C. H. Mead Coal Co. v. Commissioner

*606OPINION.

Matthews :

1. The issue with respect to depreciation falls under two heads — (a) the basis to be used, and (b) the rate to be used in determining the depreciation allowable on steel rails.(a) The petitioner recognizes that cost is the basis to be used in determining depreciation and contends that $335,000 was the cost to it of the depreciable property acquired upon its organization in 1920. Eespondent contends, on the other hand, that the petitioner paid only $235,000 for the property and has calculated depreciation on this basis.

The facts, simply stated, are these:

C. H. and C. S. Mead…