TRADING STOCK

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    What defines trading stock?

    Includes items produced or purchased for sale, and consumables for trade.

    How is closing stock calculated?

    Must be included in gross income at cost price or market value.

    What is the implication of opening stock?

    Tax deduction based on last year's closing stock or market value.

    What constitutes cost price of trading stock?

    Total costs incurred to acquire and prepare stock for sale.

    What happens to trading stock obtained at no consideration?

    Included at current market value for tax purposes.

    What is the special recoupment clause for trading stock?

    Recoupment applies when stock is used for non-trade purposes.

    What does section 23F address?

    Delays deductions for stock not disposed of or held at year-end.

    How do debt benefits affect taxable income?

    Must reduce deductions if discounts exceed cost price.

    What defines deemed capital receipts from share disposal?

    Shares held for 3 years are treated as capital upon disposal.

    What distinguishes a share dealer?

    Holds shares as trading stock in a profit-making scheme.