Which of the Following Are Specific Tests That the Canada

question 4

Multiple Choice

Which of the following are specific tests that the Canada Revenue Agency will apply to determine if a particular lease meets the definition of a capital lease? The lease term is equal to 75% or more of the economic life of the leased property.
The present value of the minimum lease payments is equal to 70% or more of the fair value of the leased property at the inception of the lease.
Provisions are made such that ownership of the leased property is transferred to the lessee at the end of the lease term.

• A)1 only
• B)1 and 2
• C)1 and 3
• D)2 and 3

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Definitions:

Due Process

A constitutional principle that requires the government to respect all legal rights that are owed to a person, ensuring fair treatment through the judicial system.

Equal Protection

A legal principle, under the Fourteenth Amendment, that requires states to treat all individuals within its jurisdiction with equal application of the law.

Superfund

A United States federal government program designed to fund the cleanup of sites contaminated with hazardous substances and pollutants.

Toxic Waste Sites

Locations where hazardous waste is stored, treated, or disposed of, posing risks to human health and the environment.