Statements

True

False

Lease contracts in which residual values are very high are likely to have lower costs for leasing.

Lessees in general are in relatively higher tax brackets, whereas lessors tend to be in lower tax brackets.

If a company has a covenant that restricts the firm to take on more debt, the company could increase its leverage by leasing additional assets.

If the tax laws changed to allow companies to depreciate their equipment over a shorter period of time, the lessor would get larger tax credits and faster depreciation write$-$offs.