-76- that Consolidated paid to acquire a customer core) were determined on the basis of market-related factors, such as supply and demand. We conclude that Redwing Carriers, Inc. v. Tomlinson, 399 F.2d 652 (5th Cir. 1968), does not control our resolution of the issue presented here. Nor does Burrell v. Commissioner, 400 F.2d 682 (10th Cir. 1968), govern our resolution of the inventory accounting issue under section 471 that is involved in the instant case. In Burrell v. Commissioner, supra, the Court of Appeals for the Tenth Circuit, to which an appeal in this case would generally lie, recited the facts on which it relied as follows: In 1962, William P. Burrell,* * * as a sole proprietor, was engaged in reboring automobile engine blocks, called "cores," using them to rebuild automobile engines which he sold to both retail and wholesale customers. In order to maintain an inventory of cores to be rebored, Burrell desired that each customer to whom he sold a rebuilt engine with a rebored core therein, deliver to him the old core in the automobile engine which the rebuilt engine replaced, or a like old core from an automobile engine of the same make. The amount of the bill which Burrell rendered to customers who purchased from him rebuilt engines with rebored cores was for a single amount, which, in fact, was made up of two items. Such items were reflected separately on an invoice furnished to the customer. Item One on such invoice was for the rebuilt engine. Item Two was for the core from the old engine, or a substitute therefor, to be delivered to Burrell by the customer. * * * * * * * When a new core was returned, Item Two was cancelled, although the actual value of the old core did not equal the amount of the Item Two charge. SuchPage: Previous 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 Next
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