40. Which of the following statements is/are TRUE regarding leasing transactions

Question

40. Which of the following statements is/are TRUE regarding leasing transactions? CIRCLE ALL THAT APPLY (2 points) The finance company purchases the asset, such as a jet, railroad car or computer, and signs a lease contract with a business customer who wishes to use that asset. a. b. Since the finance company owns the asset, the finance company is able to c. Business customers are attracted to leasing because it allows them to use the d. The business customer who leases the asset does not "take title" to the asset, recognize depreciation on the asset in its tax return which helps reduce its tax bill. leased asset without having to spend as much of its own capital up-front. 8 8 which enables the finance company to repossess the asset more easily if the customer fails to make its lease payments since the title to the asset does not have to be transferred.

Explanation / Answer

THe answer is - ALL parts are true. circel all parts.

because A leasing transaction is a transaction that a business or individual take assets on a lease for the period of time on an agreement. thus there it cannot be title . financial company can use the assets for tax deduction by showing expenses on depreciation on assets .

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