1. As of 30 June 2013, Daniel had adopted the market selling value for 2,000 widgets, being trading stock on hand at that time, of $180 per unit. In order to legally minimize Daniel’s assessable income for the year ended 30 June 2014, what valuation should be adopted as the taxation value for trading stock of 30 June 2014? Closing value at 30/06/2014 Cost: $200 Market selling price: $250 Assessable income Sales: Closing balance-opening balance 1. Cost: 200-180=20 2. Market selling price: 250-180=70

2.

Kate has the following values of trading stock on hand at 30 June 2014. She wishes to minimize her assessable income for the current year. She provides you with the following stock values:

Cost using LIFO method of valuation $30,000

Cost using FIFO method of valuation $37,800

Market selling value $44,300

Cost using average cost method of valuation $33,700

Replacement value $36,300

Which value should she use to minimize her assessable income?

3.

Nicholas wishes to minimize his assessable income and has 20 of each of the following types of units as trading stock on hand at 30 June 2014.

Cost Market Replacement

Unit A $100 $150 $125

Unit B $400 $350 $320

Unit C $200 $190 $205

Unit D $50 $70 $40

To minimize his assessable income what amount should he value trading stock at 30 June 2014?

Nicholas wishes to minimize his assessable income and has 20 of each of the following types of units as trading stock on hand at 30 June 2014.

Cost Market Replacement

Unit

A  $100 $150 $125

B $400 $350 $320

C $200 $190 $205

D $50 $70 $40

To minimize his assessable income what amount should he value trading stock at 30 June 2014?