A. Harris & Co. v. Lucas

FOSTER, Circuit Judge.

In this case there is no dispute as to the material facts. It appears that petitioner is a Texas corporation operating a department store in Dallas, Tex., selling at retail dry goods, dresses, shoes, and other articles usually handled by a retail store of that class. In 1916, in order to avoid bankruptcy, it eiféeted a compromise with its creditors, other than the banks, whereby 50 cents on the dollar was accepted by them in full settlement of claims aggregating over $130,000. In making its returns for 1916, petitioner accounted for the balance of the obligations…