Kelly runs a delivery/courier business and had to replace the motor in one of his...

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Accounting

Kelly runs a delivery/courier business and had to replace the motor in one of his delivery vans. The original petrol motor had seized and need to be replaced. Kelly decided to replace the petrol motor with aa diesel motor since it is more fuel efficient. The cost of replacing the motor was $25,000. If Kelly replace it with the petrol motor, it will only cost $18,000. Please discuss the deductibility of the outgoing under S25-10 (200 words please)

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