Q1-Leasing is likely to permit a firm to use more financial leverage than could be obtained with conventional debt

True

False

Q2-A lease that does not meet the tax guidelines is called a non-tax-oriented lease. For this type of lease, the lessee

a.all of these answers.

b.is the effective owner of the leased property.

c.can deduct only the interest portion of each lease payment.

d.can depreciate it for tax purposes.