Francis is an experienced businessman working in the

Francis is an experienced businessman working in the hospitality industry for many years. He hasrecently purchased an old restaurant. The commercial kitchen in the restaurant was in poorcondition. Replacing the whole commercial kitchen will cost Francis $23,000. The cost of repairingthe kitchen appliances will be $4,900, however some parts may not be available in the marketanymore as these appliances are too old and obsolete. Francis decided to replace the commercialkitchen with brand new modern appliances because new modern appliances in the market havebetter features and durability.Advise Francis on the deductibility of the above transactions. Your advice must be supported byreference to relevant legislation and principles of tax law.

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