Which of the Following Statements Is False

question 46

Multiple Choice

Which of the following statements is false?

• A) For a lease to be attractive to both the lessee and the lessor, the gains must come from some underlying economic benefits that the leasing arrangement provides.
• B) With a true tax lease, the lessor replaces depreciation and interest tax deductions with a deduction for the lease payments.
• C) Generally speaking, if the asset's tax depreciation deductions are more rapid than its lease payments, a true tax lease is advantageous if the lessor is in a higher tax bracket than the lessee.
• D) A tax gain occurs if the lease shifts the more valuable deductions to the party with the higher tax rate.

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Definitions:

Negative Connotations

Associations with a word, phrase, or concept that evoke negative emotions or perceptions.

Word Choices

Refers to the selection of words in speech or writing, crucial for effective communication and conveying the desired tone.

Positive Response

An affirmative or favorable answer, reaction, or feedback.

Prospecting Letter

A letter sent to potential customers or clients with the goal of introducing one’s services or products and generating new business.