Peabody Coal Co. v. COMMISSIONER OF INTERNAL REVENUE

ALSCHULER, Circuit Judge.

Petitioner complains of the redetermination of its federal income taxes for 1921, fixing its deficiency at $122,091.77. The controversy is over petitioner’s undertaking to deduct from gross income the sum of $400,000 as a loss accrued in the taxable year under section 234 (a) (4) of the Revenue Act of 19211 *(42 Stat. 227, 254), or as a debt ascertained to be worthless, and written oft to the extent of $350,000 during the taxable year, under section 234 (a)' (5). 1 The same facts apply to both propositions, save that under (5) only $350,000 could be deducted, as the…