In a retail business, ITCs for merchandise inventory are calculated on the basis of the amount of purchases made in the year rather than the cost of goods sold.

options:

a$)$ False because ITCs for merchandise inventory are calculated on the amount of the cost of goods sold or purchases made in the year, whichever is lesser.

b$)$ False because ITCs for merchandise inventory are calculated on the amount of the cost of goods sold or purchases made in the year, whichever is greater.

c$)$ False because ITCs for merchandise inventory are calculated on the basis of the amount of the cost of goods sold rather than purchases made in the year.

d$)$ True because there is no matching of costs and revenues on current expenditures when claiming ITCs.