Which of the following statements regarding leases and taxes is FALSE?
A) In a nontax 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 nontax leases.
Answer: C
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In ________, marketers bid in a continuous auction on search terms that serve as a proxy for the consumer's product or consumption interests
A) paid searches B) pop-up advertising C) display advertising D) banner marketing E) micro-advertising
HBR Accounting hired Denise, a CPA, to prepare tax returns. Which statement is correct?
a. Denise is a gratuitous agent and has a duty not to commit gross negligence. b. Denise is an agent and has a duty not to commit ordinary negligence. c. Denise, as a CPA, is an agent with special skills. She is held to a higher duty than ordinary negligence. d. Denise, as a CPA, is an agent with special skills. She is held to a lower standard than ordinary negligence.
Safeco's current assets total to $20 million versus $10 million of current liabilities, while Risco's current assets are $10 million versus $20 million of current liabilities. Both firms would like to "window dress" their end-of-year financial statements, and to do so they tentatively plan to borrow $10 million on a short-term basis and to then hold the borrowed funds in their cash accounts. Which of the statements below best describes the results of these transactions?
A. The transactions would improve Safeco's financial strength as measured by its current ratio but lower Risco's current ratio. B. The transactions would lower Safeco's financial strength as measured by its current ratio but raise Risco's current ratio. C. The transactions would have no effect on the firms' financial strength as measured by their current ratios. D. The transactions would lower both firms' financial strength as measured by their current ratios. E. The transactions would improve both firms' financial strength as measured by their current ratios.
Which of the following is an area of career opportunities in managerial finance?
A) investment B) real estate and insurance C) capital expenditures management D) personal financial planning