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will properly preclude entry of summary judgment. Factual
disputes that are irrelevant or unnecessary will not be counted.”
Anderson v. Liberty Lobby, Inc., supra at 248.
Respondent argues that petitioner’s attempt to
recharacterize as repair expenses, expenditures which it had
characterized as capital expenditures, is prohibited under
section 446(e) as an impermissible change in accounting method
because petitioner did not obtain respondent’s consent to
recharacterize the expenditures. Respondent claims that, for
regulatory, financial, and tax accounting purposes, petitioner
consistently followed the regulatory accounting rules and
guidelines to determine which expenditures to capitalize and
which expenditures to expense at Florida Power’s electric plants.
Respondent contends that this consistent treatment constitutes
petitioner’s method of accounting with respect to the
expenditures in issue.
Petitioner argues that its method of accounting was to
deduct expenditures to the extent allowed under section 1.162-4,
Income Tax Regs.,7 and that the regulatory accounting
7Sec. 1.162-4, Income Tax Regs., provides:
Sec. 1.162-4. Repairs.--The cost of incidental
repairs which neither materially add to the value of
the property nor appreciably prolong its life, but keep
it in an ordinarily efficient operating condition, may
be deducted as an expense, provided the cost of
acquisition or production or the gain or loss basis of
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