Question
XYZ Company, Inc. is a calendar year, accrual basis manufacturer of industrial components. Its first year in operations was 2017. The following is a summary
XYZ Company, Inc. is a calendar year, accrual basis manufacturer of industrial components. Its first year in operations was 2017. The following is a summary of activity for 2017 and 2018 For internal book purposes (there is no GAAP basis financial statements prepared), XYZ uses prime costing for its inventory.
The company also incurs the following costs which are expensed directly in their internal financial statements as period costs:
Assuming they apply the 471 inventory rules and ignoring the application of 263A, what is XYZs Tax deduction for Cost of Goods Sold for 2017? __________________________ Tax basis ending inventory at December 31, 2017? ________________________ Tax deduction for Cost of Goods Sold for 2018?____________________________ T Tax basis ending inventory at December 31, 2018?__________________________ The M-1/M-3 adjustments from book to tax income for 2017?___________________ The M-1/M-3 adjustments from book to tax income for 2018?___________________
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