Which of the Following Statements Is FALSE

Multiple Choice

Which of the following statements is FALSE?

A) For a lease to be attractive to both the lessee and the lessor,the gains must come from some underlying economic benefits that the leasing arrangement provides.
B) With a true tax lease,the lessor replaces depreciation and interest tax deductions with a deduction for the lease payments.
C) Generally speaking,if the asset's tax depreciation deductions are more rapid than its lease payments,a true tax lease is advantageous if the lessor is in a higher tax bracket than the lessee.
D) A tax gain occurs if the lease shifts the more valuable deductions to the party with the higher tax rate.