Evaluate the benefit in light of fasb standard

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1. From a tax perspective, what primary requirements in a lease transaction must be met in order for the IRS to consider the transaction a genuine lease? Why is a favorable IRS ruling regarding the tax status of a lease important to both the lessor and the lessee?

2. One advantage that has often been claimed of lease financing is that it creates "off-balance sheet" financing. Evaluate this benefit in light of FASB Standard No. 13.

Reference no: EM131334943

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