The taxpayer's modified completed contract method of accounting is essentially an accrual method of accounting. Jud Plumbing Heating, Inc. v. Commissioner of Internal Revenue, 1945, 5 T.C. 127, affd in part, 5 Cir., 1946, 153 F.2d 681. An accrual basis taxpayer must report income when he acquires a fixed right to receive a reasonably ascertainable amount. Continental Tie Lumber Co. v. United States, 1932, 286 U.S. 290, 52 S.Ct. 529, 76 L. Ed. 1111; Food Machinery Chemical Corp. v. Commissioner of Internal Revenue, Ct.Cl., 1960, 286 F.2d 177, cert. denied 368 U.S. 918, 82 S.Ct. 238, 7 L.Ed. 2d 134. As the Supreme Court said in Spring City Foundry Co. v. Commissioner of Internal Revenue, 1934, 292 U.S. 182, 184-185, 54 S.Ct. 644, 645, 78 L.Ed. 1200: "Keeping accounts and making returns on the accrual basis, as distinguished from the cash basis, import that it is the right to receive and not the actual receipt that determines the inclusion of the amount of gross income.
Taxpayer's original petition in this action was in two counts. The first, based on a World War II contract with the Department of the Navy, raised issues which were decided adversely to taxpayer by this court in Food Mach. Chem. Corp. v. United States, 286 F.2d 177, 151 Ct.Cl. 652 (1960), cert. denied, 368 U.S. 918, 82 S.Ct. 238, 7 L.Ed.2d 134 (1961). Only the second count is under consideration here.
It is unnecessary to labor the point that in the years 1945 and 1946 "a proper effort" on plaintiff's part would not have produced claims "approximately in accord" with the ultimate determinations of the Board of Conferees. Plaintiff also relies on Food Machinery Chemical Corp. v. United States, Ct.Cl., 286 F.2d 177. The essential facts in that case are aptly summarized by plaintiff as follows: