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A Tax Deduction May Be Permitted for Lease Rentals Provided

Question 8

Multiple Choice

A tax deduction may be permitted for lease rentals provided that:


A) the lease is classified as an instalment purchase agreement.
B) the lease agreement does not give the lessee an option to purchase the leased asset at the end of the lease term.
C) the leased asset is used to generate revenue.
D) the lease is an operating lease.

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