-79-
record in the present case. For example, the Court of Appeals
for the Tenth Circuit stated that the item two charge "was
purposely made higher than the value of the old core to be
returned, in order to induce customers to return old cores and to
enable Burrell to maintain a needed inventory of old cores." Id.
at 683. It is not clear what the Court of Appeals meant by the
term "value". In any event, in the instant case, we have found
on the record presented to us that Consolidated determined the
price that it was willing to pay to acquire customer cores on the
basis of market-related factors, including supply and demand, and
that it did not pay more to acquire customer cores than the
marketplace in which it acquired those cores demanded. The Court
in Burrell v. Commissioner, supra at 683, also indicated that the
taxpayers' books reflected an account called "Customer Core
Deposits" which "reflected the amounts of Item Two charges which
customers would have to pay in cash if they failed to discharge
them by the return of an old core." In the present case, we have
found that at the time of each sale of a remanufactured auto-
mobile part the core amount, which was part of the remanufactured
automobile part sales price for each such sale, was reflected in
Consolidated's books as an entry increasing "sales (core amount)"
and as part of an entry (i.e., the remanufactured automobile part
sales price) increasing "customer account receivable"; the core
amount was not shown in those books as a deposit.
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