Carol has a closed-end lease agreement in which the lessor has estimated that the value of the leased car will be $10,000 at the end of the lease term. If Carol returns the car in good condition and under the mileage limit at the end of the lease, but the car is then worth only $9,000, Carol will A : not get her security deposit back as a penalty. B : have to pay the extra $1,000 in depreciation at that time. C : be able to walk away without any responsibility for the extra loss in value. D : receive a rebate of $1,000 from the lessor.

Carol has a closed-end lease agreement in which the lessor has estimated that the value of the leased car will be $10,000 at the end of the lease term. If Carol returns the car in good condition and under the mileage limit at the end of the lease, but the car is then worth only $9,000, Carol will A : not get her security deposit back as a penalty. B : have to pay the extra $1,000 in depreciation at that time. C : be able to walk away without any responsibility for the extra loss in value. D : receive a rebate of $1,000 from the lessor.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 40P

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