Toys for Kids is a retail toy store. Most toys are received in boxes and placed on retail shelves by sales clerks. One particular line of dolls represents over 40% of the company's sales. The dolls are received unassembled. Certain sales clerks are assigned to assemble these dolls and place them on retail shelves. The Company's average annual gross receipts are less than $25 million.

What are the issues which Play N Fun must address with respect to the uniform capitalization rules?