what inventory cost method have you selected
cost
lower of cost or market
lifo too complex for this forum but based on the example you provided since nothing was sold the answer could be the same. see a pro
some other method (?)
let's say using cost method
1/1/ 22 inventory apparent zero
purchases $5 (or + $40 for second
not sold by year-end ending inventory $5 ($45 for both)
same for lower of cost or market since market > cost
tax is added to the purchase cost but as a reseller they should be a way to avoid having to pay this tax and this may involve contacting the supplier to find out what documents you would need to supply
