According to the CRA, for a Lease to Be Valid

question 171

True/False

According to the CRA, for a lease to be valid for tax purposes, then the lease must have a bargain purchase option, transferring the residual value to the lessee.

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Definitions:

Reservation Price

The maximum price that a consumer is willing to pay for a product, beyond which they would choose not to purchase it.

Market Price

The market price is the current price at which an asset or service can be bought or sold, determined by the forces of supply and demand in the market.

Reservation Price

The maximum amount a consumer is willing to pay for a good or service, beyond which they will not purchase the product.

Price Discrimination

The strategy of selling the same product to different customers at different prices based on factors like willingness to pay, not costs.