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Question 22 Not yet answered Marked out of 7.50 Flag question In May 2020, Pam purchased a property. Before buying the property, she engaged an

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Question 22 Not yet answered Marked out of 7.50 Flag question In May 2020, 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 $9,000 would completely restore 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 of the building (25 marks) " B 1 2 A)

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