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true or false A payment in termination of a lease may be received by a lessee...

true or false

A payment in termination of a lease may be received by a lessee or a lessor and the tax treatment would be the same in either case.

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False. When a lease is terminated, the asset reverts back to the lessor and the lesse has make the final payment to the lessor. The tax treatment would also differ in both their cases. For the lessor, the lease payments are a form of income and fpr the lessee, the interest portion of the lease payment (in case of capital lease) represents expeses.

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