E. B. & A. C. Whiting Co. v. Commissioner
United States Tax Court
1. The petitioner, a manufacturer of brush materials, developed a new product, utilizing to a small degree waste formerly sold as such. Experimentation in the development resulted in sales during the fiscal year 1940, but continued in that year.
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1. The petitioner, a manufacturer of brush materials, developed a new product, utilizing to a small degree waste formerly sold as such. Experimentation in the development resulted in sales during the fiscal year 1940, but continued in that year. Held, on the facts, that for purpose of computation of excess profits tax, an operating loss of the department devoted to the development of the new product was not a deduction within section 711 (b) (1) (J) (ii), Internal Revenue Code; held, further, that such loss was the consequence of change in type, manner of operation, size, and condition of…
1Opinion of the Court
OPINION.
Disney, Judge:
Three questions are presented for answer. For clarity we separate them by headings:
Compensation of Unsworth.
Petitioner contends that the compensation paid Unsworth was reasonable, considering his unique abilities, the additional services rendered by him during the taxable years, and the normal practice with respect to executive compensation. It says that the increase in salary and bonus from $66,000 in 1941 to $123,000 in the taxable years was in fair proportion to the increased value of his services.
The sales of petitioner in 1942 increased about 43 per cent over 1941…
2Cases cited10 opinions
- William Leveen Corp. v. CommissionerUnited States Tax Court · 1944
- Green Bay Lumber Co. v. CommissionerUnited States Tax Court · 1944
- Arrow-Hart & Hegeman Electric Co. v. CommissionerUnited States Tax Court · 1946
- Surface Combustion Corp. v. CommissionerUnited States Tax Court · 1947
- Harris Hardwood Co. v. CommissionerUnited States Tax Court · 1947
5 more not listed; retrieve them via the Exa API.
3Cited by21 opinions
- Putoma Corp. v. CommissionerUnited States Tax Court · 1976
- Putoma Corp., Successor by Merger of Pro-Mac Company, Petitioners- Cross-Appellants v. Commissioner of Internal Revenue, Cross-AppelleeCourt of Appeals for the Fifth Circuit · 1979
- Federal Machine & Welder Co. v. CommissionerUnited States Tax Court · 1948
- Lorenz Co. v. CommissionerUnited States Tax Court · 1949
- Sommerfeld Machine Co. v. CommissionerUnited States Tax Court · 1948
16 more not listed; retrieve them via the Exa API.