Cases petitioners cite involving stolen or worthless inventory likewise miss the mark. For instance, petitioners cite Nat'l Home Prods., Inc. v. Commissioner, 71 T.C. 501, 530-532 (1979) (holding that the taxpayer could reduce its ending inventory in the cost of goods sold computation by the amount of stolen inventory and thus claim the amount of the inventory loss as a part of its cost of goods sold), C-O-Two Fire Equip. Co. v. Commissioner, 219 F.2d 57 (3d Cir. 1955) (holding that the taxpayer could offset a loss in 1946 for obsolete inventory on a totally failed business venture by writing down ending inventory for the year of the loss), rev'g 22 T.C. 124 (1954), and United States v. Kollman, 105 A.F.T.R. 2d 2010-1331 (D. Ore. 2010) (holding that the taxpayer was entitled to a deduction for worthless inventory after Government regulation made certain inventory unmarketable). Petitioners also point out that a taxpayer may write down the cost of ending inventory to "market" in certain situations if the taxpayer is using the lower of cost or market method.

Even as late as August 3, 1960, Bernard H. Stauffer was still highly optimistic not only about being able to sell the inventory on hand, but about resuming profitable operations in the near future. Of course, objective facts as they existed on the pertinent date or dates rather than the beliefs of management may be controlling, cf. C-O Two Fire Equipment Co. v. Commissioner, 219 F.2d 57 (C.A. 3), reversing 22 T.C. 124, but such views, particularly those of top management that has had extensive experience in respect of the product, appear to be relevant in arriving at objective facts relating to salability of the product. We need not discuss the record further in respect of this matter.