Reference no: EM133266588

Antiques Galore (AG), a specialty retailer, purchased $560,000 of antiques during the 2021-22 year for sale to retail customers. At the beginning of the year, AG had $230,000 stock on hand and at the end of the year it had $325,000 stock on hand.  The sales revenue of AG for the 2021-22 year of income was $910,000.

One of the antiques purchased in that year was so adored by Jill, one of the partners, that she took it out of stock for her own use and enjoyment. The market value of the item at that time was $3,000.

Included in AG's purchases, but not in its end-of-year stock take, was a consignment of $50,000 of furniture that had not arrived in its store at year's end but for which AG had received a bill of lading.

AG had allowable deductions for rent, electricity and wages of $120,000 for the financial year.

Required:

Calculate the taxable income of AG in the 2021-22 year.