Bay Co. v. Renegotiation Board
United States Tax Court
During the fiscal year ended September 30, 1952, petitioner (maintaining a completed contract basis of accounting) completed four contracts subject to renegotiation totaling $ 1,998,933.40. Overhead expenses during the years such contracts were in process were allocated to such contracts on petitioner's books on the basis of their direct costs.
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During the fiscal year ended September 30, 1952, petitioner (maintaining a completed contract basis of accounting) completed four contracts subject to renegotiation totaling $ 1,998,933.40. Overhead expenses during the years such contracts were in process were allocated to such contracts on petitioner's books on the basis of their direct costs. Under such overhead allocation method, the profit, per books, on such contracts was $ 346,246.52. Held, petitioner employed a method of allocating overhead on its books and records which properly reflected its costs on the contracts. Held, further,…
1Opinion of the Court
Fisher, Judge:
Petitioner, for the purpose of contesting an order of the Renegotiation Board, upon renegotiation of its contracts, that $50,000 of its profits for the fiscal year ending September 30, 1952, was excessive, by this proceeding, seeks a redetermination thereof.
The contested issues relate to the amount of overhead expenses attributable to these renegotiable contracts, and the extent if any to which the profits were excessive.
FINDINGS OF FACT.
Some of the facts are stipulated and are incorporated herein by this reference.
Petitioner, during all times material herein, was and is a…
2Cases cited2 opinions
- Cohen v. Secretary of WarUnited States Tax Court · 1946
- Stoner Manufacturing Corp. v. Secretary of WarUnited States Tax Court · 1953
3Cited by6 opinions
- Aero Spacelines, Inc. v. United StatesUnited States Court of Claims · 1976
- Camel Manufacturing Co. v. United StatesUnited States Court of Claims · 1978
- LTV Aerospace Corp. v. Renegotiation BoardUnited States Tax Court · 1968
- Bay Co. v. Renegotiation BoardUnited States Tax Court · 1962
- LTV Aerospace Corp. v. Renegotiation BoardUnited States Tax Court · 1968
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