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Unformatted text preview: Under GAAP, three methods are allowed: (1) item-by-item, (2) major inventory groups (e.g., cost of 100s vs. market of 100s), or aggregate inventory. Also, remember that the tax code places a higher burden on the taxpayer before inventory can be written down. Obsolete or other slow moving inventory cannot be written down below replacement cost unless (1) the selling price is reduced & the items are offered for sale to customers, or (2) the inventory is destroyed or otherwise disposed of....
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This note was uploaded on 09/09/2011 for the course TAX 6845 taught by Professor Kelliher,c during the Fall '08 term at University of Central Florida.
- Fall '08