Fellows Medical Mfg. Co. v. Commissioner
United States Board of Tax Appeals
1. Shares of stock authorized to be issued by a corporation on March 9, 1917, were not "outstanding" on March 3, 1917. 2. In 1916 the petitioner acquired the assets of a Canadian corporation having a fair market value of $7,000,000 for $200,000 par value capital stock, with an understanding on the part of all concerned that additional shares would be issued to its stockholders as soon as the fair value of such assets had been determined and authority had been obtained for…
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1. Shares of stock authorized to be issued by a corporation on March 9, 1917, were not "outstanding" on March 3, 1917. 2. In 1916 the petitioner acquired the assets of a Canadian corporation having a fair market value of $7,000,000 for $200,000 par value capital stock, with an understanding on the part of all concerned that additional shares would be issued to its stockholders as soon as the fair value of such assets had been determined and authority had been obtained for the issuance of them. Held, that the $200,000 capital stock was issued "at a nominal value" within the meaning of section…
1Opinion of the Court
*236OPINION.
Smith:
The petitioner alleges error on the part of the Commissioner in determining deficiencies for the years 1918 and 1919 upon the ground (1) that the Commissioner erred in finding that the amount which may be included in the invested capital for the purpose of determining profits tax for the years 1918 and 1919, on account of intangible property transferred to the corporation at the time of its organization in 1916, is limited to 25 per cent of $200,000 par value of its capital stock, and that there may not be included in the invested capital on account of such intangible property…
2Cases cited8 opinions
- De Laski & Thropp Circular Woven Tire Co. v. IredellDistrict Court, D. New Jersey · 1920
- Lincoln Chemical Co. v. EdwardsCourt of Appeals for the Second Circuit · 1923
- Cartier v. DoyleCourt of Appeals for the Sixth Circuit · 1921
- R. H. Martin, Inc. v. EdwardsDistrict Court, S.D. New York · 1922
- Empire Fuel Co. v. HaysDistrict Court, N.D. West Virginia · 1924
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