(a) Goods will be considered purchased or received ``for resale''
for purposes of the inflow test contained in section 3(s)(1) of the
prior Act if they are purchased or received with the intention of being
resold. This includes goods, such as stock in trade which is purchased
or received by the enterprise for resale in the ordinary course of
business. It does not include machinery, equipment, supplies, and other
goods which the enterprise purchases to use in conducting its business.
This is true even if such capital goods or other equipment, which the
enterprise originally purchased for use in conducting its business, are
at some later date actually resold. The distinction is to be found in
whether the goods are purchased or received by the enterprise with the
intention of reselling them in the same form or after further processing
or manufacturing, or whether they are purchased with the intent of being
consumed or used by the enterprise itself in the performance of its
activities.
(b) Goods, such as raw materials or ingredients, are considered
purchased or received by the enterprise ``for resale,'' even if such
goods are purchased or received for the purpose of being processed or
used as parts or ingredients in the manufacture of other goods which the
enterprise intends to sell. For example, where the enterprise purchases
flour for use in baking bread or pastries for sale, the goods will be
considered to have been purchased ``for resale.'' It is immaterial
whether the goods will be resold by the enterprise at retail or at
wholesale.
