Made me think of this in the accounting chapter of an aged textbook: --- For decades companies that stockpile old goods have been "writing down" the value of

Made me think of this in the accounting chapter of an aged textbook: --- For decades companies that stockpile old goods have been "writing down" the value of their inventories. Using the accepted principle of evaluating inventory at the lower of two figures--current market price or the cost to produce--they sharply depreciate the stock to reflect the slow movement of dated parts that may never be sold. (...) the Supreme Court ruled... unless... actually scrapped or offered for sale at the reduced price, write-downs are... illegal. The Supreme Court Decision in the case of Thor Power Tool Co. vs. IRS meant that Thor had either to sell or scrap its devalued parts or to revalue its inventory and pay back taxes on the basis of new valuation... accountants advised clients to take no action, and the American Institute of Certified Public Accountants notified members that they need not advise clients to seek permission to conform to the Thor Power Tool decision. The IRS then shocked the accounting community... all improperly devalued inventory still on hand would need to be scrapped or revalued and back taxes paid.¹ ¹ Jerry Giesel, "Product Liability Suits Jump in '80, Court Report Says," Business Insurance, October 6, 1980, p. 1. -- Business Today 3e (1982). Random House, Inc.