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2023 $95,000(at cost); $105000 (at replacement value). What is the correct treatment to account for Marc's change in trading stock level? a) $20,000 assessable income b) $20,000 allowable deduction c) $30,000

2023 $95,000(at cost); $105000 (at replacement value). What is the correct treatment to account for Marc's change in trading stock level? a) $20,000 assessable income b) $20,000 allowable deduction c) $30,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Marc Lijnders operates a licenced bar. During the 2023 income year, Marc recorded the following trading stock balances (excluding GST): Trading stock at 30 June @022 $75000(at cost); Trading stock at 30 June 2023 $95,000(at cost); $105000 (at replacement value). What is the correct treatment to account for Marc's change in trading stock level? a) $20,000 assessable income b) $20,000 allowable deduction c) $30,000 assessable income d) $30,000 allowable dedduction
Transcribed Image Text:Marc Lijnders operates a licenced bar. During the 2023 income year, Marc recorded the following trading stock balances (excluding GST): Trading stock at 30 June @022 $75000(at cost); Trading stock at 30 June 2023 $95,000(at cost); $105000 (at replacement value). What is the correct treatment to account for Marc's change in trading stock level? a) $20,000 assessable income b) $20,000 allowable deduction c) $30,000 assessable income d) $30,000 allowable dedduction
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