The correct answer is: D. All of the above
Lease charges are not necessarily lower than rental charges for the same period. In fact, lease charges can be higher than rental charges, especially if the lease includes a maintenance and repair agreement. Additionally, lease payments are not always tax deductible. The tax deductibility of lease payments depends on a number of factors, including the type of lease and the use of the leased property.
Insurance, maintenance, and other expenses are not always included in the rental charge. In some cases, the renter may be responsible for these expenses. Additionally, the renter may be responsible for paying a security deposit.
Here is a brief explanation of each option:
- Option A: Lease charges are lower than rental charges for the same period and are also tax deductable.
This statement is not always true. Lease charges can be higher than rental charges, especially if the lease includes a maintenance and repair agreement. Additionally, the tax deductibility of lease payments depends on a number of factors, including the type of lease and the use of the leased property.
- Option B: Lease may be written to show higher payments is early years to reflect the decline in value of the system
This statement is true. Lease payments are typically higher in the early years of the lease to reflect the decline in value of the leased property.
- Option C: Insurance, maintenance and other expenses are included in the rental charge
This statement is not always true. In some cases, the renter may be responsible for these expenses. Additionally, the renter may be responsible for paying a security deposit.
- Option D: All of the above
This statement is true. All of the above statements are not always true.