BANGOR PUNTA OPERATIONS, INC. v. UNITED STATES

No. 71-1518.

466 F.2d 930 (1972)

BANGOR PUNTA OPERATIONS, INC., Plaintiff-Appellant, v. UNITED STATES of America, Defendant-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided August 2, 1972.


Attorney(s) appearing for the Case

Richard R. Teschner, James A. Urdan, Stephen Z. Surridge, Milwaukee, Wis., for appellant.

Scott P. Crampton, Asst. Atty. Gen., Meyer Rothwacks, Richard W. Perkins, William K. Hogan, Attys., Tax Division, Dept. of Justice, Washington, D. C., David J. Cannon, U. S. Atty., Milwaukee, Wis., for appellee.

Before CASTLE, Senior Judge, and CUMMINGS and SPRECHER, Circuit Judges.


SPRECHER, Circuit Judge.

This appeal involves a dispute between taxpayer and the government over the proper method of accounting for the cost of taxpayer's inventory.

Bangor Punta Operations, Inc., the taxpayer, is a Wisconsin manufacturer of diverse types of engines for many different industries. Because it uses the accrual system of accounting, taxpayer employs inventories in determining its annual net income. The method chosen to allocate production costs...

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