The taxpayer was entitled to deduct in the year of acquisition the costs of supplies of stationery and special forms that it had on hand at the end of the year notwithstanding that it included those costs in the inventory shown on its balance sheet. The supplies were not inventory in the normal sense of that word (they had no market value and were of no use to anyone other than the taxpayer) and there was no evidence that the method used by the taxpayer (in writing off the supplies) distorted its financial picture.
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