Russiana is a retailer who in the previous income tax year closed his stock using cost value of $55,000.

Russiana is a retailer who in the previous income tax year closed his stock using cost value of $55,000. During this income year he purchased $150,000 of trading stock and had sales of $220,000 in trading stock. On 30 June 2018 he had $70,000 in trading stock on hand valued at cost.

Assuming that Russiana values his trading stock at cost for tax purposes at the year end, what amount should he include as taxable income for the current year? Explain your answer and where relevant provide legislative and/ or case authority.