And there's the rub. Your end of the year balance sheet should reflect the state of the business. Inventory at cost is not a good indicator, expecially if you grow the inventory for several years. I grow trees. I am in a partnership with my wife. I hire local kids on a part time basis to help on the farm. Labour tasks can be roughly divided into the following categories: 1, Planting, & transplanting trees. 2. Maintenance activities on trees -- mostly weeding, watering, & fertilizing. 3. Infrastructure -- new irrigation systems, displays, pot yardvsupport systems, making pots from pails. 4. Infrastrucutre repair. -- fixing things, lawn mowing, pruning display trees, emptying dead trees from pots. I work with them on these tasks. In addition there are tasks that only I do. Working on the web site, handling sales. I don't track hours on the various sections. I may change activities dozens of times per day. Kids when they come in for a shift may switch activities twice during a shift. (Variety is one of the key attractions I have to get and hold workers) We're in the process of graduating out of the shoebox method of accounting, and are stuck with how to put a value on inventory for tax purposes and for doing an end of the year balance sheet. One advisor tells us that we record inventory at cost of acquisition, since it is an item to be sold. This however seriously degrades the value of our farm at the end of the year. I think my advisor is thinking in terms of a company that buys widgets to resell them essentially unchanged. In my case value is incrementally added by my use of the land and my labour. Seedlings are closer to that of a raw material used to create a manufactured product, where the raw material is insignificant compared to the labour. Let me illustrate with an example: I buy a box of fir seedlings at 40 cents per tree. A week later they are in styrofoam block planters. Freshly planted they have a value of zero to negative. (A fraction will die. The rest cannot be sold at this point, as they are effectively a manufactured product in process.) Depending on the species, and the growing conditions, the seedlings will be in the styroblocks for one to two years. After 2 months in the styroblock, they have rooted well enough that they are saleable. They retail for $5 each, wholesale for about 3.50 each. The next spring they are transplanted to a 2 gallon container. They remain in this container for two years. Some are sold in this container for $8 per foot. Two years pass. The firs, mostly 3-4 feet tall, are transplanted to either #7 pots or #10 grow bags The ones in pots will remain there for 2-3 years and be sold as 6-8 foot trees, the ones in grow bags will remain there for 4-5 years and be sold as 9-12 foot trees. Styroblocks cost $3.75 each for a 15 cell block (25 cents per cell) and can be reused several times. Under ideal circumstances they can be reused about 6 times, but there is also about a 10% per year loss rate from breaking. 2 gallon pots can be reused indefinitely, but some go away with trees in them, and some are damaged. I buy my pots from landscape contractors for $100 per cord. A cord can have from 2000-3500 gallons of pots depending on the manufacturer, how well sorted they are, and the individual details of the mix. I figure roughly 5 cents per gallon for used pots. #7 pots cost me no money up front, but are made on site from salvaged pails. The time to make them is variable, mostly depending on the skill level of the worker and the nature of the previous material in the pail. Converting a pail to a pot is a 4 stage process spanning about 6 weeks. Growbags are used once and are discarded/sold with tree. They are about $3 each. At each stage on the farm, trees need to be watered, weeded, fertilized. The farm is in it's formative stages yet. A lot of work goes into building infrastructure. Time is not tracked by individual task: E.g. I do not know how much time I spent weeding firs this year. Nor do I know how much time Ispent watering firs. Heck, I don't know how much time I spent watering! (I told Laura, my better half who actually does the books: "I can do the work, or I can track what I do. I can't do both.") Suppose that my inventory at a given time is: 400 fir seedlings fresh from the forestry nursery. 350 1 year old fir seedlings in styroblocks. 330 2 year old fir seedlings in styroblocks. 300 3 year old fir seedlings in 2 gallon pots. 150 4 year old fir seedlings in #7 pots 100 4 year old fir seedlings in grow bags. 140 5 year old fir seedligns in # 7 pots. 90 5 year old fir seedlings in grow bags. 130 6 year old fir seedlings in #7 pots. 85 6 year old fir seedlings in grow bags. (If it were only this simple: I have 40 species of trees. I don't have the same number starting each year. Some grow faster than others... Some I start from seed swiped off trees in a local park, or raise from cuttings from stool beds I established for that purpose.) Now the cost of acquiring goods is 40 cents per tree. But some of these trees came in 6 years ago, and have been increasing in value ever since. So 40 cents is unreasonably low. The only other business that has similar situation are whiskey distillers. They ahve a product that they can sell at almost any time, but with age increases in value. The method I suggested to my tax advisor is 1/3 of the retail value of the trees. He doesn't accept this. What is the GAAP way to deal with situations like this? Respectfully, Sherwood of Sherwood's Forests

I am just thrilled that someone wants it. I have no use for it. They are good appliances and nice cabinets. They are in a really bad plan. It's gotten even better. My carpenter has thrown his hat in the ring. He wants to do some horse trading for it. I'll meet with him on Friday to do some planning. I'm leaning towards him. Whatever he tears out, he's going to be the guy who gets to fix it. It was going to cost me $4.00 per square foot to remove the travertine floor. You can't see it, but it's cracked from a bad installation. I may get flooring tear out, soffit tear out, soffit reframing, and some drywall. If I'm really lucky some cabinet installation. We'll see. I'll let you know which way I go and how it turns out.

Help! This cool bar! I'm looking to sell it and need a value. The hexagon in the center swivels 360 degrees, top is smoked glass, strips on front resemble walnut wood grain and chrome stripes. Have you seen anything like it?

IMO you need storage for sure so I would look at adding a buffet on the DR wall and with kids stools are really not practical for eating until they can get on and off a stool by themselves . Get a small round table that has a leaf and IMO when you have money redo the counters so that that peninsula is the same height as the rest of the counters in fact in this case just remove that raised part and then the DR space will be a bit bigger .You could look at Besta from Ikea to put all along that wall on the left it could give you a place for the TV some storage and even a bit of display .