Humphryes Mfg. Co. v. Commissioner
United States Board of Tax Appeals
In 1936 petitioner's issued and outstanding stock consisted, in part, of 8 percent cumulative preferred stock on which undeclared dividends were in arrears. In pursuance of a plan of recapitalization, holders of the 8 percent preferred stock surrendered the stock in exchange for new 6 percent preferred stock and new common stock. The stockholders received a small amount of cash in payment of fractional shares involved in the exchange.
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In 1936 petitioner's issued and outstanding stock consisted, in part, of 8 percent cumulative preferred stock on which undeclared dividends were in arrears. In pursuance of a plan of recapitalization, holders of the 8 percent preferred stock surrendered the stock in exchange for new 6 percent preferred stock and new common stock. The stockholders received a small amount of cash in payment of fractional shares involved in the exchange. Petitioner claims that part of the new preferred stock which was distributed was a stock dividend and that the undeclared dividends in arrears were paid by a…
1Opinion of the Court
THE HUMPHRYES MANUFACTURING COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Humphryes Mfg. Co. v. Commissioner
Docket No. 99261.
United States Board of Tax Appeals
45 B.T.A. 114; 1941 BTA LEXIS 1182;
September 12, 1941, Promulgated
In 1936 petitioner's issued and outstanding stock consisted, in part, of 8 percent cumulative preferred stock on which undeclared dividends were in arrears. In pursuance of a plan of recapitalization, holders of the 8 percent preferred stock surrendered the stock in exchange for new 6 percent preferred stock and new common stock. The stockholders…
2Cases cited3 opinions
- South Atlantic Steamship Line v. CommissionerUnited States Board of Tax Appeals · 1940
- J. Weingarten, Inc. v. CommissionerUnited States Board of Tax Appeals · 1941
- Humphryes Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1941