1. Yeri runs K-Beauty, a Korean skincare retail store in Auckland, New Zealand, as a sole trader. The following GST-exclusive information has been provided in relation to the income year ended 31 March 2022:
   • Sales less cost of goods sold and other operating expenses were $820,000. The following items are not included in the $820,000).
   • A six-month term deposit with a New Zealand bank matured on 15 June 2022 and $6,000 of gross interest was received. The account is under the trading name of the business, 'K-Beauty'. At 31 March 2022, $1,600 of this interest had accrued as owed to K-Beauty under the term deposit agreement.
   • On 1 April 2021, Yeri received an inducement payment of $15,000 to renew the existing lease on her business premises for a further three years (1 April 2021 - 31 March 2024).
   • A doubtful debt provision of $7,000 was raised in the income year, of which $2,900 was written off for accounting purposes prior to year end. The debt related to an invoice that was included as income in the previous income year.

What is Yeri's taxable income for the income year ended 31 March 2022? Ignore any impact of the financial arrangements rules in your answer.

Answer rating: 100% (QA)

Answer To calculate Yeris taxable income and GST payable for the income year ended 31 March 2022 we ... View the full answer