Question 1 (15 Marks) Jane owns a hairdresser franchise business. As at 1 July 2018, stock on hand of hair related products was valued at $300,000 (at cost). During the year, she purchased an additional $250,000 worth of stock and sales totalled $600,000. As at 30 June 2019, stock on hand of hair related products was valued at $400,000 (at cost), $450,000 (at replacement value) and $500,000 (at market selling value). a) Calculate Jane's business's taxable income from her trading activities for 2018/19. (Ignore the SBE rules and GST.) b) During Jane's spare time, about 10 hours per week, she likes to place bets online. Jane won $50,000 over the year from this online gambling activity. Advise Jane whether she would be required to include the $50,000 gain as ordinary income. c) In June 2020, Jane decided to liquidate some assets to fund the purchase of another salon. One was a parcel of shares in ATC Ltd which she had bought in 2019 for $40,000 hoping to make a profit in the short term. She sold them for $100,000. The other was a block of land which she had bought in 2016, intending to build a new salon on it an idea that she has now rejected because another salon had just opened in the area. What effect, if any, will these transactions have on her taxable income? Why