(A) How does a taxpayer value each item of stock on hand at the end of the income year? Explain your answer with relevant legal case / jurisdiction. (6 marks)

(B) What is trading stock? Why is it important to determine whether an item is trading stock? (4 marks)

(C) In the financial year 2020/21, Bonnie opened a book shop. During the year, he purchased 20,000 books from various publishers for $110,000 and sold 3,000 books for $80,000. Calculate her taxable income for the financial year. Show working (5 marks)

(D) What are the general principles for the general treatment of trading stock? When is trading stock on hand? (5 marks)