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TriStar Industries Was Recently Denied the Deduction of the Life

Question 1

Multiple Choice

TriStar Industries was recently denied the deduction of the life insurance premiums on the life insurance policies of its key executives on its 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) personal-expense test
C) reserve test
D) exempt-income test

Correct Answer:

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