Victory Glass, Inc. v. Commissioner
United States Tax Court
Bondholders of a previous corporation, pursuant to a plan for organization of a new corporation and exchange of preferred stock for bonds, accepted therefor preferred stock in petitioner, the new corporation, in the amount of par value of the bonds, and interest, after the former corporation had been placed in receivership and its assets, securing the bonds, acquired by the petitioner subject to the lien of the bonds, from the trustee for the bondholders, the purchaser of…
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Bondholders of a previous corporation, pursuant to a plan for organization of a new corporation and exchange of preferred stock for bonds, accepted therefor preferred stock in petitioner, the new corporation, in the amount of par value of the bonds, and interest, after the former corporation had been placed in receivership and its assets, securing the bonds, acquired by the petitioner subject to the lien of the bonds, from the trustee for the bondholders, the purchaser of the assets for a nominal amount at a foreclosure sale. Held, that, under section 718 (a) (2) of the Internal Revenue Code,…
1Opinion of the Court
OPINION.
Disney, Judge:
The issues relate to the assets acquired from the trustee on April 1, 1937. The property was taken up on the books of petitioner at the cost figure of $38,163.38 (as adjusted after the original entry), which amount is equal to the face amount of the first mortgage bonds exchanged for preferred stock and interest thereon, plus tax liens and cost of execution in the foreclosure proceedings.1 Later petitioner wrote up the assets to $115,777.47, an increase of $77,614.09.
In its returns the petitioner claimed equity invested capital and depreciation for the assets on the…
2Cases cited6 opinions
- LaBelle Iron Works v. United StatesSupreme Court of the United States · 1921
- Difco Laboratories, Inc. v. CommissionerUnited States Tax Court · 1948
- Liberty Mirror Works v. CommissionerUnited States Tax Court · 1944
- McKay Products Corp. v. CommissionerUnited States Tax Court · 1947
- Brown Shoe Co. v. CommissionerUnited States Tax Court · 1948
1 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Western Maryland Railway Company v. United StatesDistrict Court, D. Maryland · 1955
- Victory Glass, Inc. v. CommissionerUnited States Tax Court · 1948
- Victory Glass, Inc. v. CommissionerUnited States Tax Court · 1951