Use IRAC format while answering all the questions

Question 1:

Ahmad is a resident of Fiji and a sole trader. On 15^th January 2023, he has $80,000 in his savings account. He realized the Covid19 situation in Fiji and around the world will get worse at least temporarily. He was certain that the Fijian dollar will get very weak against the US dollar in a few months due to the expected lockdown situation. As a result, on 16^th January 2023, he converted his savings of $80,000 and received US$45,000. After a few months, the Fijian dollar was severely hit. On April 28, 2023, Ahmad converted his US$45,000 and received FJD$115,000. This resulted in a gain of FJD$35,000.

Required:

For the year ending, 31^st December 2023, should Ahmad include the realized gain in the total income? Explain. Your answer requires reference to the FITA and case laws.

Question 2:

John is a keen investor who has been successful in making some money on the South Pacific Stock Exchange. He purchased a parcel of 20,000 shares in ATH at $4.10 a share in January 2023. John later sold the shares in less than two months at $5.20 a share. John's accountant believes that the gain of $1.10 per share by John on this share deal will be taxable.

Required:

Comment on the accountant's advice. Your answer requires reference to the FITA and case laws.

Question 3:

A local supermarket retailer, Food for Cheap Limited, recently has a disastrous fire and among the damage was the loss of the entire inventory. The inventory loss was covered by insurance at replacement value. Because of the devaluation dollar, the replacement value was 20% higher than the balance sheet figure.

Required:

Explain the above situation with figures and whether the gain or loss (if any) will be taxable or deductible? Your answer requires reference to the FITA.