Clark Dredging Co. v. Commissioner
United States Board of Tax Appeals
,1. Petitioner acquired the assets and assumed the liabilities of another corporation, and, during the taxable year, to assure fulfillment of its obligation, it made a deposit of cash and bonds with sureties on the bond of its predecessor to save the sureties harmless from the demand of the United States for reimbursement of increased costs incurred in completing a contract on which the predecessor had defaulted, The amount of cash and bonds deposited was equal to the face…
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,1. Petitioner acquired the assets and assumed the liabilities of another corporation, and, during the taxable year, to assure fulfillment of its obligation, it made a deposit of cash and bonds with sureties on the bond of its predecessor to save the sureties harmless from the demand of the United States for reimbursement of increased costs incurred in completing a contract on which the predecessor had defaulted, The amount of cash and bonds deposited was equal to the face amount of the bond, and the deposit was made upon the condition that the cash and bonds should belong to the sureties to…
1Opinion of the Court
CLARK DREDGING COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Clark Dredging Co. v. Commissioner
Docket No. 39566.
United States Board of Tax Appeals
23 B.T.A. 503; 1931 BTA LEXIS 1868;
May 29, 1931, Promulgated,1. Petitioner acquired the assets and assumed the liabilities of another corporation, and, during the taxable year, to assure fulfillment of its obligation, it made a deposit of cash and bonds with sureties on the bond of its predecessor to save the sureties harmless from the demand of the United States for reimbursement of increased costs incurred in completing a…
2Cases cited1 opinion
- Clark Dredging Co. v. CommissionerUnited States Board of Tax Appeals · 1931