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it was an abuse of respondent’s discretion, under section 446, to
require petitioner to change from the cash method of accounting
to the accrual method of accounting in order to reflect clearly
the income of petitioner’s oil and gas business.
Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the years in issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
FINDINGS OF FACT
Some of the facts have been stipulated, and the stipulated
facts are incorporated in our findings by this reference.
Petitioner Cross Oil Company, Inc., is an Oklahoma
corporation with its principal place of business in Ponca City,
Oklahoma. Petitioner is engaged in the wholesale and retail sale
of gasoline, diesel fuel, oil, and other petroleum products.
Petitioner sells and distributes a premanufactured product
to its customers. Petitioner’s sales are mostly in bulk form, in
which large orders of petroleum products are loaded at the local
refinery and delivered directly to the customer by petitioner or
by a contract truck hired by petitioner. Petitioner also
maintains an inventory, of generally not more than a 2-1/2 week
supply of products, at its business location. The inventory that
is available for sale at petitioner’s place of business is either
delivered to or picked up by the customers. Petitioner’s
purchases of petroleum products are made as a 10-day net sale
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