Regarding inventory, the main issue is how to evaluate the closing stock. This may be on FIFO (first in first out), LIFO (last in last out) or average method. This gives cost of inventory. If this cost is more than market value, the latter is taken as value. Otherwise, cost is taken as value.
G. K. Ajmani Tax consultant http://gkajmani-mystraythoughts.blogspot.com/
