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Street Cred Limited (SCL) operates a business selling streetwear clothing.
During the year ended 31 March 2022, SCL invoiced customers for $426,000, of which $46,000 had yet to be received from its customers at balance date. On 19 February 2022, an amount of $3,190 was written off as a bad debt in SCL’s accounting system. The amount was for clothing supplied to another business that was invoiced in September 2021.
On 31 October 2021, SCL received a fully imputed net dividend of $8,700 from Cool Caps Limited (CCL), a wholly owned subsidiary of SCL. CCL is a New Zealand tax resident company that is in the business of manufacturing snapback caps.
SCL’s deductible expenditure was $245,000 for the year ended 31 March 2022.
All amounts are GST-exclusive where applicable.
What is SCL’s taxable income for the income year ended 31 March 2022?
A.$177,810.
B.$189,893.
C.$181,000.
D.$186,510.
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