Determine his maximum deduction for lease payments for 2020

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Question: On January 1, 2020, Mr. Ray Holland leases an automobile to be used 100 percent of the time in his unincorporated business. The lease cost is $960 per month. The manufacturer's suggested list price for the automobile is $90000. Mr. Holland makes no down payment and no refundable deposits. Determine his maximum deduction for lease payments for 2020. Ignore GST and PST considerations.

Round to the nearest dollar. Do NOT write commas, dollar signs, or decimals in your response.

 

Reference no: EM133354146

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