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Question 5 Gavin Green operates a shop situated on a sharp bend in the road. During the income year a truck fails to take the
Question 5 Gavin Green operates a shop situated on a sharp bend in the road. During the income year a truck fails to take the bend and badly damages the front of the shop. Gavin is undecided whether to restore the front of the shop to its original condition at a cost of $25,000 or to rebuild it so that it has a much more attractive appearance. The cost of doing this would be $40,000. Required: Advise Gavin Green of the tax implications of: (a) Restoring the front of the shop to its original condition, and (b) Rebuilding the shop front Please refer to case law and legislation in your advice Click or tap here to enter text. 10 + 10 marks = 20 marks
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