WATSON LAND CO. v. C.I.R.

No. 84-7021.

799 F.2d 571 (1986)

WATSON LAND COMPANY, Petitioner-Appellant, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided September 12, 1986.


Attorney(s) appearing for the Case

Jack R. White, Los Angeles, Cal., for petitioner-appellant.

Michael Paup, Michael J. Roach, Washington, D.C., for respondent-appellee.

Before ANDERSON, POOLE and THOMPSON, Circuit Judges.


THOMPSON, Circuit Judge:

Appellant Watson Land Company ("Watson") appeals from the tax court's determination that federal income tax deficiencies are due from it for taxable years 1973, 1974 and 1975 as a result of an overstatement of its depreciation deductions during those years.

In 1970, Watson began depreciating a number of its industrial buildings by using the composite method of depreciation. This method required not only a determination of the useful...

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