Otis Steel Co. v. Commissioner
United States Board of Tax Appeals
1. Depreciation rates based on a physical examination of the assets and consideration of the various factors, such as the extent of operations, effect of repairs, etc., indicative of the amount of wear and tear during the period involved, more accurately represent depreciation sustained than do rates computed by a straightline method, for the purpose of determining allowable depreciation deductions as well as adjustments of invested capital on account of depreciation…
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1. Depreciation rates based on a physical examination of the assets and consideration of the various factors, such as the extent of operations, effect of repairs, etc., indicative of the amount of wear and tear during the period involved, more accurately represent depreciation sustained than do rates computed by a straightline method, for the purpose of determining allowable depreciation deductions as well as adjustments of invested capital on account of depreciation sustained in prior years. 2. Good will value of a business purchased determined, for invested capital purposes, by capitalizing…
1Opinion of the Court
OTIS STEEL CO., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Otis Steel Co. v. Commissioner
Docket No. 7520.
United States Board of Tax Appeals
6 B.T.A. 358; 1927 BTA LEXIS 3521;
March 2, 1927, Promulgated
1. Depreciation rates based on a physical examination of the assets and consideration of the various factors, such as the extent of operations, effect of repairs, etc., indicative of the amount of wear and tear during the period involved, more accurately represent depreciation sustained than do rates computed by a straightline method, for the purpose of determining allowable…
2Cases cited1 opinion
- Otis Steel Co. v. CommissionerUnited States Board of Tax Appeals · 1927