Which of the following statements is FALSE?
A) If the lease is deemed to be a true lease, the firm is assumed to have effective ownership of the asset and the asset is protected against seizure.
B) Although the legal ownership of the asset resides with the lessor, in a non-tax lease the lessee receives the depreciation deductions.
C) The treatment of leased property in bankruptcy will depend on whether the lease is classified as a security interest or a true lease by the bankruptcy judge.
D) In a non-tax lease, the interest portion of the lease payment is interest income for the lessor.
A
Explanation: A) If the lease is deemed to be a security interest, the firm is assumed to have effective ownership of the asset and the asset is protected against seizure.
You might also like to view...
Which is not true regarding process analysis tools?
A. Process mapping is another name for time-function mapping. B. Time-function mapping extends value-stream mapping to include suppliers. C. A process chart is different than a allow chart. D. Service blueprinting is designed to help ficus on the customer interaction part of the process.
On March 1 a commodity's spot price is $60 and its August futures price is $59 . On July 1 the spot price is $64 and the August futures price is $63.50
A company entered into futures contracts on March 1 to hedge its purchase of the commodity on July 1 . It closed out its position on July 1 . What is the effective price (after taking account of hedging) paid by the company? A. $59.50 B. $60.50 C. $61.50 D. $63.50