Chowfew Pty Ltd $($Chowfew$)$ is a resident Australian company that commenced business on $1$ July $2022$ and sells

music equipment to retail customers.

For the income year ended $30$ June $2023,$ Chowfew$$s aggregated turnover was $$35$ million and its accounting profit

was $$100,000.$ Chowfew has provided the following extract from its balance sheet for the income year:

Balance sheet Notes As at $30$ June $2023$

$

Assets

Sales receivable Sales invoiced in June $2023$ and received in July

$2023$

$180,000$

Dividend receivable Dividend declared on $1$ June $2023$ from a non$-$

portfolio shareholding in a foreign company. The

dividend was paid and received in August $2023$

$3,000$

Prepaid rent Rent paid on $25$ June $2023$ for the period from

$1$ July $2023$ to $31$ December $2023$

$15,000$

Provision for doubtful debts Debts that are likely to be written off in November

$2023$

$(20,000)$

Right$-$of$-$use assets Leased assets worth $$80,000$ less amortisation of

$$10,000$

$70,000$

Liabilities

Right$-$of$-$use liability The lease payments were $$7,000,$ being $$5,000$ of

principle and $$2,000$ of interest

$(75,000)$

Accrued annual leave Unpaid annual leave balance $(8,000)$

Calculate Chowfew$$s taxable income for the income year ended $30$ June $2023$ by preparing a reconciliation from

accounting profit to taxable income and calculating the correct tax adjustment$/$s $($even if the adjustment is nil$).$

Show all workings.

For each net adjustment $($including nil adjustments$),$ provide the most relevant section reference.

Assume the above extracts from Chowfew$$s balance sheet contain the only possible tax adjustments.