What effect would cancellation clause have on lesse analysis

Reference no: EM131525358

Question: 1. Suppose there were no IRS restrictions on what constituted a valid lease. Explain, in a manner that a legislator might understand, why some restrictions should be imposed. Illustrate your answer with numbers.

2. In our Anderson Company example, we assumed that the lease could not be cancelled. What effect would a cancellation clause have on the lessee's analysis? On the lessor's analysis?

Reference no: EM131525358

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