Which of the Following Statements Regarding UNICAP Is Incorrect

question 1157

Multiple Choice

Which of the following statements regarding UNICAP is incorrect?

• A) Interest must be included in inventory if the property produced is real property or long- lived property.
• B) Taxpayers with gross receipts averaging more than $25,000,000 or more for the prior three years must apply the UNICAP provisions.
• C) The UNICAP rules result in more costs being included in inventory for tax purposes than for financial accounting.
• D) UNICAP requires that advertising and selling costs be allocated between inventory and cost of sales.

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