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.]
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ajt.5
![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.]
Round to the nearest dollar. Do NOT write commas, dollar signs, or decimals in your
response.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feac9e6be-c006-4624-a468-080c17074a87%2F60dc2e9d-0c11-40bc-b6bf-940d5c74580f%2F2z9n0tu_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.]
Round to the nearest dollar. Do NOT write commas, dollar signs, or decimals in your
response.
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