Emily runs her own business selling jewellery. She purchases the jewellery directly from jewellery makers in various African countries and sells the jewellery in various upscale markets in Victoria. The following transactions took place during the year:

(a) Emily purchased $5,000 worth of jewellery on 1 June from a jewellery maker in Ethiopia. The jewellery was loaded on to a ship the next day and under the terms of Emily's agreement, she takes ownership, control, and risk of the jewellery once it is loaded on to the ship in Ethiopia. Half of the jewellery was delivered to Emily on 3 July. The rest of the jewellery was not delivered to Emily but was delivered directly to a customer in New Zealand on 5 July. The customer had purchased the jewellery from Emily on 20 June.

(b) On 30 June, Emily had 20 pieces of jewellery in stock. The pieces had cost her $20 each and she sold them for $75 each. She has determined that the same supplier is now selling those pieces of jewellery for $50 each.

(c) Emily took 12 pieces of jewellery out of her stockpile to give away as Christmas gifts. The jewellery pieces cost $300 and have a market selling value of $600.

(d) Emily gave 10 pieces of jewellery to a creditor, Jewels R Us Pty Ltd, in satisfaction of a $700 debt. The pieces cost Emily $500 and have a market selling value of $1,000.

(e) The first half of the financial year has been very good for Emily, and she decided to sell all of her remaining stock at a substantial discount at the end of January so that she could replenish her stock with new designs. In a three-day sale, Emily sold all of her existing stock for $15,000. The stock had cost her $5,000 and she would normally have sold it for $24,000.

(f) Following the sale, Emily replenished her stock with new designs from Sri Lanka. These pieces cost her $100 each and she would normally sell them to customers for $175 each. However, she sold 8 of these pieces to friends and family for only $100 as she wanted the jewellery to be seen. She also kept two of the pieces for herself as she really liked the new designs.

(g) At the end of the financial year, Emily determined that she still had 40 of the Sri Lankan pieces in stock.

Advise Emily of her income tax consequences arising from the above information. You may assume that Emily wishes to minimise her income tax liability in the current year.