A Business Taxpayer Has Incurred an Interest Expense in Respect

A business taxpayer has incurred an interest expense in respect to a loan for use in that business. Which of the following statements is true?

A) A taxpayer carrying on a business is free to use whichever positive limb of section 8-1 ITAA97 they wish in applying the rules for a deduction but as the second positive limb is much broader in its operation, a taxpayer carrying on a business will nearly always apply the second positive limb
B) A taxpayer carrying on a business can only apply the second positive limb of section 8-1 ITAA97
C) A taxpayer carrying on a business can only apply the first positive limb of section 8-1 ITAA97
D) A taxpayer carrying on a business cannot apply section 8-1 ITAA97