Lamm Lumber Co. v. Commissioner

1. Taxpayer on the accrual basis is entitled to accrue the value of certain equipment in the year the right to receive it becomes fixed, notwithstanding actual delivery is not made until a subsequent year when all controversies respecting possession and title are settled. 2. On account of the critical financial condition of petitioner corporation its president was allowed to withdraw only $10,000 of his $24,000 salary, and the remainder was carried as an account payable. Held, under the facts the accrued salary of $24,000 was deductible as an ordinary and necessary business expense incurred…