Hutchins Lumber & Storage Co. v. Commissioner

1. Amount of paid-in surplus to which the petitioner is entitled, determined. 2. Two hundred and fifty shares of its stock were donated to the petitioner and thereafter sold for $30,000. Held, that said amount may be included in invested capital. 3. Petitioner purchased $25,000 par value of its own stock for $60,000 cash, $45,000 of which was borrowed. Held, that invested capital should be reduced to the extent that the total amount paid exceeds the current earnings available at the date of purchase. 4. Reduction by Commissioner of petitioner's invested capital for income and profits taxes…