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The taxpayer is a retail business and has performed a stock take and determined the following values in regards to certain stock that has seen

The taxpayer is a retail business and has performed a stock take and determined the following values in regards to certain stock that has seen demand reduce from customers:

  • $160,000 - Net realisable value
  • $200,000 - Stock on hand at cost (including obsolescent stock costing $20,000, although has no value)
  • $340,000 - Market selling value

In regard to the above values, advise the closing stock the taxpayer should choose to minimise the taxable income of the business.

Select one:

a. $200,000

b. $340,000

c. $180,000

d. $160,000

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