Bloomington Limestone Corporation v. United States

SPRECHER, Circuit Judge.

This case concerns the correct method of computing the gross income from mining of taxpayer, an integrated miner-manufacturer of limestone products, for depletion allowance purposes. Because the taxpayer in the taxable years sold only a small quantity of rough block limestone from its mines and shipped the rest to its mills for fabrication processing, it must compute its mining income “constructively” according to Treasury Regulation § 1.613-3 and its predecessor. The district court, 315 F.Supp. 1255, found that the taxpayer had established “representative market or…