Norwich bulletin., 1921-01-21

finished soods. It should include n1er- chandise sold but not billed to the GUS toner at the date of inventory and any goods out upon consignment unless sucn
 roods have been included in the sales for the taxable year. It should also include
 merchandise purchased though not &C., tually received to which title has passed to the purchaser.
 Cost of Market Inventories may be taken either on
 the basis of cost Or cost or market value;
 which ever is lower In the case of a i merchant "cost" means the invoice price | less trade or other discounts, excepting strictly cash discounts approxinating 1 fair rate of interest, which may be de- 1 dtIcted or not at the opinion of the tax payer providing consistent course h
 followed.
 To the net invoice price sholud be add ed to the cost Of transportation and other necessary charges incurred in ac- auiring possession of the goods.
 I In the case of a manufacturer Cost means the cost of raw materials and supplies. expenditures for labor, and iTl- direct costs incident to production, il- cludinE a reasonable proportion of man.
 management expenses but not including
 any cost of selling or securing return on
 capital.
 Ma arket" means the current bid pric'
 prevailing at the date of the inventory
 for thA uarticuiar merchandist TnI burden of proof as to the correctness o the price rests unon the taxpayer Il
 each case. If the cost or maket" basil : is used. each class of goods must b
 iter1ized and the cost or market pric . of each shown separately. The value Q } each item in the inventory may be meas ured by cost or market whichever lower. An entire stock may not be in vertored at cost and also at nrarke | price, and the lower of the two inven u a tofiesf used. No special system of accounts Is pre- . scrfbed by the Bureau of Internal Revt . nue, but the books must show in deta
 inventories, purchase, sales. capital. ir j vestments. and similar Items required l making up an income tax return. Tn < inventory which can not De taken withot ' Asone form of a business. Without it tn II direction in which the business in head N ing. either for success or failure, can nc f. be determined.
 It Taxable Income In the making of an income tax II
 turn for the year 1920, taxpayers ( = every class, business and profession
 man, wage earners, and farmers shoul 3 present to themselves for considerable the following questions: Did you receive any interest on ban . deposits?
 e Have you any property from whic > you receive rent?
 r Did YOU receive any income in u 6 form of dividend or interest from stocl Y or bonds?
 Did you receive any bonuses during u
 year: r. Did you act as broker in any tran
 action from which you received con
 missions?
 Are you interest in any partnership | other firm from which yoE receive af | income. M Have you any income from royalti II or patents?
 Have you any minor children who a is working
 s Have you control of the earnings - such children? If so, the amount mu /, be included in the return of income. ~ sl Has your wife any income from al source whatsoever? If 50, 1t must 1r included in your return or reported dn
 separate return of income. ,n Did you receive any directors fees - trustees fees in the course of the year af Do you hold any office in a bene c- society from which you receive inconn Answers to all these questions a ;r necessary to determine whether a ta ,5 payer has net income sufficient large to require that he file a return.
 single. or if married and not living vi a. wife, and his income for 1920 was q, 0 ye or more, he must make a return regar C. less of whether his income is nontaxat " by reason of his exemptions for depen