On January 1, 2023, Mr. Ray Holland leases an automobile to be used 100 percent of the time in his unincorporated business. The lease cost is $1040 per month. The manufacturer's suggested list price for the automobile is $119000. Mr. Holland makes no down payment and no refundable deposits. Determine his maximum deduction for lease payments for 2023. Ignore GST and PST considerations. [Note that the prescribed amount for "B" in the Anti Avoidance formula increased to $36,000 as of Jan 1, 2023.]

On January 1, 2023, Mr. Ray Holland leases an automobile to be used 100 percent of the time in his unincorporated business. The lease cost is $1040 per month. The manufacturer's suggested list price for the automobile is $119000. Mr. Holland makes no down payment and no refundable deposits. Determine his maximum deduction for lease payments for 2023. Ignore GST and PST considerations. [Note that the prescribed amount for "B" in the Anti Avoidance formula increased to $36,000 as of Jan 1, 2023.]

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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