C-O-Two Fire Equipment Co. v. Commissioner
United States Tax Court
Petitioner manufactured coin-operated music boxes in 1946 and 1947. In 1946 it ceased manufacturing 5-cent boxes, and planned to manufacture boxes that could be operated by a nickel or a dime. In 1947 it made about 800 such boxes.
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Petitioner manufactured coin-operated music boxes in 1946 and 1947. In 1946 it ceased manufacturing 5-cent boxes, and planned to manufacture boxes that could be operated by a nickel or a dime. In 1947 it made about 800 such boxes. Petitioner originally wrote down its closing inventory of boxes and parts as of December 31, 1946, to $ 162,385.08. By amended petition, petitioner claims it is entitled to a further write-down of $ 117,134.54 on the ground that the inventory by the end of 1946 had only a scrap value of $ 45,250.54. Respondent allowed some of the write-down, but disallowed a part…
1Opinion of the Court
OPINION.
Rice, Judge:
Respondent has conceded that petitioner is entitled to adjustments in its closing inventory for 1946 of certain write-downs to reflect the obsolescence of the nickel box. See Mrs. C. J. Barnard, 18 B. T. A, 1022 (1930). Petitioner’s return for 1946 also reflected the obsolescence of parts other than those required to manufacture 10,000 nickel-dime boxes1 which petitioner estimated it could sell. Respondent increased petitioner’s inventory by the value of these items, and included this adjustment in the determination of the deficiencies. But petitioner’s present position is…
2Cases cited2 opinions
- Lucker v. United StatesUnited States Court of Claims · 1931
- Queen City Woodworks & Lumber Co. v. CrooksDistrict Court, W.D. Missouri · 1934
3Cited by1 opinion
- C-O-Two Fire Equipment Co. v. CommissionerUnited States Tax Court · 1954