"when purchased even though not sold"

$35,000 4-wheeler side-by-side?

$350 pair of vintage shoes?

The goal is to match income to the costs required to generate that income. I teach this and use an example of Teddy Bears in the closet. When we buy inventory, we turned money (an asset) into Stuff (inventory asset). The money we spent on the Teddy Bears are right there, when I open the closet.