Business, 20.09.2020 14:01 kayla942783

Anja is an advisor. She uses her own car to travel to various locations to meet clients. She acquired a car on 1 March 2020 for $57,000. The acquisition cost was funded entirely by a loan at an interest rate of 10%. She has determined that the depreciation deduction on the car would be $5,700 for the year. In addition, Anja incurred the following expenses during the year: • Registration and insurance = $5,000;
• Repairs and maintenance = $300; and
• Oil and fuel costs = $4,100.

For the period 1 March 2020 to 30 June 2020, Anja estimates that the car travelled a total of 12,000 kilometres; 8,000 of which were for business purposes. You may assume that Anja has maintained all necessary records and a logbook. Assume that depreciation has been adjusted for partial year use and the impact of the car limit.

a. Calculate Anja's deduction for car expenses under "cents per kilometre" method.
b. Calculate Anja's deduction for car expenses under log book method.
c. Which method is preferable for Anja and why?

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 19:30, baseball1525

Why does the united states government provide tax breaks related to the amount of money companies spend on research and development? a. to provide incentives for companies to conduct research and development to allow antitrust authorities b. to challenge joint research efforts c. to protect the right of inventors d. to produce and sell their inventions e. to involve less government scrutiny than a government funded project

Answers: 1

continue

Business, 21.06.2019 20:30, saykblahwah309

Long-distance providers are becoming increasingly concerned about certain activities within their industry. various companies come together voluntarily to implement new standards of social responsibility that members must abide by. what seems to be the primary motivation in this case for an increased interest in social responsibility? - because corporations are creations of society, they are responsible for giving back to the communities in which they operate.- these companies have realized it is in their best interest to increase their social responsibility before they are once again subject to stricter regulations.- these companies are using social responsibility as a means to increase their profitability, both short term and long term.- long-distance providers have started taking pride in their industry and its record for social responsibility.- they feel a responsibility to their stockholders, employees, the government, investors, and society as a whole.

Answers: 2

continue

Business, 21.06.2019 22:10, kelseydavid69

Sarah needs to complete financial aid packets. during which school year would she do this? sophomore freshman senior junior

Answers: 2

continue

Business, 22.06.2019 10:40, charlesrogers38

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk

Answers: 1

continue

You know the right answer?

Anja is an advisor. She uses her own car to travel to various locations to meet clients. She acquire...