In Re Appeal of Hoskins Manufacturing Co.

This is an appeal from assessment of a corporation privilege tax. The question is whether “surplus” is to be computed upon actual value of the property or on book value as it was set up in the corporate balance sheet.

The controversy revolves around a single item, which appeared in the corporate balance sheet for 1932, as prepared by auditors, as “marketable investments — at cost less reserve, $671,447.38,” with notation thereunder, “(Approx, market value $378,200).” Financial statements in similar form and notation were made to stockholders and creditors, showing surplus computed from the…