In article <w-OdndHcntwnJUDVnZ2dnUVZ_qLinZ2d[at]giganews.com> ,
nish <nisha[at]nunya.org> wrote:
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Yes. It may have to justify the values if it's challenged.

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All of them? Then it doesn't matter, does it?

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If they're in different depreciation categories, it matters.

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If they're all sold, it ends up not mattering (depending on when
they're sold, it might matter on a time unit basis).

Seth

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If company A buys from company B a large lot of products (some new and some
used) for $X, and the invoice does not break down value of individual items
in the lot, is company A allowed to assign values as it likes to those
individual line items?

Assume three different cases in answering this:

1) Items are expensed and used in operations immediately

2) Items are capitalized

3) Items are purchase for resale (inventory)

nish

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >