The Merchants National Bank of Topeka v. Commissioner of Internal Revenue

McWILLIAMS, Circuit Judge.

Merchants National Bank of Topeka, the taxpayer, constructed a new 16-story bank building at a cost of $5,545,079 and moved into it on July 1, 1969. In 1970 the Bank made additions to the building at a cost of $133,943. On its 1969 corporate income tax return the Bank claimed a half-year’s depreciation for the building as completed on July 1, 1969. On its 1970 return, the Bank claimed a full year’s depreciation on the building as completed on July 1,1969, and a half year’s depreciation for the 1970 additions. The Bank utilized the component method of depreciation,…