A SBE taxpayer conducts a business as a retailer and performs a stock take that values the
Question:
A SBE taxpayer conducts a business as a retailer and performs a stock take that values the stock at year end 2023 as $88,000.
The prior year, using the same method of valuation, the stock take valued stock at $84,000 at year end 30 June 2022.
From the above information, identify the option below that will minimise the taxpayer's taxable income.
a. The taxpayer uses the closing stock from 2022 for 2023 - no change necessary to account for the change in value
b. The taxpayer uses the closing stock for 2022 - and claims a deduction of $4,000 to reflect the change in value
c. The taxpayer uses the closing stock for 2022 - and includes income of $4,000 to reflect the change in value
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill