The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1919-02-07
NINTH ARTICLE.
IIUTuIU DfSCt SSION or
gNNENTOUII.

Probably no owner HiNNNf Item fn tho
t1N return VIII prove of such ronerai
nourotn aa tho question Of inventories.
u Be- not beside the mark 10 state that
Me entire success o. fhc governments
fiscal policy depends uron tho inpen-
tories 81 the nations tl~tnaNffa.
~ she preceding article Of this
sefifa refcrred to treasury decision
gUut. which permitted taxpayers ro.
portne fof tNiI to take lnyentotiea
geo cost or % cot o. market, which
over uuH ioWef. Many tlNplt cue fool
derI-Iou that the method adopted
muff De adhered 60 boz H~niaeaueuf
ra1n unless another De- authorized by
lhn C"ummIHHiMifr OF Internal rev
onue." That they viii nov suffer great
loss. To those readers who are labor.
iur under an apprehension that tho
r0mm. Hsionef may De- uufuir ] wish 90
o1sr the following thoughts;
q The commissioner unHnrHtands
hiHurss conditions and Is thoroughly
Iu Hmrafhy wlth aii honest ~tnfraNof.
Ur hos eNfH pr0sed himself uh-
rraI lu mo Interpretation OF tive law
Hrd boo bis prumul Ntiurs of rcHuln-
lions.
d Consistent with hls duties and
lia onth of ofOru ] feet sure inst he
viii not fail 10 rororniae mat tsxpsy-
orr who reported on the hnala OF cost
of lHtT really fepoftcd on tho hasiH
or 'r0si or market. whichever wns
lowor.' because W pfaotcaiis every
tlao cost VIII r%unsldcrahii lower than
WHf Rot on prc. 80. 1917
Aside from tlc commi rHIoucl's ruiz
INKS ard rogafdtoHH uf what inventory
UlsiH wtH employ 90 for fatT. the pro
posed rcNcnu measure provides in
section an8 TINT luVcuturltH snail hp
HN. a. anal. H.M| - .a..H
NHrIH HN the commissioner with tNO
approval OF the secretary may pre-
scribe iH conforming us nUHrly us
mas be- 20 The best accounting prnc-
NCC in the trade or business 81 as
most clearly %roflecunE tho income ."
II should thus be clear that 1918 be-
Fiua % now cporh and that t~nxpnycrH
viii undoubtedly be- permitted 10 re-
port upon The basis Ho ions advocated
nt public accountants ua tho only
correct one. namely. ON the huHiH of
cost or market. w%hich,tof be- lower.
Section zoo of tne proposed law CON
tutUH H most lm1aUHnt amendment
Co American tnE ioglrltuon A. D
pointed out ln H srsCinl article. thus
section provides Tor iuHHaa 'reaultiuE
from oithor tl fhc operation OF o.
business a,nulnft cnfrIrd on hy tho
taxpayer, or tsl the bona Odr sale hy
NN| NN N|"HN ~ N"N"H WN"H W
thludr. equipment OF other facilities,
constructed, instDlled or %ucpuircd by
co., taxpayer on nr after Ami q. 1917.
far tho production OF u%rticluf contrib.
uting Go the prosecution of the pres
ont war
Tho special provisions regarding
mel losHpf, o. summarize hN pre-
tIouu nru,l' ore as follows
7. hUt luai,H which occurred tr~lHl4
asH..N H. .N.HMFH.H NHuWH fNU rFEH# HN
tnit I. thc iHis iua rriurn.
a net loss shown Tor the year
1HIh m.t Gee deducted frnw tho cas-
return Tor 1919
e. 4 mot loan Tor the wear 1919 may
Np deducted f.nm ths not Income ul
iHls ut Amending Che former return
ruI securing n refund uf taxes paid
of H credit WITH r'Huect tu such
uHId Inr lHlh. lf tlp Urt luns Tor
fHfY is HIrHtar tiuu ih' net income
reported Iur IHiN. che 'krtaH nf Furh
1910 not lUsH over th' ust Income luf
iHIt UIHE hc deducted ttuW tlv UHt
.HUuru oi tpeN.
Zoo D.th Yyar subsequent tU
1000. tnr siWr rHln HpuIioH uH Goo 1919
90 other Hotdr U tiu proposed COS
hu IH enacted into law. Hud while H.
auIH.u Iu forDs. D loss'f eff ans
,rIH IUrIuuInH with 1919 mHf Nr
.UI.u .uiu .ius. Iteration boo um,UdIuE
fHe r,tIrH ilr Give pr r'iIng l.Hr Hud
fne preparation oJ tho .,turn iUt
.Hu #H..... HH year
U.uG.ra are Invited to submit thr.I
ftR problems Ip tha editor tlmmuui.
.tIUuH must Doc signed. hut uuuies of
l..t p|uuu,utH WIll not bp published
Answers VIII uuuaHr lt % order ui
H,.Iut OF Inuuir'H. Auirrfs IHN
l.iitoI care of Tho Evening Herald.
o.. e. tu uN srt.nth article. which
nurD.lpi ON Feb. @. 7 advised Nou to
consult last Wednesday article FOR
Iu ushpr 10 ,utr Inquiry. fodnN's
.fIIDlo constitutes BOO part 70 rlrtn'i
.uuit to tno questions urupound,d '}
.uu.
D.. e. U-Am 300 u punnUtih uH how
u calculate ms income tax tor the