1. Nick owns a business catching (and selling) rare lobsters, fish and associated equipment. During the year, Nick received cash from sales totalling $420,000 from these activities. Included in the cash received, was an amount of $6,000 relating to lobsters sold in May and June of the prior year. Further, he also sold $500 worth of fish during the year that was unpaid and outstanding at 30 June CY.

Based on the above facts and relevant tax laws, what amount does Nick need to declare as assessable income?

	A	$420,000 in sales as assessable income
	B	$425,500 in sales as assessable income
	C	$414,500 in sales as assessable income
	D	$426,500 in sales as assessable income

2. Now assume Nicks mate, Annie offered to pay for some rare lobsters in cash. She tells him that there is no need to declare the cash as income because it is not traceable by the ATO and therefore it is NANE income.

A. True

B. False

3. At the end of the year, Nick received cash from various customers totalling $5,000 as a thank you for sharing some of his rare lobster finds.

Based on the above facts and relevant tax laws, should Nick declare the $5,000 as assessable income?

	A	Yes the tax man taxes everything
	B	No its a windfall gain
	C	Yes it relates to his business activities
	D	No its a gift

4. Nick uses his personal car to transport heavy and bulky equipment that is essential for his lobster catching activities from home to various work/catching sites.

Based on the above facts and relevant tax laws, will Nick be able to claim a deduction for driving his personal car from home to the work/catching sites?

A. Yes

B. No

5. Nick has a warehouse to hold his stock. He provides you with the following closing stock valuations:

Item	30 June CY ($)
Stock on hand (market value)	72,000
Stock on hand (cost)	86,000
Stock on hand (replacement)	93,000

The opening stock value was $66,000.

Based on the above facts and relevant tax laws, what closing stock amount should Nick use, assuming he wants to minimise his taxable income? (select the best answer)

	A	At cost $86,000
	B	At replacement value $93,000
	C	At market value $72,000