Quote:
Originally Posted by Dick Linn
I thought the labor hours thing was to establish a fair value where a team might get someone to make an item for free (without participation in the actual fabrication) and only supply the material. I know in the distant past that some teams sponsored by large corporations with ample engineering and machining resources could make a $5,000. gear rack widget out of $100. worth of material, or some such. In a case like that, reporting the fair value of the services makes sense.
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Dick,
The portion of your statement I bolded actually is not the way the rules have been written in the past-they say that
unless the company who makes your part is a sponsor, you must account for the fair market value of their labor cost. If they are a sponsor, you account for nothing except the lowest pro-rated material cost.