Jason is in the business of importing soccer balls from Taiwan and selling them in Australia. On 25 March, Jason purchased $20,000 worth of soccer balls from Taiwan. Jason did not have ownership of the soccer balls until they were unloaded from an aircraft in Australia on 15th April. In April, Jason took 50 soccer balls from his stock to give to a creditor in satisfaction of a debt of $2,000 that Jason owed to that creditor. In total the soccer balls had cost Jason $1,000 and he usually would have sold them for $2,500. After a few weeks of steady sales, Jason decided to hold a winter sale in May. The sale was a huge success and he completely sold out of stock within a few days. Jason sold the stock for $28,000. The stock had cost him $14,000 in total and he would normally have sold it for $35,000. Following the sale, Jason bought 100 soccer balls which were of a new design. These soccer balls cost $30 each and Jason expects to sell them for $75 each. Because he is so excited about the new design, he keeps one soccer ball for himself.

Advise Jason as to the following:

(a) Is the purchase of the soccer balls deductible? If so, when would he be able to deduct the purchase?

(b) What are the tax implications of Jason taking 50 soccer balls from his stock to give to a creditor in satisfaction of a debt of $2,000?