BagCo Ltd is a large company that sells expensive, high quality, leather handbags. During the 2017/18 income year, BagCo Ltd spends $1m on the purchase of trading stock, and pays $2m in wages to employees. BagCo Ltd also pays $70,000 rent to occupy various retail premises in shopping centres during the 2017/18 income year. BagCo Ltd also incurred $40,000 in legal expenses in defending one of its directors against charges of misconduct in the 2017/18 income year. Brenda is an accountant employed by BagCo Ltd. Brenda leases an apartment in Chippendale, where she lives and maintains an office used exclusively for her accountancy work. BagCo Ltd does not provide her with an office. On 1 July 2017, Brenda paid $10,000 (GST exclusive) for a new piece of equipment, for her accountancy work. The equipment has an effective life of five (5) years. The equipment is used 80% for her accountancy work and 20% for private purposes. Brenda is very ambitious and in January 2018, in an effort to further develop her accounting skills, she attends a chartered accountants’ conference over two days in Brisbane organised by the Chartered Accountants Association. She pays a conference fee of $700 and incurs $1000 on air travel and accommodation in relation to attending the conference. Brenda also spends $800 on purchasing new suits to wear to work, and $150 on a “corporate” haircut, in order to look more like a Partner at the accounting firm and to improve her overall presentation. Advise Brenda and BagCo Ltd as to whether they can claim any deductions arising from the above facts, in the 2017/18 income year. In your answer, make sure you refer to any relevant cases, legislative provisions, and principles of tax law.