Peter carries on a retail business and sells substantial amounts of trading stock in his business. Peter had valued his trading stock on hand at 30 June of the previous tax year at a replacement price...

Peter carries on a retail business and sells substantial amounts of trading stock in his business. Peter had valued his trading stock on hand at 30 June of the previous tax year at a replacement price of $57 000. During the current tax year ended 30 June he purchased $400 000 in trading stock. Peter advises you that the stock on hand at 30 June of the current tax year was valued as follows: At Cost $70 000 At Replacement $80 000 At Market selling value $160 000 Assuming that Peter wishes to minimize his taxable income what amount should he include in his assessable income based on this information for the current tax year ended 30 June? Select one: 1. $103 000. 2. $400 000. 3. $23 000. 4. $13 000. 5. Nil.