Ewing-Thomas Converting Co. v. Comm'r
United States Board of Tax Appeals
A taxpayer obligated under firm sales contracts at the end of 1919 to sell merchandise for less than the then market price may not inventory merchandise on hand at the close of the year of a quality suitable for manufacture to fill its contracts, but not specifically appropriated to such contracts, at less than cost.
1Opinion of the Court
*122OPINION.
Smith :
The question in issue in this case is whether a- taxpayer may take its inventory at the close of 1919 at less than cost and at less than market prices where it is under binding firm sales contracts to sell an equivalent amount of merchandise at prices less than the cost and less than the market prices at the close of the year.
The facts in the instant case show that the taxpayer at December 31, 1919, was under binding contracts to deliver to one Clarence L. Meyers, Philadelphia, Pa., 53,198 pounds of mercerized yarn at stipulated prices. The contracts to make the deliveries had…
2Cited by4 opinions
- Bibb Mfg. Co. v. RoseCourt of Appeals for the Fifth Circuit · 1936
- Ewing-Thomas Converting Co. v. Comm'rUnited States Board of Tax Appeals · 1924
- Mutual Chem. Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Space Controls, Inc. v. CommissionerUnited States Tax Court · 1962