The CRA Requires That Lease

question 19

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:

Self-Serving

Behaviors or attitudes that prioritize one's own interests, benefits, or welfare above those of others.

Gain Resources

To obtain additional resources or assets that improve one’s condition or position.

Stalking

Repeated, unwelcome intrusions that create concern for personal safety and fear in the target.

Verbal Aggression

The use of communication to attack another person’s self-concept.