What COST OR MARKET, WHICHEVER IS LOWER means: This phrase is used in reference to inventory valuations. Most taxpayers prefer to use "cost or market, whichever is lower" as a basis for valuing their inventories because this method affords an opportunity to take advantage of a drop in the market so that profits can be reduced accordingly before disposition of the goods. If "cost" only is used, a drop in the market cannot affect the income until the merchandise is sold. Either method is acceptable, but the one adopted must be followed unless the IRS grants permission for a change.
- Definition Custodial Parent:
- Dictionary The parent with whom a child lives for the greater part of the year cost or market, whichever is lower definition.
- Definition Class Life Asset Depreciation Range (CLADR):
- Dictionary A system of depreciation used to depreciate assets placed in service prior to January 1, 1981 cost or market, whichever is lower explain.
- Definition Cost Depletion:
- Dictionary recovering the taxpayer's investment in natural resources or timber. The cost is recovered proportionately as the resource is extracted or the timber harvested. Also see "Percentage cost or market, whichever is lower what is.
- Definition Cost Of Goods Sold:
- Dictionary plus direct purchases, direct labor costs, and overhead costs less withdrawals for personal use and ending inventory. Sole proprietors compute their cost of goods sold in Part III of Schedule C cost or market, whichever is lower meaning.
How works Cost or Market, Whichever Is meaning in Tax definitions C .
