2. Leases and taxes Leasing is a very lucrative source of financing for certain companies' needs, including corporations and small- to medium-sized businesses. This is because the Internal Revenue Service (IRS) allows the lessee to deduct the lease payments and the lessor can deduct interest payments on any debt used to finance the asset leased. To be able to deduct lease payments, IRS guidelines must be followed. An agreement that meets IRS requirements to qualify as a genuine lease is called Emma is a lawyer at Leaseonic Corp. She is evaluating the company's current lease agreements. Emma recently hired an intern, Michael, and assigned him the task of listing the provisions for tax guidelines related to lease contracts. Emma needs to check and find mistakes in the provisions that Michael listed. of the following points outlined in Michael's document, which are correct? Check all that apply. The leased equipment should not be a "limited use" property, which means that the equipment should be available for use by anyone at the end of the lease. The lease term can be extended to an unlimited term using extension and renewals at a fixed rental rate. The residual value of an equipment after expiration of the lease should be at least 20% without adjusting for inflation. At the end of the lease, the remaining useful life of the equipment must be more than or equal to 1 year. The IRS puts restrictions on lease terms so that the lease transaction can allow companies to increase rapid payments that are tax deductible. deductions that can provide greater tax deductions than One beneficial feature of a structured lease agreement is otherwise might be available if CCA was being claimed on a purchase option