inventory assets
(4) Other definitions For purposes of this subsection— (A) LIFO method The term “LIFO method” means the method authorized by section 472. (B) Inventory assets The term “inventory assets” means stock in trade of the corporation, or other property of a kind which would properly be included in the inventory of the corporation if on hand at the close of the taxable year. (C) Method of determining inventory amount The inventory amount of assets under a method authorized by section 471 shall be determined— (i) if the corporation uses the retail method of valuing inventories under section 472, by using such method, or (ii) if clause (i) does not apply, by using cost or market, whichever is lower. (D) Not treated as member of affiliated group Except as provided in regulations, the corporation referred to in paragraph (1) shall not be treated as a member of an affiliated group with respect to the amount included in gross income under paragraph (1).