Use the following statements to answer this question:
A) I and II are correct.
B) I and II are incorrect.
C) I is correct and II is incorrect.
D) I is incorrect and II is correct.
I.Leverage leasing does not provide the same benefits to the lessor in Canada as it does in the U.S.
II.Amortizing the asset on the lessor's balance sheet is a major benefit for financial lease revenue.

Question

Quizplus · Accepted Answer

Statement I is correct, as leverage leasing is not as advantageous for lessors in Canada as it is in the US. This is because the tax benefits that leverage leasing provides are not as significant in Canada, due to the country's lower corporate tax rates.
Statement II is incorrect, as financial lease revenue is typically recognized on a straight-line basis rather than by amortizing the asset on the lessor's balance sheet.

Use the Following Statements to Answer This Question