Question

Lessor companies are frequently ________. in a low tax bracket subject to a higher borrowing rate...


Lessor companies are frequently ________.
in a low tax bracket
subject to a higher borrowing rate
subject to a lower borrowing rate
less affected by changes in technology
in a high tax bracket

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Answer #1

Generally speaking, lessor companies are frequently considered in the higher tax bracket. This is because as they own the assets, they would have already received the benefits of tax shelter due to accelerated depreciation in the early years of the project.

So Answer is in a high tax bracket.

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