Best way for iTunes and Apple TV to output high resolution music files?

I am currently listening to music at home using this set-up:
My iTunes library of Apple Lossless music files ( Win 7 ) is in my home office, and it is connected to an Apple TV 3 in the living room through an Ethernet cable.
The Apple TV 3 is connected to a DAC Moon 100D through an optical cable
The DAC is connected to an integrated amplifier Cambridge Audio Azur 815A which outputs the analogical sound to the speakers.
I want to have best possible sound quality, but as far as I understand I have some limitations on this set-up:
1) Apple TV outputs everything at 16 bit/48 kHz (not bit perfect and not 'CD quality' 16 bit/ 44.1 kHz). So, even if I have higher quality music files being served from iTunes, it will be down sampled to 16 bit/48 kHz.
2) ITunes does NOT support 24bit recording and all Apple Lossless music files are automatically converted back to 16-Bit by iTunes
So here are my questions:
Can I play 24bit music files using iTunes directly from the PC to the DAC?
If yes, which formats?
Any suggestions to improve my set-up output quality?
Thanks in advance.

Hello Sugarrayleonard,
After reviewing your post, I have located an article that can help in this situation. It contains a number of troubleshooting steps and helpful advice concerning Apple TV issues. You may want to consider a full restore of the device, if you haven't tried that yet:
Apple TV (2nd and 3rd generation): Restoring your Apple TV
http://support.apple.com/kb/ht4367
Restoring your Apple TV to factory settings
On Apple TV, choose Settings > General > Reset, and then click Restore.
Your Apple TV will restore to factory settings and will download and install the latest Apple TV software. This process may take some time. Do not disconnect your Apple TV's power cable during the restore process.
If you cannot use this process, and you have a micro-USB cable, try the steps in the next section.
Thank you for contributing to Apple Support Communities.
Cheers,
BobbyD

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