This Year, Yuan Started a Business Selling Computer Parts Both

question 76

Multiple Choice

This year, Yuan started a business selling computer parts both in store and online.He purchased $60,000 of goods during the year via credit card.His ending inventory was $9,000.For tax purposes, Yuan adopted the cash method and the treatment of inventory as deductible when purchased per his books.His deduction for inventory for the year is:

• A)$51,000.
• B)$60,000.
• C)$69,000.
• D)None of these.

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Definitions:

Fixture

An item of personal property that has been attached to land or a building in such a way that it is considered legally to be a part of the property.

Attached Item

denotes an object or document that is physically or electronically linked to another item for reference or clarification.

Implied Warranty

A legal assumption that goods or services sold meet certain quality standards, even if not explicitly stated in a contract.

Latent Defects

Hidden problems or flaws in a property that are not discoverable by reasonable inspection before purchase.