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Question 22 In May 2020, Pam purchased a property. Before buying the property. the end property and prepare an estimate of necessary repairs. Their report

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Question 22 In May 2020, Pam purchased a property. Before buying the property. the end property and prepare an estimate of necessary repairs. Their report stated that come to the property. The items requiring attention were: Plumbing for $2.400 Roofing and guttering for $2.100 Painting for $3,600 Incidental items for $900 The work was authorised and completed before the first tenants moved in Soon after, a section of the 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 the $34,000 or any part? (5 marks) B) Will a deduction be allowed for an additional cost of $1,600 paid to pest control experts who have treated the remaining parts building? (2.5 marks) A B 7 E E -)

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