Rhodes-Jennings Furniture Co. v. Commissioner
United States Tax Court
The petitioner in 1939 purchased for cash, at 75 per cent of their face value, accounts receivable of another firm which was discontinuing business. Certain of these accounts were collected in the following year, $5,328.60 of such collections constituting a gain representing the difference between the price paid and the amount collected.
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The petitioner in 1939 purchased for cash, at 75 per cent of their face value, accounts receivable of another firm which was discontinuing business. Certain of these accounts were collected in the following year, $5,328.60 of such collections constituting a gain representing the difference between the price paid and the amount collected. Held: that upon an accrual system of accounting no gain was realized or subject to accrual in 1939 upon the acquisition of the accounts, but such gain was realized upon their collection in the subsequent year.
1Opinion of the Court
Rhodes-Jennings Furniture Co. v. Commissioner.
Rhodes-Jennings Furniture Co. v. Commissioner
Docket No. 13538.
United States Tax Court
1950 Tax Ct. Memo LEXIS 48; 9 T.C.M. (CCH) 1019; T.C.M. (RIA) 50280;
November 9, 1950
The petitioner in 1939 purchased for cash, at 75 per cent of their face value, accounts receivable of another firm which was discontinuing business. Certain of these accounts were collected in the following year, $5,328.60 of such collections constituting a gain representing the difference between the price paid and the amount collected. Held: that upon an accrual system of…
2Cases cited3 opinions
- Palmer v. CommissionerSupreme Court of the United States · 1937
- John Gerber Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Drawoh, Inc. v. CommissionerUnited States Board of Tax Appeals · 1933
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- In Re ProMedCo of Los CrucesUnited States Bankruptcy Court, N.D. Texas · 2002