Boston Oldsmobile Co. v. Commissioner
United States Board of Tax Appeals
1. INVESTED CAPITAL - NOTES. - Upon the evidence certain interest-bearing promissory notes of solvent makers, paid in for petitioner's capital stock and later paid in full with interest, found to have been in good faith so paid in and to have been worth their face value, and held that petitioner is entitled to include such notes in invested capital from the dates received. 2. INVENTORIES - ADJUSTMENTS. - Petitioner for 1919 took its closing inventory on basis of "cost" and…
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1. INVESTED CAPITAL - NOTES. - Upon the evidence certain interest-bearing promissory notes of solvent makers, paid in for petitioner's capital stock and later paid in full with interest, found to have been in good faith so paid in and to have been worth their face value, and held that petitioner is entitled to include such notes in invested capital from the dates received. 2. INVENTORIES - ADJUSTMENTS. - Petitioner for 1919 took its closing inventory on basis of "cost" and for 1920 on basis of "cost or market." Held, that it can not now adjust its 1919 inventory by valuing only a portion of…
1Opinion of the Court
*117OPINION,
Tiujssell :
In respect to the first issue the record shows that certain stock of petitioner was sold at par for interest-bearing negotiable notes of solvent purchasers given in good faith and worth their face value and that these notes were later paid in full with interest, by the makers. Petitioner is entitled to include the sum of these notes in its invested capital from the date received. Hewitt Rubber Co., 1 B. T. A. 424; Langley & Michaels Co., 9 B. T. A. 1020; Globe Outlet Co., 10 B. T. A. 165; Sheridan Meat Co., 10 B. T. A. 211; Kaufman & Co. v. Bowers, 11 Fed. (2d) 662.
The…
2Cited by1 opinion
- Boston Oldsmobile Co. v. CommissionerUnited States Board of Tax Appeals · 1929