(a) Betty borrowed $200,000 at an interest rate of 10% p.a. from XYZ bank to purchase the goodwill, premises, equipment and stock of a cookware shop. As security for the loan, she was required to mortgage her holiday home.

(A) Please discuss whether the interest would be deductible

(b) Please discuss, with reference to case authority, whether the purchase of the goodwill, premises, equipment and stock would be deductible .

(c) Unfortunately, Bettys business was not profitable. She decided to sell the business and seek work in a different industry. She sold her business in May 2020 after spending $22,000 on advertising the sale with an estate agent. Unfortunately, the sales proceeds were not sufficient to discharge her existing bank loan and she was required to make regular monthly interest payments on the outstanding balance. Please discuss whether the advertising expenses would be deductible

(d) With reference to case authority, advise Betty as to whether the interest payments after the business has ended will be deductible