Inspiration Consol. Copper Co. v. Commissioner
United States Board of Tax Appeals
1. INVESTED CAPITAL. - The respondent erred in reducing the amount of current earnings available for payment of dividends by a tentative tax.
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1. INVESTED CAPITAL. - The respondent erred in reducing the amount of current earnings available for payment of dividends by a tentative tax. Appeal of L. S. Aycrs & Co.,1 B.T.A. 1135., 2. ID. - The petitioner is not entitled to include as a part of its invested capital its depletion reserve. 3. INVENTORIES. - The respondent erred in increasing the petitioner's closing inventory from cost to market where the alleged market was higher than cost. 4. DEPLETION. - Depletion should be computed on the number of pounds of copper sold during the year rather than on the number of pounds produced.
1Opinion of the Court
*1427OPINION.
Geeen:
We will discuss'the issues in the order previously stated.
The first issue is decided adversely to the respondent. Appeal of L. S. Ayers & Co., 1 B. T. A. 1135.
In connection with the second issue the petitioner objects to the respondent’s refusal to include as a part of its invested capital a reserve for depletion in the sum of $5,8.56,644.21. This reserve represents the amount by which the petitioner’s depletable properties had been depleted up to the beginning of the taxable year 1918 on the basis of cost. The petitioner argues that, “ Depletion is in fact and in law not a…
2Cases cited8 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- United States v. LudeySupreme Court of the United States · 1927
- Stratton's Independence, Ltd. v. HowbertSupreme Court of the United States · 1913
- United States v. MitchellSupreme Court of the United States · 1926
- Stanton v. Baltic Mining Co.Supreme Court of the United States · 1916
3 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Sneed v. CommissionerUnited States Board of Tax Appeals · 1934
- Inspiration Consol. Copper Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Kennedy Mining Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Sneed v. CommissionerUnited States Board of Tax Appeals · 1934