Group $2$ True or False:$-$

$8-$If less than $90$ percent but more than $10$ percent of a mixed service department's costs are capitalized service costs, the taxpayer must allocate the department's costs between deductible and capitalized costs.

True

False

$9-$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.

True

False

$10-$Dealers of real estate may treat real estate as inventory and determine the tax basis of the real estate under the lower$-$of$-$cost or market concept.

True

False

$11-$Cost segregation studies can only be performed on newly constructed buildings.

True

False

$12-$The sale or other disposition of an installment obligation results in the recognition of gain or loss to the seller of the obligation.

True

False

$13-$If incidental supplies are not used in the manufacture of inventory for sale to customers in the ordinary course of business, the cost of the supplies may be deducted as an ordinary and necessary business expense when paid.

True

False

$14-$A condition for using LIFO for tax purposes is it must also be used for financial reporting purposes.

True

False