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Author: BlueGrits Big gold star, 5000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121567  
Subject: Re: Inventory is income? Date: 9/24/2012 11:53 PM
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AJ, I guess I'm now going to reveal why I did so poorly in accounting... your explanation was way over my head.

What the example boiled down to (in my apparently muddled thinking) is that the poster was saying the equivalent of "unsold inventory = taxable income".

If that were true, then each home buyer would record the sales price of the home as income the year of its purchase. After all, you know you're going to sell the home later, right? So if you haven't sold it, it's "unsold inventory".

What am I missing?
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