Justus & Parker Co. v. Commissioner
United States Board of Tax Appeals
Where a perpetual inventory is kept at cost and adjusted at the end of each year to "cost or market, whichever is lower," in such adjustment depreciated or obsolete merchandise may be included at its actual value as determined by officials of the taxpayer experienced in the business and thoroughly familiar with the merchandise and its value.
1Opinion of the Court
*129OPINION.
Van Fossan:
The method employed by the petitioner in the valuation of its 1920 closing inventory is “ cost or market, whichever is lower,” one of the bases of inventory valuation designated by the Commissioner in his regulations adopted pursuant to the provisions of the Revenue Act of 1918. (See section 203 of Revenue Act of 1918 and articles 1582 et seq. of Regulations 45.) It is conceded by the respondent that the petitioner has the right to reduce its 1920 closing inventory, taken at original cost, for changes in market value and for obsolete merchandise, but he contends that the…
2Cited by11 opinions
- D. Loveman & Son Export Corp. v. CommissionerUnited States Tax Court · 1960
- Thor Power Tool Co. v. CommissionerUnited States Tax Court · 1975
- E. J. Scheer, Inc. v. CommissionerUnited States Tax Court · 1949
- S. Weisbart & Co. v. CommissionerUnited States Tax Court · 1964
- Carmichael Tile Co. v. CommissionerUnited States Tax Court · 1950
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