Case | HBS Case Collection | December 1984 (Revised July 2005)

Burnet vs. Logan

by Henry B. Reiling


The taxpayer sold mining company stocks and was to be paid royalty as ore was extracted from the corporation's mine. Because the factual issues of whether ore would be extracted and, if so, how much and when were so indeterminate, the court held that the contract right to royalty payments could not be valued. There was no "realization." Recognition would be postponed until payments were actually received.

Keywords: Taxation; Law Enforcement; Asset Management; Valuation; Policy; Mining Industry;


Reiling, Henry B. "Burnet vs. Logan." Harvard Business School Case 285-086, December 1984. (Revised July 2005.)