Question
Elizabeth owns and operates a furniture store where she buys new and used furniture to on-sell to the public. On 1 August of the current
Elizabeth owns and operates a furniture store where she buys new and used furniture to on-sell to the public. On 1 August of the current tax year she purchased an ornate display cabinet for $10 000 as an item of trading stock. She put the cabinet in her showroom and it had a sale price of $14 900. However she liked the item so much that she decided to use it for personal purposes from 1 October of the current tax year when the replacement price was $12 600. What are the tax consequences of using the item for personal use?
Select one:
1. Elizabeth will include $2600 in her assessable income.
2. Elizabeth will include $14 900 in her assessable income.
3. Elizabeth will include $4900 in her assessable income.
4. Elizabeth will include $10 000 in her assessable income.
5. Elizabeth will include $12 600 in her assessable inco
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