The CRA Requires That Lease

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.