Group $3$ True or False:$-$

$15-$If a taxpayer does not know the total amount of proceeds to be received on an installment sale, e$.$g$.$ contingent earn$-$out proceeds, they are precluded from using the installment method of accounting for the sale.

True

False

$16-$Installment sale method cannot be used when the sale of property produces a loss.

True

False

$17-$The avoided cost method must be used to calculate the amount of interest required to be capitalized except for personal property with an estimated production period of one year or less.

True

False

$18-$Lauren owns a building in the town of Ann Arbor that she uses for retail sales. The building contains one floor of retail space with very high ceilings. Lauren pays $$50,000$ to add a stairway and a mezzanine for the purposes of adding additional selling space with her building. The stairway and mezzanine are part of the building structure. The $$50,000$ amount must be capitalized as a betterment.

True

False

$19-$Qualified improvement property may be expensed under Section $179.$

True

False

$20-$Installment sale method is mandatory for cash basis taxpayers but may only be used by accrual method taxpayers if elected.

True

False

$21-$Under a manufacturing burden rate method, indirect costs are allocated to goods produced by the use of predetermined rates intended by the taxpayer to approximate its actual indirect production costs incurred.

True

False