TAX LAW

Kate is a motor vehicle dealer and had an opening value of trading stock for tax purposes of $120,000 on 1 July 2013. She purchased $600,000 worth of cars during the year and incurred freight and insurance costs of $11,000. She also incurred selling costs of $4,000 and had sales of $900,000. Her stock on hand on 30 June 2014 was: $140,000 (cost price); $110,000 (replacement value); and $130,000 (market selling value). Assuming that Kate wishes to minimise her income, what will her taxable income be for the year ended 30 June 2014