Re: Synopsis of forces and events leading to '48-'50 styling

Posted by MJG On 2020/3/24 10:51:01

First off, not an expert on 1946 GAAP accounting however, expensing tooling costs for later production would be distorting period costs and not done. Normally, tooling costs with a useful life greater than one year are capitalized and expensed when used. The 21st series though had only seen use for the '41 and abbreviated '42 production cycles - that tooling would have been expensed then. If they were damaged during the war (as read here) and required reworking that would have been absorbed in '46 and for abbreviated production run in '47. The Ultramatic may have been treated as R&D expense and expensed as incurred in the current period - if it had an unknown future use / success. Just my two cents...