1. A condition for the use of LIFO is that LIFO inventories must be stated at cost.

Select one:

True

False

2. An example of an applicable financial statement for purposes of the repair and maintenance regulations is a financial statement required to be filed with the Securities and Exchange Commission (example: 10-K).

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True

False

3. Regardless of which rules apply (e.g. 263A or 471), inventoriable costs are not to be taken into account until the economic performance rules of Section 461(h) have been satisfied

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True

False

4. If supplies are used in the manufacturing of merchandise, the cost of the supplies is not deductible, but is instead taken into account in determining the inventoriable costs.

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True

False

5. Qualified improvement property may be expensed under Section 179.

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True

False

6. Lauren owns a building in the town of Ann Arbor that she uses for retail sales. The building contains one floor of retail space with very high ceilings. Lauren pays $50,000 to add a stairway and a mezzanine for the purposes of adding additional selling space with her building. The stairway and mezzanine are part of the building structure. The $50,000 amount must be capitalized as a betterment.

Select one:

True

False

7. Under a manufacturing burden rate method, indirect costs are allocated to goods produced by the use of predetermined rates intended by the taxpayer to approximate its actual indirect production costs incurred.

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True

False

8. Installment sale method cannot be used when the sale of property produces a loss.

Select one:

True

False