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Materials and supplies 8,300
Other costs 6,900
Subtotal 21,050
Less inventory at end of year 4,200
Total 16,850
Petitioner calculated her beginning inventory by taking the
horses and dogs that she started the year with and assigning the
following values to them:
Crystal (horse) $3,500
Candy (horse) 1,200
Sparky (dog) 150
Wanda (dog) 200
Rascal (dog) 250
Buddy (dog) 220
Rose (horse) 350
Total 15,870
1 Petitioner recorded the total as $5,850.
Petitioner assigned an estimated fair market value to Crystal and
Candy based on replacement value. Crystal was purchased by
petitioner's ex-husband for an unknown amount in 1984. Candy was
not purchased; she was foaled by Crystal. Sparky was purchased
by petitioner in 1991 for $150. Wanda was purchased in 1992 by
petitioner for $200. Rascal was purchased by petitioner in 1991
for $250. Buddy was purchased by petitioner in 1991 for $220.
Rose was purchased by petitioner in 1991 for $350.
Petitioner substantiated $7,100 of the $8,300 subtracted for
materials and supplies on her cost of goods sold schedule for
1992 through her testimony and summary sheets. Petitioner
substantiated all of the $6,900 subtracted for miscellaneous cost
of goods sold through her testimony and summary sheets.
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