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Actually they can. It's a cost of doing business. Damaged goods. Stolen goods. Destroyed goods. I asked my CPA and she said they will likely add it to "COGS", Cost Of Goods Sold, and if large enough make a notation in their 10K annual report next year.
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I do not agree with that statement!
These AR's are not:
1) Damaged Goods
2) Stolen Goods
3) Destroyed Goods... This is per as I stated expired or bad food..
Not because you just wanted to have a company bon fire and your product was the only thing available to burn! LOL!
This is NOT for destroying perfectly good profitable product!
You would never get it past the IRS.
4) Cost of Goods Sold...Not on your life!
Get a new CPA!
OR
The CPA wants to try and use it as a inventive expense hoping that the IRS does not question it.
I would NOT want to meet with the IRS and try and convince them that YES I destroyed perfectly good product viable for sale and or the ability to return said product to the manufacturer, thus either option would have recouped moneys to the company.
Instead rather than business income or recouped money for product the business Paid wages and expenses to destroy the product and paid the dumping fee on top of that and I want to show it as a viable business expense! NOT!
Lot's of negative business costs are involved with this business endeavor.
But hold on...
Rather than the expensing above maybe they are thinking of it as a Advertising expense hoping to garner support and produce anti gunner sales!
It's a expensive advertising strategy and novel approach..
Destroy your own product to garner sympathetic sales..
But hey, if all of the investors signed off on this company strategy then all is good..
Take the company hit and hope for the best!
That would be real company greed to say you care when in reality you just want to make a publicity buzz and get people in the store!
If you have to destroy some AR's and suck up to peoples high emotions..
DO IT...Call the media, we have our next marketing campaign..Hey were going down we have to try anything!