Which of the Following Statements Regarding Leases and Taxes Is

Multiple Choice

Which of the following statements regarding leases and taxes is FALSE?

A) In a non-tax lease,the lessee can deduct the interest portion of the lease payments as an interest expense.
B) In a true tax lease,the lease payments are treated as revenue for the lessor.
C) In a true tax lease,the lessee receives the depreciation deductions associated with the ownership of the asset.
D) The IRS separates leases into two broad categories: true tax leases and non-tax leases.