She noted that Knight had stated that the government had already had access to these records. Because of that position, it's very hard to understand what Fifth Amendment privilege or attorney-client privilege remain in those records. They were voluntarily-produced business records. One of the things that the Couch decision stands for is that the rights of the parties are fixed at the time that a summons is served. Without further argument, the court overruled Knight's objections and ordered him to produce all records responsive to the summons.
Cost is defined as purchase price.
Market is generally defined as replacement cost. In other words, at the time inventory is taken how much you would have to pay for an identical item. Setting the inventory value on new equipment is relatively simple. That is what the inventory value should be set at. Under the lower of cost or market basis, the only time the inventory value of new equipment should be written down is if you could actually purchase identical new equipment for a lesser amount.