QUESTION 1:

1. Gina is a resident taxpayer who runs an unlicensed caf in Sydbourne(a town exactly halfway between Sydney and Melbourne).

During the last financial year, Gina (a single mum with 2 children aged 8 and 9), had the following transactions:

Sales $280,000

Purchase of Trading Stock $90,000

Stock destroyed when a child set off a fire extinguisher inside the shop: $5,000

Stock donated to Ginas local pub for a raffle night $2,000

Stock donated to the RSPCA (DGR charity) $5,000

Stock at Cost (1 July): $80,000. (30 June): $70,000

(Note, Gina has opted to rely on the Commissioners standard value to account for drawings on trading stock)

With reference to relevant legislation and the above data, calculate Ginas taxable income for the most recent financial year. Be sure to use the most recent figures released by the ATO.