Question
Shelby enterprises imports mannequins from New Zealand and sells them to retail stores in Australia. At 30 June of the current tax year the stock
Shelby enterprises imports mannequins from New Zealand and sells them to retail stores in Australia. At 30 June of the current tax year the stock of mannequins on hand totalled 200. The valuation of these was as follows:
At Cost(FIFO | 350,000 |
At cost (LIFO) | 330,000 |
At Replacement | 420,000 |
At market selling value | 500,000 |
At 30 June of the previous tax year, the company had valued its stock for tax purposes at replacement price of $480 000. Assuming that the company wishes to minimize its taxable income, what amount should it's trading stock adjustment?
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