Which of the Following Statements About the Uniform Capitalization (Unicap)

question 55

Multiple Choice

Which of the following statements about the uniform capitalization (unicap) rules is false?

• A) The unicap rules determine the annual costs that firms must capitalize to inventory for tax purposes.
• B) The unicap rules may require capitalization of more indirect costs to inventory for tax purposes than for book purposes.
• C) The unicap rules may result in a book/tax difference for cost of goods sold.
• D) The unicap rules apply to all taxpayers with inventory, regardless of size.

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