Commissioner of Internal Revenue v. Albin C. Halquist and Madeline E. Halquist

KNOCH, Circuit Judge.

The facts in this case are largely stipulated or undisputed. During the taxable years 1951 through 1954, respondents Albín C. Halquist and Madeline E. Halquist, his wife, as a partnership, Halquist Lannon Stone Company (hereinafter called “Halquist”) engaged in the business of removing stone from two quarries in Waukesha County, Wisconsin.

This stone was sold in the form of two products: crushed stone and “dimension” stone 1 of various shapes and sizes. Halquist also bought, processed and sold some dimension stone from other quarries. There was evidence that these stones…