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