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virtue of section 168(e)(1), are 5-year property, with a applicable
recovery period of 5 years. See id.
C. Arguments of the Parties
The parties agree that the applicable recovery period for the
furniture and fixtures turns on whether the furniture and fixtures
are described in class 00.11 or class 57.0. Class 00.11 is in the
asset category and class 57.0 is in the activity category. It is
clear that, at least in theory, the same item of depreciable
property can be described in both the asset category and the
activity category. See, e.g., Rev. Proc. 87-56 (class 35.0,
excluding assets in class 00.11 through 00.4). Petitioner,
explicitly, and respondent, implicitly, agree that the furniture and
fixtures are described in both class 00.11 and 57.0. They disagree,
however, on the classification that takes priority.
Petitioner argues that (1) logic and precedent require that the
particular (class 57.0) should prevail over the general (class
00.11), (2) legislative and administrative history support that
result, and (3) a recent ruling of the Commissioner’s, Rev. Rul. 95-
52, 1995-2 C.B. 27, amounts to a concession by the Commissioner with
respect to the issue before us. Respondent relies on (1) the “plain
language” of Rev. Proc. 87-56, (2) administrative history, and (3)
our decision in Norwest Corp. & Subs. v. Commissioner, T.C. Memo.
1995-390.
D. Discussion
In Norwest Corp. & Subs. v. Commissioner, T.C. Memo. 1995-390,
we addressed the same issue presented in this case. We held that
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