Question
Kim owns and manages Cup Cake & Coffee. During 2021 Kim leased an automobile which she drove for 13,000 km , 10,000 km of which
Kim owns and manages” Cup Cake & Coffee”. During 2021 Kim leased an automobile which she drove for 13,000 km , 10,000 km of which were related to business purposes, and incurred the following auto related expenses
- Lease payments $10,000
- General Operating expenses $1,300
- Insurance $1,400
Required
What are the tax implications for Kim assuming
- Kim is a sole proprietor
- Cup Cake & Coffee is incorporated
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
