You have completed your Bachelor of Accounting studies at Macquarie University. After studying for the Certified Public Accountant Exams (CPA), you work as a tax accountant. A client by the name of Annabel Salim walks into your office. Ms. Salim owns and operates a dog grooming business called "Healthy Pups Grooming." She is registered as a sole trader and has her own Australian business number. Ms. Ahmed is also registered for GST as she earns more than $75,000 per year. Ms. Salim used a grooming van to travel from her home to her client's place to groom dogs. The van is used to travel to several client's places in a day. The grooming van was used for income-producing purposes. The van's old diesel engine was worn out and required considerable expense to replace. Ms. Salim decided to replace the diesel engine with a petrol engine, which improved the van's function. Ms. Salim indicated to her tax accountant, "I only replaced the diesel with a petrol engine as it will reduce future repair bills." Ms. Salim's dog grooming business income was accounted for on an accrual basis rather than on a cash basis. She accounted for her income at the time when it was derived, not when it was received. Many of her clients were on a government subsidy pension and could not pay her for the dog grooming service. There were 12 clients whose dogs were groomed; they owed $100 each. The total amount owed was $1,200. All amounts include GST. It has been three months since the previous invoice was issued and there is a $1,200 debt. Ms. Salim plans to write off the debt as a bad debt. Ms. Salim was going through a difficult period in her life. One day, she was carrying $500 cash, taking the day's earnings to the bank when she was robbed along the way to the bank. Meanwhile, a rival business company titled ' Healthy dog grooming', which is a start business was advertised to open in Ms Salim's neighbourhood. Ms Salim's application and legal avenue was to block the 'Healthy dog's grooming' to operate as a rival business. Ms Salim incurred $5,000 legal expenses to stop a rival competitive business from operating.

(a)Are the costs of replacing the engine deductible?
(b)Can Ms. Salim write off the $1,200 debt?
(c)Can Ms. Salim claim the loss of $500 as a deduction?
(d)Advise Ms Salim as to the deductibility of claiming legal expenses with respect to the rival business?