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One Key Reason Why the IRS Is Concerned About the Structure

Question 16

Multiple Choice

One key reason why the IRS is concerned about the structure of lease contracts is because:


A) firms that lease generally pay no taxes.
B) leasing usually leads to bankruptcy.
C) leases can be set up solely to avoid taxes.
D) leasing leads to off-balance-sheet-financing.
E) lease payments can never be deducted as a business expense.

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