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Old 11-18-2004, 10:33 PM
doormeister doormeister is offline
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Join Date: Jul 2004
Posts: 17
It depends. If you expense your inventory, as you would most likely do if you do your taxes on a cash basis (as most small businesses do), you would show a loss. If you carry your inventory as an asset, as you would do if you do your taxes on an accrual basis (typical of a large corporation), you would show you books as still having/owning that value, hence no loss.
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