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Question 2 (10 points) Ahmed borrowed $140,000 at a 5.5% annual interest rate from a local financial institution to finance the following investments. A Cost

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Question 2 (10 points) Ahmed borrowed $140,000 at a 5.5% annual interest rate from a local financial institution to finance the following investments. A Cost Common shares of a public corporation paying no dividends $20,000 Gold bullion (treated as capital) 25,000 Corporate bond (yield is 6% per annum) 20,000 Preferred shares (4% annual dividend) purchased in RRSP 10,000 Common shares (2% annual dividend) in spouse's name 30,000 Paintings from well-known galleries 15,000 Guaranteed Investment Certificate paying interest at 6% per annum 20,000 $140,000 Required: Assuming that the investments were held for the full calendar year, dotermine the deductihility of interest expense for each investment

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