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Part $1$

XYZ Ltd$.$ is a small business corporation and Mr$.$ X is its sole shareholder. In which of the following situations would ITA$15(1)$ apply?

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Part $1$

A$.$

XYZ Ltd$.$ pays for the purchase of a sail$$ boat, used by Mr$.$ X when he takes a break from his demanding work in the corporation.

B$.$

XYZ Ltd$.$ pays an annual salary to Mr$.$ X$.$

C$.$

XYZ Ltd$.$ reimburses Mr$.$ X for expenses that he incurred on behalf of the corporation.

D$.$

XYZ Ltd$.$ pays a monthly auto allowance to Mr$.$ X$,$ based on mileage incurred for business purposes.