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:

Reconstruction

The period following the Civil War in the United States, from 1865 to 1877, aimed at rebuilding the Southern states and integrating formerly enslaved people into society.

U.S. Senate

One of the two chambers of the United States Congress, it is comprised of senators from each state, regardless of population, serving staggered six-year terms, and has unique powers including treaty ratification and impeachment trials.

Hiram Revels

The first African American to serve in the U.S. Senate, representing Mississippi in 1870-1871 during the Reconstruction era.

Blanche K. Bruce

Blanche K. Bruce was an African American politician who served as a U.S. Senator from Mississippi during the Reconstruction era, becoming the first African American to serve a full term in the Senate.