A Debtor Is Presumed to Be Insolvent on and During

question 18

Multiple Choice

A debtor is presumed to be insolvent on and during what number of days immediately preceding the date of the filing of a bankruptcy petition?

• A) 30
• B) 60
• C) 90
• D) 120

---

Definitions:

Operating Costs

Expenses associated with the day-to-day functions of a business.

Depreciation Tax Shield

A reduction in taxable income resulting from the ability to deduct depreciation expenses, thereby lowering the tax liability for a business.

CCA Deduction

Stands for Capital Cost Allowance deduction, a tax deduction in certain jurisdictions that allows businesses to deduct the depreciated value of capital assets.

Corporate Tax Rate

The tax rate imposed on the net income of a corporation by the government.