1. Which answer is not a Federal Income Tax Rule?

The Lease term may not exceed 80% of the equipments useful life.
Intent of the parties plays no part to determine true Lease status.
Only facts at time of closing will prevail.
It is not a Lease if the purchase option and the residual are the same.
Must be for a business or other income-producing purpose.

2. Which answer is not acceptable for a legal Lease?

A fair market value purchase option is always acceptable.
A fixed price purchase option is acceptable if it is for the reasonably predictable fair market value.
The Lease term can not exceed 80% of the equipments useful life.
The Lease can not have a bargain renewal.
The Lessor may not impose a burden on the return conditions.

3. Which is the best definition of personal property?

Consumer goods
Life of one year or greater, and not real estate
Business property for resale
Depreciated over 36 months
When attached to real estate

4. Which is not an accounting classification for the Lessee?

Operating Lease
Capital Lease where asset depreciated over actual useful life
Capital Lease where asset depreciated over Lease term
Sales type Lease

5. In a tax lease, the Lessor's yield is composed of:

The Lessor's book income for GAAP
Rents, residual and tax benefits
Rents and tax benefits
Tax benefits and residual

6. Which one of the following is not a part of documenting a Lease between the Lessee and the Lessor?

Vendor Invoice
Purchase order
Security Agreement
Acceptance agreement
Lease agreement

7. To be effective a purchase money security interest, a UCC-1 Financing Statement, must be filed within twenty (20) days after...

Lessee's Possession of the first piece of equipment
Date of transaction
Lessee's signing the legal documents
Signing the acceptance

8. The asset class life is...

The IRS determination of the use of the equipment
The UCC bracket for filing
The longest term you can lease the equipment
The comptroller's regulation on bank lease terms

9. Which of the following is not a type of Lease?

Capital
True
Operating
Super
TRAC

10. A sale-lease-back may have to consider...

Sales tax on new rentals
True ownership prior to purchase
Recapture income tax for Lessee
Capital gain, for Lessee on sale
All of the above