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.

---

Definitions:

Hue

A basic property of color, determined by the specific wavelength of light, perceived as the name of the color, such as blue, green, or red.

Binocular Cue

Visual information taken from both eyes that enables perception of depth, distance, and 3D structure of objects.

Convergence

The process or state of different elements coming together or merging towards a unified or common point.

Retinal Disparity

The slight difference in the visual images that each eye perceives because of the different angles in which each eye views the world.