Helen Sophie Schroeder - Page 10

                                           - 10 -                                            
                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                                         




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011