At 1 July 2020, the value of Laser's trading stock on hand was $290,000. At 30 June 2021, Laser has a trading stock balance of $280,000 (valued at cost) in the balance sheet which does not include trading stock costing $225,000 that is yet to be delivered because it is still on a freighter at sea. Laser holds the bill of lading for the trading stock and delivery to the warehouse is expected on 10 August 2021.

Questions

1. Advise Laser on the balance of its trading stock on hand at 30 June 2021.

2. Explain how your answer affects Laser's income tax liability for 2020/21 year.

3. Are there any choices available to Laser to make its tax liability higher or lower?