The taxpayer is a retail business and has performed a stock take and determined the following values in regards to certain stock that has seen demand reduce from customers:

• $160,000 - Net realisable value
• $200,000 - Stock on hand at cost (including obsolescent stock costing $20,000, although has no value)
• $340,000 - Market selling value

In regard to the above values, advise the closing stock the taxpayer should choose to minimise the taxable income of the business.

Select one:

a. $200,000

b. $340,000

c. $180,000

d. $160,000

Answer rating: 100% (QA)

Correct Answer d 160000 Reason Closing Stock is valued at lower ... View the full answer