Calculate taxable income for the 2018-2019 income year starting with profit before tax from continuing operations. Provide reasons for your answers, referencing relevant sections of the Income Tax Assessment Acts, relevant case law, or rulings from the Australian Taxation Office. Show all calculations. Ignore GST.

Jones Emporium Pty Ltd operates a chain of fashion outlets across Australia. The company's Statement of Comprehensive Income for the year ending 30 June 2019, shows Profit before tax from continuing operations of $53,897,890. The following transactions were accounted for as expenses to calculate Profit before tax from continuing operations: The company purchased 500 beach towels in the corporate colours at a cost of $30,000 and gave these away to staff members as a gift, being a token of appreciation when the company achieved its profit target for the year 1. 2 During the year, the company purchased cinema tickets at a cost of $42,000. Every month, 100 lucky customers got two movie tickets free, based on a random draw. Each month, the winners' names were featured in advertisements to promote new clothing lines. The company operates a canteen at its head office that provides staff with free cold lunches The operating cost of the canteen totalled $250,000 during the income year The company incurred legal fees of $40,000 on 1 February 2019, in successfully blocking a competitor's application to open a fashion retail outlet in the same shopping centre as Jones Emporium Pty Ltd's flagship store in Sydney. This was the fifth application that the company successfully blocked in as many years. 4. 5. Security expenses, $50,000. This amount represented 1/12h of a prepayment made to a security company for guard services at some of the company's stores for a 12 month periocd starting on 1 June 2019. The prepayment was made on 1 June 2019