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Mixed Service Costs Information Document Request (IDR) #4

  1. Please provide the study performed to identify the amount of capitalizable mixed service costs, the allocation computation of those mixed service costs between inventory and self constructed assets and identify the methodology used to apportion the costs under your new current method (i.e., specific id, burden rate, etc see Treasury Regs 1.263A-1(f)).
  2. Please provide the amount of capitalizable mixed service costs, the allocation computation of those mixed service costs between inventory and self constructed assets and identify the methodology used to apportion the costs the for book purposes.
  3. Please provide the amount of capitalizable mixed service costs, the allocation computation of those mixed service costs between inventory and self constructed assets and identify the methodology used to apportion the costs under your prior tax method.  
  4. Please provide a reconciliation of any book to tax differences for:
    a. Capitalizable mixed service cost amounts
    b. The allocation of those costs between inventory and self constructed assets
    c. The methodology between book and tax
  5. In order to satisfy the requirements that a proposed allocation method meets the reasonableness standard, you must show that the total costs you actually capitalized do not differ significantly from the aggregate costs that would be properly capitalized using another permissible method pursuant to 1.263A-1(f)(4)(i).  Please provide any comparative analysis that supports the reasonableness standard outlined in Treasury Regulations 1.263A -1(f)(4).   
Page Last Reviewed or Updated: 27-Nov-2013