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 deb: used ta finance the asset leased. A lease in which the lessee is the effective owner of the leased property, can depreciate the asset under lease for tax purposes and can deduct only the interest portion of the lease payment is called Anusha is a lawyer at Leaseonic Corp. She is evaluating the company's current lease agreements. Anusha recently hired an intern, Michael, and assigned him the task of listing the provisions for tax guidelines related to lease contracts. Anusha needs to check and find mistakes in the provisions that Michoelisted. Of the following points outlined in Michael's document, which are correct? Check all that apply. The IR.S puts restrictions on lease ferms so that the lease transaction can allow companies to increase rapid payments that are tax deductible. The lease term can be extended to an unlimited term using extension and renewals at a fixed rental rate. The tessee fas the option of buying the equipment at the expiraton of the tease contract at its fair market value. At the end of the lease, the remaining useful life of the equipment must be more than or equal to 1 year. The residual vatue of an equipment after expiration of the lease should be at least 20% without adjusting for inflation. If a lease purchase option conveys an improvident bargain upon the lessee, the lessee may be subject to upon the sale of the 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 deb: used ta finance the asset leased. A lease in which the lessee is the effective owner of the leased property, can depreciate the asset under lease for tax purposes and can deduct only the interest portion of the lease payment is called Anusha is a lawyer at Leaseonic Corp. She is evaluating the company's current lease agreements. Anusha recently hired an intern, Michael, and assigned him the task of listing the provisions for tax guidelines related to lease contracts. Anusha needs to check and find mistakes in the provisions that Michoelisted. Of the following points outlined in Michael's document, which are correct? Check all that apply. The IR.S puts restrictions on lease ferms so that the lease transaction can allow companies to increase rapid payments that are tax deductible. The lease term can be extended to an unlimited term using extension and renewals at a fixed rental rate. The tessee fas the option of buying the equipment at the expiraton of the tease contract at its fair market value. At the end of the lease, the remaining useful life of the equipment must be more than or equal to 1 year. The residual vatue of an equipment after expiration of the lease should be at least 20% without adjusting for inflation. If a lease purchase option conveys an improvident bargain upon the lessee, the lessee may be subject to upon the sale of the
