Frank G. Wikstrom & Sons, Inc. v. Commissioner
United States Tax Court
Inventories -- Revaluation -- Section 22 (c). -- The addition of a portion of overhead expenses to the closing inventory cost of merchandise made only on special order was proper in order to clearly reflect income, and it is not necessary to make the same adjustment to opening inventory where the adjustment is made in the petitioner's first taxable period in business and the opening inventory had been acquired in a tax-free exchange and was carried on petitioner's books at…
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Inventories -- Revaluation -- Section 22 (c). -- The addition of a portion of overhead expenses to the closing inventory cost of merchandise made only on special order was proper in order to clearly reflect income, and it is not necessary to make the same adjustment to opening inventory where the adjustment is made in the petitioner's first taxable period in business and the opening inventory had been acquired in a tax-free exchange and was carried on petitioner's books at its predecessor's basis.
1Opinion of the Court
OPINION.
Murdock, Judge:
The Commissioner determined a deficiency of $1,858.13 in income tax for the taxable period ended December 31, 1947. The petitioner alleges that the Commissioner erred by including overhead expenditures in the closing inventories for 1947, 1948, and 1949 without making the same adjustment to the opening inventory for 1947, by not accepting the taxpayer’s consistent method of inventorying and, in the application of his own method, by including in overhead such items as taxes and depreciation which are proper deductions from gross income. The years 1948 and 1949 are…
2Cited by26 opinions
- Photo-Sonics, Inc. v. CommissionerUnited States Tax Court · 1964
- Ezo Products Co. v. CommissionerUnited States Tax Court · 1961
- Dearborn Gage Co. v. CommissionerUnited States Tax Court · 1967
- All-Steel Equipment, Inc. v. CommissionerUnited States Tax Court · 1970
- Reco Industries, Inc. v. CommissionerUnited States Tax Court · 1984
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