Mr. Alex Roddle acquires an automobile to be used 100 percent of the time in his unincorporated business. This business has been in operation for several years. The purchase occurs on October 1, 2020 at a cost of $83,000. He finances $70,000 of the car purchase through his bank at an annual rate of 9 percent. Interest charges for the period October 1, 2020 through December 31, 2020 amount to $1,575. What amounts can Mr. Roddle deduct in his 2020 tax return with respect to this acquisition? Ignore GST and PST considerations.

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The Answer of Mr. Alex Roddle acquires an automobile to be used 100 percent of the time in his unincorporated business. This business has been in operation for several years. The purchase occurs on October 1, 2020 at a cost of $83,000. He finances $70,000 of the car purchase through his bank at an annual rate of 9 percent. Interest charges for the period October 1, 2020 through December 31, 2020 amount to $1,575. What amounts can Mr. Roddle deduct in his 2020 tax return with respect to this acquisition? Ignore GST and PST considerations.

Mr Alex Roddle Acquires an Automobile to Be Used 100