Patrick has a car that he uses 70% in his business. He purchased it on 1 April three years ago for $45 000 and the adjustable value of the car on 29 June of the current tax year was $23 020. He sold the car for $20 000 on 29 June of the current tax year. What amount should Patrick include in his assessable income or claim as an allowable deduction as a result of selling the car?

Select one:

1. $25 000 as a deduction.

2. $3020 as a deduction.

3. $2114 as a deduction.

4. $14 000 as a deduction.

5. $20 000 as assessable income.