Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Redoubt Pty Ltd has provided you with the following information relating to the income year ended 30 June 2018 (all amounts shown exclude GST): The
Redoubt Pty Ltd has provided you with the following information relating to the income year ended 30 June 2018 (all amounts shown exclude GST):
- The company had total sales of $410,000.
- The company made purchases of trading stock totalling $60,000.
- The opening trading stock at 1 July 2017 was $40,000.
- The closing trading stock values at 30 June 2018 are $20,000 using cost, $30,000 using replacement cost or $50,000 using market selling value.
- The company had a balance of depreciating assets in the general Small Business Entity pool as at 1 July 2017 of $82,000.
- On 1 May 2018, the company purchased a second-hand machine that is a depreciating asset for $24,000.
- The company had other tax-deductible expenses of $140,000.
Required
Assuming the company is eligible to use the Small Business Entity system and also that it wishes to minimise its taxable income, work out the likely taxable income of Redoubt Pty Ltd for the income year ended 30 June 2018.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started