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Author: RBMunkin Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121569  
Subject: Re: COGS Date: 9/18/2012 12:39 PM
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"That is referring to the Uniform Capitalization Rules mentioned in the paragraph above the statement you quoted."

I guess I'm having a bit of trouble with this distinction. When it says:

"Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities."

I took that to mean that instead of directly expensing a cost that you must add it to COGS. So then when it said:

"This rule does not apply to personal property you acquire for resale if your average annual gross receipts (or those of your predecessor) for the preceding 3 tax years are not more than $10 million."

I thought that might mean that you don't have to bother with COGS.

RB
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