Kate is an interior designer who has worked with some of the greats and started her new business as a sole trader on 1 July of the current tax year. She operates from a store in beautiful downtown Toowoomba where she offers design advice and also sells various items to beautify the home. During the current income year ended 30 June, Kate advises that her accounts show the following:

• Sales proceeds received for the sale of items from the store $70 000.

• Purchase of trading stock costs $34 000.

• Fees received for advice on interior design work $140 000.

• Amounts owing to her as at 30 June for items of trading stock sold on credit $8000.

• Amounts not yet billed to customers for advice given prior to 30 June $16 000.

• Trading stock on hand at the current year ended 30 June valued at cost of $9000 where there was no opening stock on hand at 1 July.

What amount should Kate include in her assessable income for the current tax year ended 30 June?

Select one:

1. $79 000.

2. $218 000.

3. $243 000.

4. $219 000.

5. $227 000.