CAF-2 · Chapter 7 · Question 13 of 15
The closing value of a person's stock-in-trade for a tax year shall be determined as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) The lower of cost or net realizable value (NRV).
Explanation
Section 35 clearly states that the closing value of a person's stock-in-trade for a tax year shall be the lower of cost or net realizable value (NRV) of the stock on hand at the end of the year.
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