Challenge Publications, Inc. v. Commissioner
United States Tax Court
Petitioner is a magazine publisher and it sold its magazines to a distributor, which, in turn, consigned the magazines to local wholesalers to distribute to local newsstands. Petitioner billed the distributor for the magazines shipped and agreed to extend credit to the distributor for unsold magazines. Petitioner accrued the aggregate sales price of the magazines it shipped during each respective taxable year as gross income for that taxable year.
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Petitioner is a magazine publisher and it sold its magazines to a distributor, which, in turn, consigned the magazines to local wholesalers to distribute to local newsstands. Petitioner billed the distributor for the magazines shipped and agreed to extend credit to the distributor for unsold magazines. Petitioner accrued the aggregate sales price of the magazines it shipped during each respective taxable year as gross income for that taxable year. Petitioner also accrued as a deduction its estimate of the magazines that it anticipated would be returned to it. Held, petitioner's dealings with…
1Opinion of the Court
CHALLENGE PUBLICATIONS, INC., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Challenge Publications, Inc. v. Commissioner
Docket No. 4393-82.
United States Tax Court
T.C. Memo 1986-36; 1986 Tax Ct. Memo LEXIS 570; 51 T.C.M. (CCH) 342; T.C.M. (RIA) 86036;
January 28, 1986.
Petitioner is a magazine publisher and it sold its magazines to a distributor, which, in turn, consigned the magazines to local wholesalers to distribute to local newsstands. Petitioner billed the distributor for the magazines shipped and agreed to extend credit to the distributor for unsold magazines. Petitioner…
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- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
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