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Petitioner calculated her ending inventory by taking the
horses and dogs that she ended the year with and assigning the
following values to them:
Crystal (horse) $3,500
Sparky (dog) 150
Wanda (dog) 200
Buddy (dog) 220
2 pups 130
Total 4,200
Petitioner's 1993 Cost of Goods Sold
Petitioner calculated her cost of goods sold on part III of
Schedule C on her 1993 tax return as follows:
Inventory at beginning of year $4,200
Purchases 600
Cost of labor -0-
Materials and supplies 2,100
Other costs -0-
Subtotal 6,900
Less inventory at end of year 5,500
Total 1,400
Petitioner's beginning 1993 inventory is the same as her ending
1992 inventory. The $600 in purchases consists of the purchase
of the horse Rags. Petitioner substantiated the $2,100
subtracted for materials and supplies through her testimony and
summary sheets.
Petitioner calculated her ending inventory by taking the
horses and dogs that she ended the year with and assigning the
following values to them:
Crystal (horse) $3,500
Midnight (horse) 550
Rags (horse) 600
Winston (horse) 550
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Last modified: May 25, 2011