Discuss whether the following expenses are allowable deductions in whole or in part. Relevant authorities must be cited in support of each answer.

Discuss whether the following expenses are allowable deductions in whole or in part. Relevant authorities must be cited in support of each answer.

Borrowing expenses paid by a construction company amounted to $550.

The term over which the loan was repayable was 4 years.

The expense was incurred on 1 January 2016.

The funds were used for business purposes.

What are borrowing expenses? Provide specific examples. To what extent