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In May2020, Pam purchased a property. Before buying the property, she engaged an experience value and a builder to inspect the property and prepare an

In May2020, Pam purchased a property. Before buying the property, she engaged an experience value and a builder to inspect the property and prepare an estimate of necessary repairs. Their report stated that expenditure of $9000 would completely restore the property. The items requiring attention were Plumbing for $2400 Roofing and guttering for $2100 Painting for $3600 Incidental items for $900 The work was authorised and completed before the first tenants moved in Soon after, a section of upstairs floor collapsed, and Pam was advised that the property was infested with white ants and that it would be necessary to spend another $25 000 in having the entire flooring replaced with improved timber

Required a) Is Pam entitled to a deduction for $34000 or any part? b) Will a deduction be allowed for an additional cost of $1600 paid to pest control experts who have treated the remaining parts of the builiding?

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