Question 1Bob Jane Racing Pty Ltd carries on business as a motor racing promoter

| April 14, 2018

Question 1Bob Jane Racing Pty Ltd carries on business as a motor racing promoter and finds thatflooding has caused damage to sections of its track. Repair of the track would involvereconstruction of the long straight at a cost of $58,000. The company decided instead toconstruct a bypass and reduce the length of the track by 300 metres. The bypass wasconstructed with exactly the same materials as the original track.The cost of the bypass was $32,000Required:What amount if any would be allowed as … 

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