The Reason the IRS Is Most Concerned About Lease Contracts

question 3

Multiple Choice

The reason the IRS is most concerned about lease contracts is:

• A)firms that lease generally pay no taxes.
• B)that leasing usually leads to bankruptcy.
• C)that leases can be set up solely to avoid taxes.
• D)because leasing leads to off-balance-sheet-financing.
• E)All of the above.

---

Definitions:

Simplify

The process of reducing an expression to its most basic form.

Evaluate

To determine the worth of a given expression.

Simplify

To reduce a mathematical expression to its simplest form.

Simplify

To alter a mathematical expression or equation to make it easier to understand or work with, often by reducing it to its simplest form.