I purchased a business last May for $50,000; $21,283 of that price was for the previous business' inventory and the remaining $28,717 was goodwill. My first question is do I identify this inventory as a startup cost?
My second question is about how TurboTax calculates COGS. I get the COGS formula (pretty straightforward) but the number doesn't match what QuickBooks shows for COGS ($16,431 in TurboTax and $42,735 in QuickBooks). Is that because QuickBooks doesn't factor in ending year inventory? The gross profit in the TurboTax COGS calculation ($41,337) is way higher than what QuickBooks has for gross profit ($15,032). My question is if the numbers TurboTax calculates are correct?
My total sales: $57,768
QuickBooks COGS: $42,735
Ending 2021 inventory: $26,305
EDIT: I am finishing up my taxes for last tax year, 2021
