Take home Mid-term Test 10% This test consists of 3 questions. All answers must be referenced with the appropriate section of the Statuary Law and/or Case Law. Question 1(5marks): Kim Lyons purchased a house in Brisbane, Queensland on 1 December 2018 for $600000 as a long-term investment. She then decided to rent the house out to a tenant from the date of purchase for $700 per week. Kim provides you with the following information in respect of the house purchase: 1. A loan of $400,000 was taken out on 1 December 2018 for 20 years to purchase the house. Interest paid on the loan for the tax year ended 30 June 2019 was $28,000. The legal fees, loan charges and stamp duty paid in relation to the loan were $10,000. 2. The roof on the house was damaged and was replaced at the time of purchase for $22,000. 3. One of the bedrooms was repainted on 15 April 2019 at a cost of $1,200. 4. The timber floor in the outside laundry was replaced with a concrete floor on 1 April 2019 at a cost of $4,000. The floor was replaced due to water damage caused by a leaking pipe. 5. A gas heater was purchased on 18 June 2019 for $5200. The heater had an effective life of 10 years. Kim seeks your advice as to what deductions (if any) she might be able to claim regarding the above expenditure for the 2018/19 tax year