1. Having the bank purchase the asset and then lease it to the customer is most often beneficial when the customer is
A) in a higher tax bracket than the bank
B) in the same tax bracket as the bank
C) in a lower tax bracket than the bank
D) a better credit risk than the bank.
E) a poorer credit risk than the bank.
2. A bank's PLL is
A) the difference between interest income and interest expense.
B) the difference between noninterest income and noninterest expense.
C) a loss reserve charge to earnings for loans that may not be collectible.
D) a contra asset account used to protect equity if loans are written off.