THOMAS v. COMMISSIONER

Docket No. 22049-82.

92 T.C. 206 (1989)

PAYNE E. L. THOMAS AND JOAN M. THOMAS, PETITIONERS v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT

United States Tax Court.

Filed February 1, 1989.


Attorney(s) appearing for the Case

Stanley L. Morris, for the petitioners.

Matthew J. Fritz and Jonathan P. Norris, for the respondent.


CHABOT, Judge:

Respondent determined a deficiency in Federal individual income tax against petitioners for 1978 in the amount of $3,302,808. After concessions by petitioners, the issues for decision are as follows:

(1) Whether petitioner-husband's business' method of valuing inventories of books at one-fourth of manufacturing cost immediately on publication, and at zero after 2 years, 9 months, clearly reflects...

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