Logourl black
From our private database of 14,200+ case briefs...

Thor Power Tool Co. v. Commissioner

United States Supreme Court
439 U.S. 522 (1979)


Facts

Thor Power Tool Company (plaintiff) concluded that much of its inventory was overvalued and excess. Accordingly, Thor wrote down those items for accounting purposes. However, Thor continued to offer that inventory for sale at its original prices. Thor utilized the lower of cost or market method of inventory accounting, under which a company values its inventory at cost, unless the market value of the inventory is lower. Thor did not present any supporting evidence of actual offers or sales to show that the valuation reflected its income. The Internal Revenue Service (IRS) (defendant) disallowed Thor’s write-down, finding that even though its accounting method was consistent with generally accepted accounting principles (GAAP), it did not accurately reflect Thor’s income. Thor appealed. The United States Tax Court and the United States Court of Appeals for the Seventh Circuit affirmed. The United States Supreme Court granted certiorari.

Rule of Law

Issue

Holding and Reasoning (Blackmun, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 251,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 14,200 briefs, keyed to 189 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.