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Required: Advise BuildProducts Pty Ltd as to the trading stock implications for the current tax year, on the assumption that it wants to minimise its
Required: Advise BuildProducts Pty Ltd as to the trading stock implications for the current tax year, on the assumption that it wants to minimise its income tax payable for the tax year. BuildProducts Pty Ltd is a small seller of building supplies, and sells mostly doors and window frames. The following transactions are relevant for the current tax year: mation * Purchases of doors: $400,000 * Purchases of window frames: $500,000 * Sales of doors and window frames: $2,500,000 * Closing stock value for the end of the year prior to the current tax year: $1,000,000 * Trading stock values at end of current tax year: * Doors: cost of $500,000, replacement value of $600,000 and market selling value of $900,000 * Window Frames: cost of $600,000, replacement value of $400,000 and market selling value of $800,000
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