Food and Beverage Manufacturer with Retail Facilities Case Study

Highlights in the Case Study

Originally began production in 1993

Started expanding and acquiring in 2008

Total costs of acquisitions and improvements were $22,224,000

Increased Cash Flow in 1st year- $920,000 

The subject manufacturer is a corporation that originally began production in 1993. Beginning in 2008, the company started a program of expanding their current facilities and acquiring other smaller producers. They also diversified by opening retail facilities and marketing offices, around the country, during this period. Some of these acquired properties were purchased and some were leased.

The total costs of the acquisitions and improvements were $22,224,000. For tax years 2008-2018, the manufacturer erroneously classified some manufacturing personal property, Qualified Leasehold Improvement Property, Qualified Restaurant Property, Qualified Improvement Property, and site improvements as building property.