View a copy of Schedule V - Cost of Goods Sold
| 12. | Does the taxpayer own at least one manufacturing establishment? Review the cost of goods sold schedule to compare the labor costs versus purchase costs in inventory. Is labor a resonable percentage? If manufacturing, reasonable labor costs should have been added to the cost of producing the inventory as opposed to simply buying and re-selling it with minimal change. |
| 13. | If the taxpayer is manufacturing goods, are labor costs that were added to the cost of producing inventory also claimed in the computation of the MIC (capitalized labor)? |