Question 3 Using the facts in end-of-chapter question 16.3 of Principles of Taxation Law (PoTL) 2019, but specifically only in reference to part (a), (b), (c), and (g) of this question, you are required to calculate the taxable income of BBNT Pty Ltd. Show all your calculations and provide reasons for your answers, referencing relevant sections of the Income Tax Assessment Acts, relevant case law, and/or rulings from the Australian Taxation Office. [Hint - as this task is only about four items from this question, this question should not take you long.] 16.3 For the year ended 30 June, BBNT Pty Ltd, a lawn mower manufacturer, reported an operating (accounting) profit of $750,000. The company does not elect to be taxed as a SBE taxpayer.In coming to this profit figure, the financial accountant had taken into account the following items: (a) $30,000 has been claimed as a deduction being the amortisation of goodwill arising from the acquisition of a business two years earlier. (b) (c) (d) A provision has been raised for future warranties equal to 2% of sales. During the year, the sales amounted to $5 million. Depreciation on the buildings was $50,000. However, for tax purposes, only $25,000 is tax deductible. The company spent $75,000 on legal expenses opposing an application by Heavy Mowers Pty Ltd to extend its patent on a brand of mower. If the patent was not extended, then BBNT could produce a similar mower. The company borrowed $200,000 on 1 January of the current year to cover the purchase of new plant. The loan is repayable in 10 years. The cost of borrowing was $2,500, and this amount was written as a deduction in the company financial accounts when it was paid. (e) The company only brought to account in its financial statements the difference between the current market value of $220,000 and the proceeds, namely $300,000, as their accounting gain on sale. ining) (g) The directors also advised the financial accountant to make a provision for: (i) bad and doubtful debts of $30,000; (ii) annual leave and long service leave of $60,000