Which of the Following Statements Regarding UNICAP Is Incorrect

question 117

Multiple Choice

Which of the following statements regarding UNICAP is incorrect?

• A)The UNICAP rules result in more costs being included in inventory for tax purposes than for financial accounting.
• B)Taxpayers with gross receipts averaging more than $10,000,000 or more for the prior three years must apply the UNICAP provisions.
• C)Interest must be included in inventory if the property produced is real property or long-lived property.
• D)UNICAP requires that advertising and selling costs be allocated between inventory and cost of sales.

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Definitions:

Phytonadione

A vitamin K1 form, used to treat and prevent vitamin K deficiencies which are essential for blood clotting.

Dorsogluteal

Pertaining to the buttock region, historically a common site for intramuscular injections, though less favored now due to risk of injury.

Vastus Lateralis

The largest and most powerful part of the quadriceps muscle, located on the side of the thigh.

Breastfeeding

The feeding of an infant or young child with milk from a woman's breast, providing optimal nutritional and immune system benefits.