Taxes May Be Included in the Cost of Inventories Except

question 18

Multiple Choice

Taxes may be included in the cost of inventories except for those taxes that are:

• A) levied on the inventories by a foreign government.
• B) recoverable by the entity from the taxation authority.
• C) in the nature of import duties.
• D) imposed on the raw materials component of manufactured inventories.

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Definitions:

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Mobile Device

A portable computing device such as a smartphone or tablet, characterized by wireless connectivity and a touchscreen interface.

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