Briefly elaborate both questions

12.11 Jake is an accountant who migrated to Australia three years ago. As part of establishing himself in Australia, he intends to invest in the property market. As Jake is not familiar with the Australian property market, he engaged the assistance of a property broker to assist with finding a suitable investment property. The broker charged an upfront fee of $5,000. Six months later, the broker located a vacant block of land and suggested that Jake develop three townhouses on it. The cost of the land ($1 million) and estimated development costs ($900,000) exceeded Jake's budget, and he decided to undertake the venture with a business partner. The agreement with the business partner was that Jake would purchase the land and the partner would incur all development costs. The profits from the eventual sale of the townhouses, expected to be in 18 months, would be split equally between Jake and the partner. Jake established a $1 million credit facility with his bank which would enable him to access the pa, and Jake provided the title to the land as security for the funds Advise Jake as to the deductibility of the property broker's les required funds as necessary. The interest rate on the facility was 2.12 Following on from 12.11, shortly after the land was purchas another suitable business partner and subsequently sold the land Jake's business partner declared bankruptcy. Jake was unable to to discharge his borrowings, Jake continues to pay interest charge on the remaining $100,000 owed to the bank. Advise Jake as to the deductibility of the interest charges incurred after the land was sold auction at a loss for $900,000. With sale proceeds being insuficien the facts from 12.11. Would your response to the bank interest charges under s 8-1