Question 7 Roley is a crop farmer (primary producer) who uses a tractor in his business operations. On 1 May 2016 he paid $13,000 to replace the engine in the tractor. The replacement engine was 250 hp (187.5 kW), while the old engine was 175 hp (131.25 kW). Roley purchased the tractor on 4 June 2013 Assuming that Roley's accountant advised him that he could not claim a deduction for the $13,000 under s 25-10 ITAA97, for which of the following reasons would his accountant have given this advice? 1. The repairs were "terminal repairs". 2. The repairs constituted a significant improvement to the tractor. 3. The repairs were "notional repairs". 4. The engine constituted an entirety and was an asset in its own right. 5. The repairs were initial repairs