- 2 - receipts and disbursements method (cash method) to the accrual method.1 FINDINGS OF FACT The parties submitted this case fully stipulated pursuant to Rule 122.2 The stipulation of facts and the attached exhibits are incorporated herein by reference. At the time the petition was filed, petitioner’s principal place of business was in Fremont, California. Petitioner, a California corporation, acquires and transports sand and gravel for its customers, various contractors and developers operating in Northern and Central California.3 Petitioner’s customers use the sand and gravel to construct foundations for streets, houses, and buildings (construction projects). Most of petitioner’s customers depend on petitioner to both acquire and transport the sand and gravel from storage sites to the customers’ construction sites. Some of petitioner’s customers own or acquire the sand and gravel necessary to complete their construction projects without petitioner’s 1 In the notice of deficiency, respondent reduced petitioner’s depreciation, truck, and advertising & promotion deductions by $28,027, which petitioner does not contest in its petition. 2 All section references are to the Internal Revenue Code in effect for the year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. 3 The phrase “sand and gravel” refers to both “sand and gravel” and “sand or gravel”.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011