Flatpack Furniture Limited (FFL) imports furniture and distributes it to retail stores around New Zealand....
60.1K
Verified Solution
Link Copied!
Question
Accounting
Flatpack Furniture Limited (FFL) imports furniture and distributes it to retail stores around New Zealand. Sian owns 100% of the shares in FFL. The following information relates to FFL's trading stock for the year ended 31 March 2022:
Item
Amount $
Opening stock on hand
180,000
Closing stock on hand
121,000
Total purchases during the year
860,000
Wages and other deductible expenses
150,300
These amounts are exclusive of GST.
Included in the $860,000 spent on purchases is $30,000 spent on day beds that FFL paid for in the 2022 income year, but which were delivered on 14 April 2022.
Sales of trading stock for the 2022 income year total $1,850,000.
Also included in the $860,000 spent on purchases is the amount spent on a number of ottomans that FFL purchased from Ottoman Empire Limited (OEL), which had excess supply. The market value of the ottomans was $6,800, but as OEL is owned by Sian's friend, FFL paid only $5,100. All the stock was sold by year end.
What is FFL's taxable income/(loss)?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
