The CRA Requires That Lease

question 34

Multiple Choice

The CRA requires that lease:

• A) Terms stipulate that the lessee gains title to the leased asset at the end of the lease term.
• B) Agreements provide for balloon lease payments within the first year of a multi-year lease.
• C) Payments exceed the normal depreciation expense on an asset during the early years of the asset's life.
• D) Agreements have a legitimate business purpose other than tax avoidance.
• E) Terms extend through the entire economic life of an asset and be based on fair market value.

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Definitions:

PCA

Patient-Controlled Analgesia, a method of pain management that allows the patient to control their medicine intake.

Premedicated

The administration of medication before a medical procedure or surgery to prevent or mitigate symptoms.

Maintenance Medication

Medication prescribed for chronic conditions, taken on a regular basis to manage symptoms and prevent flare-ups.

Morphine

A potent opioid analgesic drug used to relieve severe pain.