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In S. Garber, Inc. v. Commissioner, supra, an accrual basis
taxpayer was in the business of selling custom-made fur coats.
The taxpayer required its customers to make advance payments for
coats. The taxpayer treated these payments as liabilities on its
books and deferred reporting them as income until the coats were
finished. There was no restriction on the taxpayer's use of
these payments, and the taxpayer deposited them in its regular
bank account. Id. at 734. We held that the advance payments for
fur coats to be delivered in the future were includable upon
receipt. Id. at 735-736. All of the events had occurred to
accrue the deposits into income, and no further inquiry was
necessary to determine whether the income had been earned. Id.
at 735.
The instant case is substantially like S. Garber, Inc. v.
Commissioner, supra. Eagle received customer deposits for house
kits. Eagle had an unrestricted right to use these payments upon
receipt. Eagle used them to pay its day-to-day expenses. All
the events had occurred that fixed Eagle's right to receive the
income, and the income could be determined with reasonable
accuracy. See Signet Banking Corp. v. Commissioner, 106 T.C.
117, 128 (1996), affd. 118 F.3d 239 (4th Cir. 1997).
Petitioner points out that some of Eagle's contracts lost
money and that Eagle did not know which contracts would be
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