In general,if the asset's CCA deductions are ________ its lease payments,there are tax ________ from a true tax lease if the lessor is in a lower tax bracket than the lessee.
A) more rapid than; gains
B) slower than; losses
C) slower than; gains
D) equal to; losses

Question

Quizplus · Accepted Answer

If the asset's CCA deductions are slower than its lease payments, there are tax gains from a true tax lease if the lessor is in a lower tax bracket than the lessee. This is because the lessor can claim a larger portion of the CCA deductions and pass on the tax savings to the lessee in the form of lower lease payments.

In General,if the Asset's CCA Deductions Are ________ Its Lease