Which of the Following Statements Regarding Leases and Taxes Is

question 14

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:

Time-Driven

A term related to activity-based costing that assigns costs based on the amount of time required to complete a task.

Resolving Queries

The process of addressing and clarifying doubts or questions that arise in any context, ensuring understanding or resolving issues.

Time-Driven

Pertaining to operations or processes that are initiated, executed, or measured based on time.

Activity-Based Costing

A method in accounting that assigns costs to products or services based on the activities and resources that go into producing them, aiming for more accurate costing.