Live Bees - Asset or Expense how to claim

[pbrienesse]

I am a beekeeper. Each year I buy new bees. sometimes they make it through the winter sometimes they dont. How do I expense them? are they an expense or a depriciable asset? If they are an expense what category? Cost of goods sold?

[naztax · Accepted solution]

Since they can possibly die during the winter, we recommend claiming them as supplies. Hope this helps.