I need the answers to these questions. Could you please help me with this? Thanks in advance.

T/F Questions:

1) In general, the cost of the asset over the life of the lease is lower than if the lessee purchases the asset. T/F

2) When a company purchases equipment by issuing a long-term note, the interest element of the payment is tax-deductible. However, if the company leases equipment, the entire lease payment may be deductible. T/F

3) A substitution right is when a lessor has the ability to replace the identified asset. If the lessor has a substantive right to substitution, then an identified asset does not exist. T/F

MC Questions:

1) For a lease to exist, it must meet two criteria;

a) (1) there must be an identified asset and (2) the lessee must have the right to control that asset over the lease term

b) (1) there must be an identified asset and (2) and the lessor must have the right to control that asset over the lease term

c) (1) there must be a substitute alternative asset and (2) and the lessee must have the right to control that asset over the lease term

d) (1) there must be a substitute alternative asset and (2) the lessor must have the right to control that asset over the lease term

2) In order for substitution rights to exist, which of the following conditions must be met?

a) The lessor of an asset only has one asset available to fulfill the contract terms and the contract includes an embedded aspect.

b) The lessor has the practical ability at the inception of the contract to substitute alternative assets and the lessor will benefit economically from the exercise of its right to substitute the asset.

c) The lessee has the practical ability at the inception of the contract to substitute alternative assets and the lessor will benefit economically from the exercise of its right to substitute the asset.

d) The lessee will benefit economically from the substitution if the benefits exceed the cost of substitution.

3) A lessee can obtain economic benefits from the asset's use directly or indirectly in many ways including the following_____.

a) using the asset b) holding the asset c) subleasing the asset d) all of the above