810-3-11-.01 Inventory Procedures. When the production, purchase, or sale of merchandise is an income producing factor, inventories at the beginning and ending of each taxable year are necessary in order to correctly compute income. In these cases, inventories shall be taken, computed and used in accordance with the methods prescribed or permitted by the Internal Revenue Service pursuant to 26 U.S.C. §§ 263A, 471, 472 and 474 and regulations thereunder.
Author: Ewell
Berry, Ann F. Winborne, CPA, and Ed Cutter, CPA
Authority: §§40-2A-7(a)(5) and 40-18-11, Code of Alabama 1975
History: Effective October 1, 1982. Amended July 27, 1988.
Amended June 19, 1992. Amended: Filed September 18, 1996, effective October
23, 1996. Amended: Filed April 28, 1999, effective June 2, 1999.
