Mountain State Ford Truck Sales, Inc., E.P. O'Meara, Tax Matters Person - Page 13




                                       - 13 -                                         

          published by Ford" and for other manufacturers' parts on the                
          basis of "the dealer net prices as incorporated in the latest               
          dealer price lists published by the applicable manufacturer".               
          Nor did Mountain State Ford maintain inventory records which                
          showed the invoice price that it paid for each unit of each type            
          of part (1) delivered and/or returned to it and added to its                
          parts inventory and/or (2) sold by it and removed from that                 
          inventory.  However, Mountain State Ford did maintain other                 
          records, such as accounts payable records and invoices, which               
          listed the invoice price paid by Mountain State Ford for each               
          unit of each type of part delivered to it.                                  
               After 1978, when Ford no longer owned any stock of Mountain            
          State Ford, Mountain State Ford was free to use an engagement               
          letter in employing a C.P.A. to audit its financial statements              
          and prepare its tax returns that was different from the letter              
          that it had previously used when Ford owned stock of Mountain               
          State Ford.  Mountain State Ford also became free to adopt                  
          accounting methods and/or procedures that were different from               
          those which it employed when it was owned by Ford, including its            
          method of valuing its parts inventory on the basis of replacement           
          cost, provided that it sought and received the consent of the               
          Internal Revenue Service before it made a change, inter alia, in            
          that method of valuing its parts inventory.  After 1978, when               
          Ford no longer owned any stock of Mountain State Ford, Mountain             
          State Ford made no attempt to determine whether it could have               
          modified its perpetual inventory recordkeeping system so that it            

Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  Next

Last modified: May 25, 2011