2. How does the ITAA define 'trading stock'? Give examples of assets that could constitute 'trading stock' of a business.

2.1Under Division 70 ITAA 1997, concisely outline how a taxpayer must go about accounting and valuing trading stock for tax purposes.

2.2. Briefly explain what is meant by "market selling value" as a method of valuing trading stock. Does it contemplate a forced sale, e.g.: an auction of the stock without a reserve? How does this method differ from the Replacement value method ?

3. Is there a difference between the definition for a public and a private company for income tax purposes and broadly speaking does this have any practical impact in terms of the tax rules ?