1
NEW CLFP CLASS
REVIEW PRACTICE QUESTIONS WITH
VERIFIED ANSWERS TESTED AND
APPROVED!!!
At risk rules -- ANSWER--Those provisions in the Internal Revenue
Code, which require that a party seeking to claim certain benefits
under the tax code, such as interest deduction and depreciation must
be "at risk" for certain, specified amounts in a relationship to such
desired tax benefits
Section 38 Property -- ANSWER--Any asset on which depreciation
may be taken, as defined by the IRS
Operating Lease -- ANSWER--From an accounting perspective, any
lease that has the characteristics of a usage lease and also fails to meet
any of the criteria set forth under FASB 13 for a capital lease. Also
known as a service lease.
, 2
Leveraged Lease -- ANSWER--Any of the specific types of leases
involving at a minimum, a lesser, a lessor, and a funding source from
whom the lessor borrows a significant portion of the cost of
equipment and takes an equity position in the remainder.
True lease/tax lease -- ANSWER--A lease for which tax purposes,
fails to meet all of the tests for a conditional sales contract under IRS
Revenue Ruling 55540 and therefore entitles the lessor to qualify for
the tax benefits of ownership and the leases to claim the entire amount
of the lease rental as a tax deduction.
ITC -- ANSWER--Investment Tax Credit A credit against taxes
otherwise due from a taxpayer under the Internal Revenue Code. The
credit is generally computed as the percentage of costs of certain
assets. ( (Se IRC Section 38 and 46-50
Tax reform act of 1986 -- ANSWER--Effectively repealed the ITC for
newly acquired property.
net lease:triple net lease -- ANSWER--A lease in which all of the
, 3
costs in connection with the use of property such as
maintenance,insurance, and property taxes are paid for separately by
the lesser and are not included in the rental payment to the lessor.
Keys to maintaining your vendor relationship -- ANSWER--1.
Underpromise and overdeliver
2. Know what product you are selling
3. Understand all sales have an emotional component
4. Learn and understand the meaning of advocacy
5. Identify and address the agenda of the vendor and their customer
thereby adopting that agenda as your own
FASB 13 (1976) -- ANSWER--If meets any of criteria, will be capital
lease
1.Automatic transfer of title
2. Bargain purchase option
3.non-cancellable term is greater than 75% of economic life of asset
NEW CLFP CLASS
REVIEW PRACTICE QUESTIONS WITH
VERIFIED ANSWERS TESTED AND
APPROVED!!!
At risk rules -- ANSWER--Those provisions in the Internal Revenue
Code, which require that a party seeking to claim certain benefits
under the tax code, such as interest deduction and depreciation must
be "at risk" for certain, specified amounts in a relationship to such
desired tax benefits
Section 38 Property -- ANSWER--Any asset on which depreciation
may be taken, as defined by the IRS
Operating Lease -- ANSWER--From an accounting perspective, any
lease that has the characteristics of a usage lease and also fails to meet
any of the criteria set forth under FASB 13 for a capital lease. Also
known as a service lease.
, 2
Leveraged Lease -- ANSWER--Any of the specific types of leases
involving at a minimum, a lesser, a lessor, and a funding source from
whom the lessor borrows a significant portion of the cost of
equipment and takes an equity position in the remainder.
True lease/tax lease -- ANSWER--A lease for which tax purposes,
fails to meet all of the tests for a conditional sales contract under IRS
Revenue Ruling 55540 and therefore entitles the lessor to qualify for
the tax benefits of ownership and the leases to claim the entire amount
of the lease rental as a tax deduction.
ITC -- ANSWER--Investment Tax Credit A credit against taxes
otherwise due from a taxpayer under the Internal Revenue Code. The
credit is generally computed as the percentage of costs of certain
assets. ( (Se IRC Section 38 and 46-50
Tax reform act of 1986 -- ANSWER--Effectively repealed the ITC for
newly acquired property.
net lease:triple net lease -- ANSWER--A lease in which all of the
, 3
costs in connection with the use of property such as
maintenance,insurance, and property taxes are paid for separately by
the lesser and are not included in the rental payment to the lessor.
Keys to maintaining your vendor relationship -- ANSWER--1.
Underpromise and overdeliver
2. Know what product you are selling
3. Understand all sales have an emotional component
4. Learn and understand the meaning of advocacy
5. Identify and address the agenda of the vendor and their customer
thereby adopting that agenda as your own
FASB 13 (1976) -- ANSWER--If meets any of criteria, will be capital
lease
1.Automatic transfer of title
2. Bargain purchase option
3.non-cancellable term is greater than 75% of economic life of asset
