QUESTION 5 Nicholas is a sole trader operating as a retailer. He maintains a periodic inventory system. Nicholas had $57,000 of trading stock on hand at 1 July 2021. This trading stock was valued at cost. During the 2022 income year, he purchased $120,000 of trading stock and his sales totalled $190,000. On 30 June 2022, he had $69,000 in trading stock on hand valued at cost. Assuming that Nicholas continues to value his trading stock at cost for tax purposes at the end of the 2022 income year, what is the TOTAL amount that he should include as assessable income for the 2022 income year? (a) $82,000; (b) $178,000; $190,000; $202,000.

QUESTION 5 Nicholas is a sole trader operating as a retailer. He maintains a periodic inventory system. Nicholas had $57,000 of trading stock on hand at 1 July 2021. This trading stock was valued at cost. During the 2022 income year, he purchased $120,000 of trading stock and his sales totalled $190,000. On 30 June 2022, he had $69,000 in trading stock on hand valued at cost. Assuming that Nicholas continues to value his trading stock at cost for tax purposes at the end of the 2022 income year, what is the TOTAL amount that he should include as assessable income for the 2022 income year? (a) $82,000; (b) $178,000; $190,000; $202,000.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges

Section: Chapter Questions

Problem 14DQ

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