Response to egbeachley:
Re item #1, if you don't agree with Gary's code, then what code do you suggest he use?
Re item #4, I believe that I am correct if Gary uses the "lower of cost or market" to value his ending inventory and checks block 33b (assuming this card is worthless). However, if Gary uses "cost" to value his ending inventory (block 33a)("cost" must be used if Gary is using the "cash" accounting method - see Line F), then I believe that technically he cannot deduct his cost of the worthless card until he actually disposes of it (gives it away or trashes it, if it is truly worthless) - once he does this, its cost would no longer be included in the ending inventory figure.
Re item #6, you said the same thing I did (Line 41 is "inventory at end of year").
Val
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