How much other costs can ms rawlings deduct

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Q1- On June 4, 2020, Ms. Annie Rawlings purchased an automobile to be used exclusively in her unincorporated business. The cost of the automobile was $42000, before GST and PST. She finances a part of the purchase price and, as a consequence, has financing charges for the period June 4, 2020 to December 31, 2020 of $3400. Ms. Rawlings has decided not to deduct any CCA this year. Ignoring any deduction for CCA, how much other costs can Ms. Rawlings deduct in 2020 with respect to this vehicle acquisition?

Q2- Which of the following is correct?

A. In determining whether a disposition is capital or business in nature, the number and frequency of transactions is taken into account.

B. A taxpayer must include 50 percent of both business income and capital gains in their Taxable Income.

C. Amounts collected under an insurance policy are considered capital gains.

D. The sale of a depreciable asset can result in a capital gain or capital loss.

Reference no: EM132768396

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