Inventory can be valued using a few different accounting methods, including first In, first out (FIFO) and last in, first out (LIFO).

PnL refers to the financial gain or loss from buying and selling cryptocurrencies. To calculate it, use various method like the FIFO, LIFO, YTD, and more!

FIFO or Specific Identification: Choosing the Best Way to Calculate Cost Basis on Crypto For crypto users who use multiple exchanges or wallets, understanding how the IRS treats cost basis ...

LIFO-FIFO is an accounting method that Fleetio customers can use to determine their organization’s inventory costs.

This is known as the first-in-first-out (FIFO) method, which is often the rule brokers use if no other customer share identification order is given.

You can see the difference when FIFO and Specification Identification methods are applied to the transaction: Under FIFO, the cost basis is $3,000 and results in a $7,000 capital gain.