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Leasing has become the number one method of external financing by U.S. companies. Reasons include each of the following except: Multiple Choice Tax advantages.
Leasing has become the number one method of external financing by U.S. companies. Reasons include each of the following except: Multiple Choice Tax advantages. Extended use of the asset Protection against obsolescence. Lower upfront cash needed to use an asset. In an operating lease in which the asset's economic life and lease term are different: 2 Multiple Choice The lessee amortizes the leased asset over the term of the lease at a straight-line amount. The lessee amortizes the leased asset at an amount that increases each period. The lessor amortizes the leased asset over the term of the lease. The lessee amortizes the asset over its economic life. 3 If a finance lease contains a bargain purchase option, the lessee should amortize the leased asset: Multiple Choice Over the term of the lease. Without reference to the economic life of the asset Over the economic life of the asset. O Without reference to the term of the lease.
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