Which of the following statements is not true? I) The lessee does not have to buy the equipment
II) The lessee is responsible for making the lease payments
III) The lease payments are not tax-deductible
IV) The lessee gives up the depreciation tax shield

Question

Quizplus · Accepted Answer

Statement III is not true. Lease payments are often tax-deductible, providing a potential tax benefit for the lessee. Statements I, II and IV are all true.

Which of the Following Statements Is Not True? I) the Lessee