Multiple Choice
This year, Sarah started a business selling unique kitchen items both in-store and online. She purchased $70,000 of goods during the year. Her ending inventory was $8,000 and she owed suppliers $15,000 at year end, including for all of the ending inventory. For tax purposes, Sarah adopted the cash method and the treatment of inventory as nonincidental supplies. Her deduction for inventory for the year is:
A) $55,000.
B) $62,000.
C) $70,000.
D) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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