In the return with my business, I have a beginning Inventory that was carried over from previous year. Then when I put in an ending Inventory (which is a higher amount than the beginning Inventory because we have purchased and accumulated more inventory in the year), the Income & Adjustments amount in the tax summary increased by the difference of the inventory? The inventory is not a sales receipts amount so why would it be added to my income?
Could you explain?
Thanks,
