At the 30 June 2015, Outboard Ltd performed a stock count. It had the following outboards in stock:

Honda Mercury Yamaha Cost $10,100 $9,000 $8,000 Replacement price $10,300 $8,900 $9,000 Market selling price $10,600 $9,500 $7,500 Outboard Ltd had no opening stock and it wishes to minimize its taxable income for the year.

Required:

i. Calculate Outboard Ltd.s closing stock for the year ending 30 June 2015.

ii. How would you value Outboard Ltd.s closing stock if they had a loss carried forward from prior years of $30,000.

show the working note.