Please answer the question below referring to Australian Taxation Legislation. Refer to taxation law subject. Thank you.

QUESTION FOUR XYZ Pty Ltd is an Australian trading company operating in Melbourne which an Australian resident company for tax purposes. The accounting profit and year ended 30 June 2016 is as follows: sells computer parts. It is loss statement for the 900,000 Sales less Cost of Goods Sold Opening Stock Purchases 50,000 40,000 90,000 Closing Stock see note (2) additional information 50.000 850,000 Gross Profit less: Operating Expenses Advertising Borrowing Expenses see note (3) Provision for Long Service Leave see note (4) 40,000 20,000 30,000 20,000 20,000 Wages Gifts see note (6) Rent 430000 Net Profit Additional Information (1) The company is registered for GST and all figures are net of GST. (2) For accounting purposes the company values its closing stock using the LIFO Method. The Opening stock value for tax purposes was $50,000 The FIFO Method however produces the following results for stock value at the end of the year. Cost Price Replacement Price Market Selling Value 60,000 70,000 80,000 The company wishes to minimise its tax liability. QUESTION FOUR XYZ Pty Ltd is an Australian trading company operating in Melbourne which an Australian resident company for tax purposes. The accounting profit and year ended 30 June 2016 is as follows: sells computer parts. It is loss statement for the 900,000 Sales less Cost of Goods Sold Opening Stock Purchases 50,000 40,000 90,000 Closing Stock see note (2) additional information 50.000 850,000 Gross Profit less: Operating Expenses Advertising Borrowing Expenses see note (3) Provision for Long Service Leave see note (4) 40,000 20,000 30,000 20,000 20,000 Wages Gifts see note (6) Rent 430000 Net Profit Additional Information (1) The company is registered for GST and all figures are net of GST. (2) For accounting purposes the company values its closing stock using the LIFO Method. The Opening stock value for tax purposes was $50,000 The FIFO Method however produces the following results for stock value at the end of the year. Cost Price Replacement Price Market Selling Value 60,000 70,000 80,000 The company wishes to minimise its tax liability