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

1. Kim is a sole proprietor
2. Cup Cake & Coffee is incorporated