A Bona Fide Debt Cannot Arise on a Loan Between

question 112

True/False

A bona fide debt cannot arise on a loan between father and son.

---

Definitions:

Net Advantage To Leasing

The benefits a company realizes from leasing assets rather than purchasing them, considering cost savings, tax advantages, and flexibility.

Estimated Life

The expected duration or lifespan of an asset, affecting depreciation calculations and investment decisions.

CCA Class

Capital Cost Allowance Class; categories used in Canadian income tax that determine the depreciation rate for different types of assets for tax purposes.

Net Advantage To Leasing

The financial benefit that results when leasing an asset is more cost-effective than purchasing the asset outright.