STATE, DEPT. OF REVENUE v. AMOCO PROD. CO.

Nos. 6567, 6568.

676 P.2d 595 (1984)

STATE of Alaska, DEPARTMENT OF REVENUE, Petitioner and Cross-Respondent, v. AMOCO PRODUCTION COMPANY, Respondent and Cross-Petitioner.

Supreme Court of Alaska.

January 6, 1984.


Attorney(s) appearing for the Case

David T. LeBlond, Asst. Atty. Gen., Anchorage, Norman C. Gorsuch, Atty. Gen., Juneau, for petitioner and cross-respondent.

Robert L. Manley and Richard O. Gantz, Hughes, Thorsness, Gantz, Powell & Brundin, Anchorage, for respondent and cross-petitioner.

William B. Rozell, John F. Clough, III, Faulkner, Banfield, Doogan & Holmes, Juneau, for amicus curiae Phillips Petroleum.

Before BURKE, C.J., RABINOWITZ, and MATTHEWS, JJ., and RIPLEY and JOHNSTONE, Superior Court Judges.


OPINION

BURKE, Chief Justice.

Amoco Production Company [Amoco], a wholly owned subsidiary of Standard Oil Company of Indiana, is incorporated in Delaware and licensed to do business in Alaska. Amoco's principal activities in Alaska are the exploration for and the production of oil and gas. Amoco filed its corporate income tax returns for the years 1971 through 1974 using the separate accounting method. Because Amoco's returns showed losses for all four years...

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