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merchandise, the court noted that the taxpayer normally kept an
inventory of some 35 caskets, that the caskets were not
necessarily used during the year they were purchased and
occasionally were carried for long periods of time, and that
there was a direct relationship between the magnificence of the
caskets and the cost of the service. Id.
The factors that led the court to conclude in Wilkinson-
Beane, Inc. that the caskets were merchandise are not present in
the instant case. Using the ordinary meaning of the word
"merchandise", we find that the physical properties of the
emulsified asphalt prevent petitioner from holding it for sale.
Unlike the taxpayer in Wilkinson-Beane, Inc., who was able to
hold a stockpile of 35 caskets through multiple annual accounting
periods without diminished utility, the facts in this case show
that from the moment it received the emulsified asphalt from the
supplier petitioner was joined in a race that had an unalterable
predetermined outcome; within 2 to 5 hours the emulsified asphalt
would be rock hard and worthless. Accordingly, under the facts
and circumstances of this case, we cannot find that the
emulsified asphalt is merchandise.
It is irrelevant that the laid asphalt contained the
potential of providing many years of service to its ultimate
beneficiary, the owner of the paved surface. The utility that
must be considered is that afforded the service provider working
with the material. If petitioner was victorious in the race and
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