- 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) 550Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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