Grand Rapids Dry Goods Co. v. Commissioner
United States Board of Tax Appeals
CONSOLIDATED INVESTED CAPITAL. - Company B was organized in 1912, with a paid-in capital of $60,000. It operated at a loss until August 1, 1919, when its stockholders sold all of their stock to Company A for $15,000 cash. Company B paid no dividends prior to December 31, 1919. Held, that Company B should be included in the consolidated invested capital for the year 1919 at $45,000.
1Opinion of the Court
APPEAL OF GRAND RAPIDS DRY GOODS CO.
Grand Rapids Dry Goods Co. v. Commissioner
Docket No. 3642.
United States Board of Tax Appeals
12 B.T.A. 696; 1928 BTA LEXIS 3477;
June 19, 1928, Promulgated
CONSOLIDATED INVESTED CAPITAL. - Company B was organized in 1912, with a paid-in capital of $60,000. It operated at a loss until August 1, 1919, when its stockholders sold all of their stock to Company A for $15,000 cash. Company B paid no dividends prior to December 31, 1919. Held, that Company B should be included in the consolidated invested capital for the year 1919 at $45,000.
Frank E. Seidman, C.P.A.,…
2Cases cited1 opinion
- Grand Rapids Dry Goods Co. v. CommissionerUnited States Board of Tax Appeals · 1928