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Summary: In the wild-type and B-mutant hyphae of Schizophyllum commune, acid phosphatase activity was found in association with vacuoles, lipid bodies, and endo-plasmic reticulum. Small granules containing acid phosphatase also occurred in mitochondria and along the nuclear envelope. Both ultrastructural and biochemical studies indicated greater acid phosphatase activity in the B-mutant than in the wild-type hyphae, which suggests that the mutation in the B incompatibility factor increases the production of the acid phosphatase in the mutant hyphac.