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