My husband has a sole proprietorship for trading cards. He buys packages of cards (10 cards per package) at wholesale price. He opens the packages and then sells the individual cards that are worth money.
1) How do we calculate the cost of goods sold when only one of the cards inside the package is sold? If a package of 10 cards was bought for $5, would I use $0.50 for the individual card or use $5.00 for the package to calculate cost of goods sold?
2) Under the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, does this mean that we do not need to keep inventory? Therefore, the inventory at beginning of year and at end of year will be "0" on Schedule C?
3) What is the advantage/disadvantage to using the TCJA?
Thank you!
