Kraft Foods Co. v. Commissioner
United States Tax Court
1. National Dairy, in a lump-sum purchase, acquired the assets and business of Kraft-Phenix Cheese Corporation, an Illinois corporation paying therefor $ 78,338,412.84 in common stock, bonds, and cash, plus the assumption of liabilities of $ 2,801,148.72. Except for a minor portion of the assets not exceeding $ 13,051,179.77 in value or cost, National Dairy immediately thereafter transferred the Kraft assets and business to petitioner, receiving in return 20,000 shares, $…
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1. National Dairy, in a lump-sum purchase, acquired the assets and business of Kraft-Phenix Cheese Corporation, an Illinois corporation paying therefor $ 78,338,412.84 in common stock, bonds, and cash, plus the assumption of liabilities of $ 2,801,148.72. Except for a minor portion of the assets not exceeding $ 13,051,179.77 in value or cost, National Dairy immediately thereafter transferred the Kraft assets and business to petitioner, receiving in return 20,000 shares, $ 2,000,000 par value, of petitioner's stock, which shares were and continued to be all of petitioner's outstanding shares.…
1Opinion of the Court
OPINION.
Turner, Judge:
The first question is the basis to petitioner for depreciation or amortization of the patents and applications for patents which were among the assets acquired by it from National Dairy in exchange for its capital stock. The parties are agreed that the basis therefor in the hands of petitioner is the cost to National Dairy of the patents and applications for patents in the transaction whereby National Dairy, in a lump-sum or package deal, acquired the business and assets of Kraft (Ill.). The facts show that the consideration so paid by National Dairy in the acquisition…
Also in this document: Dissent.
2Cases cited22 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Higgins v. SmithSupreme Court of the United States · 1940
- Dobson v. CommissionerSupreme Court of the United States · 1944
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- Patterson v. KentuckySupreme Court of the United States · 1879
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3Cited by5 opinions
- Kraft, Inc. v. United StatesUnited States Court of Federal Claims · 1994
- Simmonds Precision Prods. v. Comm'rUnited States Tax Court · 1980
- Trigon Insurance v. United StatesDistrict Court, E.D. Virginia · 2002
- Kraft Foods Co. v. CommissionerUnited States Tax Court · 1954
- Simmonds Precision Prods. v. Comm'rUnited States Tax Court · 1980