Lakeside Irr. Co. v. Commissioner of Internal Rev.

SIBLEY, Circuit Judge.

The taxpayer corporation- in the tax year 1936 was indebted to a stockholder in a large amount long past due. Its president by letter advised her that the corporation wished to sell four named lots of stock it owned in other unrelated corporations and apply the proceeds in part payment of her debt, or if she preferred would transfer the stocks to her for a credit of their market value. By telephone she elected to take the stocks. The directors by a formal resolution on their minutes directed the president to ascertain the market values, and deliver the stocks at one time…