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Accounting for inventory.

To: Nolan Penney <npenney@mde.state.md.us>
Subject: Accounting for inventory.
From: "T. S. White" <tswrace@pacbell.net>
Date: Wed, 25 Jun 2003 08:01:57 -0700
Cc: spitfires@autox.team.net, triumphs@autox.team.net
References: <sef84aa7.058@mde.state.md.us>
You can write off or depreciate equipment, not inventory. 

>>> "Joe Curry" <spitlist@gte.net> 06/24/03 12:12PM >>>
What state charges "Inventory Tax"?  Inventory costs are part of the
cost of goods sold and are therefore a tax write-off not a tax burden.

The cost of inventory sold is the net effect of the Cost of Goods Sold
section of an income statement.  The remaining inventory is not deducted
from income but remains as an asset on the balance sheet of the company.

The inventory on the balance sheet is subject to inventory tax.  This
tax is imposed by far too numerous to name states, municipalities, and
countries.  

        Regards,
        Tom

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