforcement

The process of encouraging or establishing a pattern of behavior by offering rewards when the behavior is exhibited.

Neutral

Describes a state or position of impartiality, or not favoring any side in a conflict, competition, or a situation requiring a choice.

Relearn

The process of learning information, skills, or behaviors again, which were previously learned but may have been forgotten or lost.