Cleveland Graphite Bronze Co. v. Comm'r
United States Tax Court
1. Taxpayer entered into an agreement with two underwriters covering the purchase by them of its 30,000 shares of newly authorized preferred stock at $ 100 per share, the underwriters to be paid $ 3.50 per share for their services.
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1. Taxpayer entered into an agreement with two underwriters covering the purchase by them of its 30,000 shares of newly authorized preferred stock at $ 100 per share, the underwriters to be paid $ 3.50 per share for their services. Although a public offering of such shares at $ 100 per share was made, the amount of $ 2,895,000, and not $ 3,000,000, is the amount of "daily capital additions," as defined in section 713 (g) (3), I. R. C., for the purpose of computing the excess profits credit based on income, there being no evidence that the stock was actually sold to the public and certificates…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The first question presented is tlie amount of “daily capital addition” to be used in the computation of excess profits credit pursuant to section 713.
In computing its excess profits credit under that section, a taxpayer is entitled to include an amount equal to (A) 95 per centum of its average base period net income, plus (B) an additional amount equal to 8 per centum of the “net capital addition” as defined in subsection (g), or minus (C) 6 per centum of the “net capital reduction” as defined jn subsection (g). The “daily capital addition” which enters into the…
2Cases cited5 opinions
- Waterman v. MacKenzieSupreme Court of the United States · 1891
- United States v. General Electric Co.Supreme Court of the United States · 1926
- Myers v. Comm'rUnited States Tax Court · 1946
- Wisconsin Gas & Electric Co. v. United StatesSupreme Court of the United States · 1944
- American Business Credit Corp. v. CommissionerUnited States Tax Court · 1947
3Cited by1 opinion
- Cleveland Graphite Bronze Co. v. Comm'rUnited States Tax Court · 1948