Which of the Following Are Specific Tests That the Canada

question 92

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? 1.The lease term is equal to 75% or more of the economic life of the leased property.
2) 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.
3) 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:

Electronic Brainstorming

A creative group problem-solving technique that uses electronic devices to gather ideas from participants simultaneously and anonymously.

Traditional Brainstorming

A creative problem-solving technique that involves generating a large number of ideas in a group setting, without immediate criticism.

Piggybacking

The act of attaching or linking something to an already existing system or process for an additional benefit or gain.

Groupthinking

A psychological phenomenon where the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.