Fred has a business of selling computers taking orders online and customers click and collect during

Covid 19 in Sydney. Most customers pay at the time of delivery. His sales for the year ending 30th June

2021 were $3,500,000

During the year ended 30th June 2021 purchases of computers were $1,500,000 and at 30th June 2021 s

n hand was $400,000. Lenny's closing stock for the year ended 30th June 2021 was $300,000.

explain the rules applicable to trading stock and calculate the income he should declare in relation to

fact as stated above for the year ending 30th June 2021