Tokyo Motors Limited is a private company in Fiji. Seventy-five percent of the shares are owned by Mr. Randeep Khanna and he is also the managing director of the company. The company conducts a motor vehicle repair business. The company also buys and sells second-hand vehicles including accident vehicles which are repaired and sold.

The company incurs the following expenditures in 2019:

1. One Saturday afternoon in March, Mr. Khanna driving to a supplier's factory from his office was involved in an accident with another vehicle owned by one of his customer, Mr. Kumar. Kumar's vehicle was just few days ago repaired by Tokyo Motors Limited. This is an old classic vehicle. During the collision, Khanna was at fault. This is due to the fact that he was getting late to reach the supplier's factory for some purchase of spare parts for his business activities and he went to the incoming side of the road. He agreed to repair Kumar's vehicle. The total repair cost (materials and labour charge) was $3,000. The repair was done by Tokyo Motors Limited.

2. Once Kumar's vehicle was repaired, Khanna offered Kumar $10,000 to sell the vehicle. Kumar agreed and sold his vehicle to Tokyo Motors Limited.

3. In April, a cyclone severely damaged the roof of one of the garages of the company. The roof was beyond repair and the appointed contractor has to replace the entire roof structure. The cost of replacing was $50,000.

4. In July, the company terminated an employee who has the history of being coming late to work even though warned numerous times. The company believed that the dismissal was justified on the ground that all staff must be at work by 8 am as per their employment contract. However, the employee took legal action for wrongful termination. The company incurred a legal cost of $4,000 to defend the case.

5. In August, the company approached PWR Accountants, an accounting firm to object the tax assessment for the 2018 period. The objection was successful and the tax office issued an amended assessment for the 2018 period. The fee paid by the company to PWR accountants was $2,000.

REQUIRED:

Advise Tokyo Motors Limited on each of the expenditures mentioned above whether it will be allowed as a deduction by the tax office or not in the year ending 31st December 2019. Deal with each of the expenditures separately. Your answers require reference to the appropriate Income Tax Act's section(s) and Case Laws.