Walker v. Commissioner

1. Basis of stock received pursuant to a statutory reorganization held determinable by the average method rather than under the first in, first out rule. Christian W. Von Gunten,28 B.T.A. 702, followed. 2. Where, on the final sale of stock received pursuant to statutory reorganization, the unrecovered basis is ascertainable, that amount should be used to determine the amount of gain rather than to determine the amount that should have been used as the basis in prior sales and apply the remainder as the basis on the final sale. 3. Sale of stock on a "when issued" basis takes place in the year…