Question
a) Jordan is a boat builder and owns his own business, building exclusive yachts. He is building himself a yacht and took some building materials
a) Jordan is a boat builder and owns his own business, building exclusive yachts. He is building himself a yacht and took some building materials costing $5,000 for his own use. The materials could have been sold for $6,250.
(b) At the 30 June 2019, Boat Ltd performed a stock count. It had the following boats in stock: Lagoon Swan Simitar Cost $10,100 $9,000 $8,000 Replacement price $10,300 $8,900 $9,000 Market selling price $10,600 $9,500 $7,500 Boat Ltd had no opening stock and it wishes to minimize its taxable income for the year.
Required:
i. Calculate Boat Ltd’s closing stock for the year ending 30 June 2019. Explain and support your answer with an explanation and reference to relevant legislation.
ii. Required: State what amount, if any, is assessable in respect of the above.
can you please show the calculation with a working note;
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