-25-
Taxpayer elects to use the October Producer Price Index
report as a representative month for selecting indexes.
Such election is allowed under Reg. 1.472-
8(e)(3)(iii)(C).
Except for the IPI computation method that Consolidated
elected to use in the 1982 Form 970 in calculating its dollar-
value LIFO pools since the end of its taxable year 1982,
Consolidated has consistently applied Consolidated's LIFO method
(i.e., the LIFO inventory method described in the 1980 Form 970)
during all relevant periods.
At the time of a sale of remanufactured automobile parts to
one of its customers, for each such part, Consolidated made an
entry increasing (1) its "sales (exchange amount)" by the
exchange amount that was part of the remanufactured automobile
part sales price, (2) its "sales (core amount)" by the core
amount that was the remaining part of that sales price, and
(3) its "customer account receivable" by the remanufactured
automobile sales price (i.e., the sum of those two amounts). At
the time at which that customer decided to and did deliver
customer cores to Consolidated, for each such core, Consolidated
made an entry decreasing its "sales (core amount)" and its
"customer account receivable" by the core credit amount.
At the time Consolidated purchased a core supplier core, it
charged the cost of that core directly to cost of goods sold.
Deloitte & Touche and Pierce, Faris & Co., Chartered audited
Consolidated's 1990 financial statements and 1991 financial
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