28 



HARDWOOD RECORD 



October 23. VJ'M 



Dry Stock Ready For Delivery 



REGULAR WIDTH AND LENGTH 



Ash 



Ash 



Ash 



Ash 



Ash 



Cottonwood 



Months Dry 



..No. 1 Com. 4/4 6 



..No. 2 Com. 4/4 4 



..No. 1 Com. 5/ 4 5 



..No. 1 Com. 6/4 4 



..No. 1 Com. 8/4 6 



. .No. 1 Com. 4/4 . . 6 



Qtd. Sap Gum. . 1st & 2nd. .4/4 5 



Qtd. Sap Gum. .1st & 2nd. .6/4 6 



Qtd. Red Gum. .No. 1 Com. 4/4 6 



Plain Red Gum . C. & B 3 '4 8 



Plain Red Gum. 1st & 2nd. .4 4 6 



Plain Red Gum. C. & B 5/4 3 



Months Dry 



Plain Sap Gum. 1st & 2nd. .5 8 5 



Plain Sap Gum . 1st & 2nd . . 3/4 4 



Plain Sap Gum. 1st & 2nd. .4/4 5 



Plain Sap Gum. 1st & 2nd. .5/4. .6tol2. 7 

 Plain Sap Gum. 1st & 2nd. .5/4. 12 to 14. 7 



Qtd. Red Oak. .1st & 2nd. .4/4 10 



Qtd. Red Oak. .No. 1 Com. 4/4 10 



Qtd. Wh. Oak.. No. 1 Com. 4/4 10 



Plain Red Oak.. No. 1 Com. 4/4 7 



Plain Wh. Oak.. No. 1 Com. 4/4 7 



Willow Log Run.. 4/4 7 



Willow Log Run. .5/4 7 



Write or Wire for Prices 



E. SONDHEIMER COMPANY 



MEMPHIS TENNESSEE 



New Rules for Computing Income Tax 



t Continued from page 26) 



ui- treat tbem as current operating expenses, liiit whichever system is 

 adopted must be followed until permission to change to the other system 

 is secured from the commissioner. In the case o£ timber operations all 

 expenditures prior to production for plants, improvements and equipment, 

 and thereafter all major items to plant and equipment, shall be charged 

 to capital account for purposes of depreciation. After a timber operation 

 has been developed and equipped and has reached its normal output 

 capacity, the cost of additional minor items of equipment and the cost of 

 replacement of minor items of worn-out and discarded plant and equip- 

 ment may be charged to current operating expenses, unless the taxpayer 

 elects to write off such expenditures through charges for depreciation ; 

 however, the method adopted must be followed consistently from year 

 to year. 



.•\rt. 232. Not changed. 



Art. 233. Information to be furnished by taxpayer claiming depletion 

 of timl)er. — To the income tax return of the taxpayer claiming a deduc- 

 tion for depiction of depreciation or both there shall be attached a map 

 and statement Form T (Timber) for the taxable year covered by the 

 income tax return. Form T (Timber) requires the following: (a) map 

 showing timber and land acquired, timber cut, and timber and land sold ; 



(b) description of, cost of, and terms of purchase or lease of timber and 

 land acquired; (c) proof of profit or loss from sale of capital assets; (d) 

 description of timber with respect to which claim for loss, if any, is made ; 



(c) record of timber cut ; (f ) changes in each timber account as the result 

 of purchase, sale, cutting, reestimate, or loss; (g) changes in physical 

 property accounts as the result of additions, to or deduction from capital 

 and depreciation; (h) operation data with respect to raw finished mate- 

 rials handled and inventoried ; (i) unit production costs, and (j) any other 

 data which will be helpful in determining the reasonableness of the deple- 

 tion, and/or depreciation deductions claimed in the return. Similar infor- 

 mation is required for certain years prior to the 1919 taxable year from 

 those taxpayers who have not already furnished it. The specific nature of 

 the information required for the earlier year.s is given in detail in "Form 

 T — General Forest Industries Questionnaire for the years prior to 1919." 



Art. 234. Determination of fair marlset value of timber. — Where the 

 fair market value of the property at a specified date, in lieu of the cost 

 thereof, is the basis for depletion and depreciation deductions, such value 

 sball be determined, subject to approval or revision by the commissioner 



upon audit, by the owner of the property in the light of the most reliable 

 and accurate information available with reference to the condition of the 

 property as it existed at that date, regardless of all subsequent changes, 

 such as changes in surrounding circumstances, in methods of exploitation, 

 in degree of utilization, etc. The value sought will be the selling price 

 assuming a transfer between a willing seller and a willing buyer as of the 

 particular date. Such factors as the following will be given due con- 

 sideration : (a) character and quality of the timber as determined by 

 species, age, size, condition, etc.; (b) the 'quantity of timber per acre, the 

 total quantity under consideration, and the location of the timber in ques- 

 tion with reference to other timber; (c) accessibility of the timber (loca- 

 tion with reference to distance from a common carrier, the topography 

 and other features of the ground upon which the timber stands and over 

 which it must be transported in process of exploitation, the probable cost 

 of exploitation, and the climate and the state of industrial development 

 of the locality ; and (c) the freight rates by common carrier to important 

 markets. The timber in question will be valued on its own merits and 

 not on the basis of general averages for regions ; however, the value 

 placed upon it, taking into consideration such factors as those mentioned 

 above, will be consistent with that of the other timber in the region. The 

 commissioner will give due weight and consideration to any and all facts and 

 evidence having a bearing on the market value, such as cost, actual sales 

 and transfers of similar properties, the margin between the cost of pro- 

 duction and the price realized for timber products, market value of stock 

 or shares, royalties and rentals, value fixed by the owner for the purpose 

 of the capital stock tax, valuation for local or state taxation, partnership 

 accountings, records of litigation in which the value of the property has 

 been involved, the amount at which the property may have been inven- 

 toried and/or appraised in probate or similar proceedings, disinterested 

 appraisals by approved methods, and other factors. For depletion purposes 

 the fair market value at a specified date shall not include any part of the 

 value of the land. 



Art.' 235. Determination of quantity of timber. — Each taxpayer claim- 

 ing or expecting to claim a deduction for depletion is required to estimate 

 with respect to each separate timber account the total units (feet board 

 measure, log scale, cords or other units) of timber reasonably known or 

 on good evidence believed to have existed on the ground on March 1, 1913, 

 or on the date of acquisition of the property, as the case may be. This 

 estimate shall state as nearly as possible the numbel' of units which would 

 have been found present by a careful estimate made on the specific date 

 with the object of determining 100 per cent of the quantity of timber 



