Case Name: Appeal of AMERICAN COMPOUNDING CO.
Court: United States Board of Tax Appeals
Jurisdiction: United States
Decision Date: 1925-06-11
Citations: 2 B.T.A. 46
Docket Number: Docket No. 1145
Parties: Appeal of AMERICAN COMPOUNDING CO.
Judges: Before Marquette, Smith, and Trussell.
Reporter: Reports of the United States Board of Tax Appeals
Volume: 2
Pages: 46–48

Head Matter:
Appeal of AMERICAN COMPOUNDING CO.
Docket No. 1145.
Submitted March 30, 1925.
Decided June 11, 1925.
George E. Goodman, G. P. A., for the taxpayer.
J. Arthur Adams, Esq., for the Commissioner.
Before Marquette, Smith, and Trussell.

Opinion:
OPINION.
Trussell:
The taxpayer's business is founded upon the exploitation of a certain secret medicinal formula, and its gross income is derived wholly from sales of preparations compounded according to such formula. This formula is an important capital element and is a material factor in producing profits.