Mutual Chem. Co. v. Commissioner
United States Board of Tax Appeals
1. That portion of petitioner's inventory of raw materials on hand at December 31, 1918, required to fill firm sales contracts for finished goods on that date must be priced at cost in determining net income for that period. 2. Petitioner is entitled to have its taxes computed under the provisions of sections 210 and 328 of the Revenue Acts of 1917 and 1918, respectively.
1Opinion of the Court
*582OPINION.
Morris:
The petitioner’s counsel has conceded the correctness of the respondent’s action in reducing invested capital for the years 1917 and 1918 by an amount of income and profits taxes for prior years. Therefore, we shall address ourselves to the second and third allegations of error set forth herein.
The second allegation of error alleged to have been committed is the failure of the respondent to allow as a deduction, in the computation of net income for the year 1918, an inventory adjustment of $406,838.32. At the hearing of this proceeding the petitioner conceded the correctness of…
2Cited by3 opinions
- Bibb Mfg. Co. v. RoseCourt of Appeals for the Fifth Circuit · 1936
- Mutual Chem. Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Space Controls, Inc. v. CommissionerUnited States Tax Court · 1962