Rayville Coal Co. v. Commissioner
United States Board of Tax Appeals
Where subsequent developments show that a material error has been made in the original estimate of mineral reserves, a new estimate may be made and the remaining undepreciated cost of capital assets used in production may be redistributed accordingly.
1Opinion of the Court
OPINION.
Lansdon:
The respondent asserts deficiencies in income taxes for the years 1925 and 1926 in the respective amounts of $16.57 and $189.81.
The petitioner is a Missouri corporation with its principal office and place of business at Rayville, where it has been engaged in mining and selling coal since some time in 1922. On January 1, 1925, the petitioner had depreciable assets which it had capitalized at $44,080.77. Additional similar property was acquired in the years 1925 and 1926 at costs of $2,548.94 and $6,101.34, respectively.
In computing the depreciation allowance for the petitioner…
2Cases cited1 opinion
- United States v. LudeySupreme Court of the United States · 1927
3Cited by2 opinions
- Rust-Owen Lumber Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Rayville Coal Co. v. CommissionerUnited States Board of Tax Appeals · 1930