RIGHT ANSWERS ONLY PLEASE

6. 8. Antonio Capellini is an accountant providing tax and accounting services as a sole proprietor. He meets ot his clients in his office in the basement of his home. 800 square feet attributable to his home office plus common areas. The house is 3,000 square feet of livable space. Antonio incurred the follow-ng expenses in the current year: Business liability insurance House insurance House utilities House repairs and maintenance Mortgage interest Property tax Office supplies $ 400 5,700 1,600 760 What is the maximum expense that can be claimed with respect to the amounts listed above? A. $1,160 8. $2,888 c. $3,675 D. $4,835 Kyle purchased a large lot on a lake in anticipation of building his home there within 3 years. In the current year, Kyle paid $650 in property taxes and $2,500 of interest on the demand loan he obtained to purchase the lot. January to March he rented out the lot to a local snowmobile club for $1,500. The amount charged is chosen to allow Kyle to recover some of his costs. Which of the following statements is correct? A. 8. C. D. Kyle can deduct the $650 of property taxes paid and $850 of the interest Kyle can deduct the $650 of property taxes paid, but none of the interest paid. Kyle cannot deduct any of the property taxes or interest paid for the vacant lot. Kyle can deduct all gf the property taxes and interest paid. The capital cost of a depreciable property includes capital cost components. Indicate which cost components would NOT be considered part of the capital cost. A. 8. C. D. Legal fees incurred to acquire the property. Custom duties paid. Fire and theft insurance on the property. Non-refundable provincial sales taxes.