BFF Fine Jewellery Pty Ltd ("BFF") is an Australian resident company that manufactures jewellery which it sells directly to retail shops around Australia. The business premise is located in Macquarie Park, Sydney. The company has two directors and shareholders, Mr and Mrs Baldwin who eaach hold 10 shares in BFF. These shares were acquired for $1,000 per share on 10 January 2000 by Mr & Mrs Baldwin when BFF was incorporated. Balance Sheet of BFF as at 30 June 2020 is as follows:

Assets Liabilities Cash at bank $240,000 Trade creditors $360,000 Accounts receivable $390,000 Bank loan $2,300,000 Trading stock $120,000 Plant & Equipment $65,000 Shareholders Equity Business premise $2,620,000 Issued share capital $20,000 Residential premise $1,100,000 Retained earnings $1,855,000 Cash receipts and cash payments of BFF for the year ended 30 June 2020 are: Cash receipts $ Sales $3,500,000 Cash expenditure Trading stock $950,000 Wages $600,000 Water and electricity $110,000 Interest expenses - bank loan $115,000 Cash receipts of BFF after 30 June 2020 are: Capital proceeds from disposal of business premise $4,275,000 Capital proceeds from disposal of residential premise $2,185,000

Additional information: 1) Accounts receivable as at 30/6/2019 Nil

2) Trading stock on hand - 1/7/2019 Nil Trading stock on hand - 30/6/2020 Cost $120,000 Replacement cost $165,000 Market selling value $350,000 Trading stock account doesn't include the stock costing $25,000 that is yet to be delivered because it is still on a freighter at sea. BFF holds the bill of lading for the trading stock and delivery to the warehouse is expected on 1 July 2020.

3) Mr and Mrs Baldwin decided to relocate its business operations to Singapore from 30 June 2020 and sold the following assets: - Business premises: acquired on 1 May 2000 for $2,620,000 which included the administration office, factory and warehouse. Entered into a contract on 20 June 2020 to sell for $4,500,000. The legal fees and agent fees on the sale totalling was $225,000. The sale was settled, and the capital proceeds received on 30 July 2020. - Residential premises: acquired from Mr & Mrs Baldwin for $1,100,000 on 10 February 2014. However, a registered valuer had advised BFF that the market value of the premises was only $750,000 at the time. Entered into a contract on 1 June 2020 to sale for $2,300,000. The legal fees and agent fees totalling $115,000. The sale was settled, and the capital proceeds received on 1 July.

Required: 1) Advise Mr and Mrs Baldwin on what amounts may be included in BFF's assessable income for the 2019/20 tax year (Assuming Mr and Mrs Baldwin want to minimise BFF's taxable income and BFF is not small business entity).

2) Calculate BFF's assessable income for the year ending 30 June 2020