A production payment retained in a leasing transaction is treated under IRC section 636 as an installment bonus by the lessee as paid out of production by the lessee to the lessor and is treated as ordinary, depletable income by the lessor as received by the lessor from the lessee.  Explain

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Heres the breakdown of how a production payment retained in a leasing transaction is treated under IRC section 636 For the Lessee the one who leases t... View the full answer