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TriStar Industries Was Recently Denied the Deduction of the Life

Question 9

Multiple Choice

TriStar Industries was recently denied the deduction of the life insurance premiums on the life insurance policies of its key executives on the annual tax return. Which of the following general limitations to business profit determination best describes the reason for the Canada Revenue Agency's decision?


A) insurance proceeds exemption
B) exempt-income test
C) reserve test
D) personal-expense test

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