QUESTION 3-COMPANY TAXATION For the 2020/21 tax year, Jepson Ltd, a resident large public company, has the following profit/loss in relation to its income and expenses: Income: $ $ Rental income received from tenants 160 m Fully Franked distributions: resident public companies 15 m Unfranked distributions: resident public companies 10 m 185 m Less expenses: Interest on borrowings to purchase shares in public companies 85 m 85 m Net income (NB m = million) REQUIRED $100 m Interest on borrowings to purchase shares in public companies 85 m 85 m Net income $100 m (NB m = million) REQUIRED In your responses below, ensure you state the appropriate legislation, tax rulings or common law cases to support your answer and calculations. Further, for Part 1 only, very briefly state the reasons as to why the law applies to the facts. Part 1 Determine the taxable income for Jepson Ltd for the 2020/21 tax year. (10 marks)