Bill and Bob have been partners in an accounting practice for the past 10 years. Bob has decided to sell his half share of the practice to Bill and travel overseas. As part of the sale contract, Bob has signed an agreement to say he will not establish or work for another accounting firm within a period of three years or a radius of 100km. Bill paid Bob a lump sum of $100,000 and will pay a further $20,000 per year for the next three years as a result of this agreement. Based on these facts, which of the following statements would be most correct in relation to Bill's ability to claim tax deductions for the payments to Bob under s 8-1 ITAA97?

	a.	The payments were incurred to expand Bills business and earn more assessable income and should be tax deductible.
	b.	The payments seek to establish or expand Bills business entity and are therefore capital in nature and not deductible.
	c.	The payments secure a temporary advantage no different from the paying of an annual premium for insurance on a motor vehicle.
	d.	The payments relate to circulating capital and are accordingly deductible.
	e.	The payments were necessarily incurred in the course of carrying on Bills business and should be deductible.