Ignatius Pty Ltd operates a chain of three electrical goods stores in Brisbane with the trading name "PlayTechnology". The company has three directors, Brian, Charles, and Kim. Brian, Charles and Kim own equal shares in the company. The business mainly sells gaming equipment, such as laptop computers, headsets, etc. In recent years the business has faced fierce competition from online retailers. On 1 March 2021 the business's accounts manager, Rebecca, received an invoice for $35,000 from YNOT Gaming which had supplied it with computing equipment. The company did not have enough money to pay this invoice and Rebecca informed the directors. Brian suggested that the company should take out a loan from the local bank, PayME Bank. Brian was due to have heart surgery so he took no further part in the management of the company. Charles and Kim tried to get help from various sources, and eventually they found a business contact in Malaysia who was willing to sell the company low-cost computing equipment. Ignatius Pty Ltd then purchased on credit $20,000 of this low-cost computing equipment from the business contact in Malaysia, and the directors plan to sell the equipment in a "PlayTechnology Discount Sale" to make a profit. They hope that this profit will inject enough cash into the company so that it will be able to pay its bills. It turned out that the business could not sell any of the equipment at the sale. Kim said, "Oh well, you win some and you lose some at least we tried". Now the company not only owes money to its suppliers and creditors but is also in debt for $20,000. Using your knowledge of Australian company law, advise the directors of Ignatius Pty Ltd whether: (a) the company is insolvent [2 marks] (b) the directors have breached the insolvent trading provision in the Corporations Act 2001 Cth [8 marks] (c) any defenses to insolvent trading apply in these circumstances [5 marks] (d) any remedies are available to the company and any penalties can be imposed on the directors [5 marks]