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 a tax-oriented lease a tax-oriented lease a leveraged lease 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 Which of the following points in the document submitted by Michael are correct? Check all that apply. Leaseonic Corporation Provisions of the Tax Guidelines The lease term can be extended to an unlimited term using extension and renewals at a fixed rental rate. The lease agreement can restrict the use of the equipment so that only its lessee or a related party can use the asset after the expiration of the term. At the end of the lease, the remaining useful life of the equipment must be more than or equal to 1 year. 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 residual value 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 asset. forfeiture CCA recapture a loss limits 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 a tax-oriented lease a tax-oriented lease a leveraged lease 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 Which of the following points in the document submitted by Michael are correct? Check all that apply. Leaseonic Corporation Provisions of the Tax Guidelines The lease term can be extended to an unlimited term using extension and renewals at a fixed rental rate. The lease agreement can restrict the use of the equipment so that only its lessee or a related party can use the asset after the expiration of the term. At the end of the lease, the remaining useful life of the equipment must be more than or equal to 1 year. 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 residual value 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 asset. forfeiture CCA recapture a loss limits