Maverick-Clarke Litho Co. v. Commissioner of Internal Revenue

BORAH, Circuit Judge.

This appeal from the Tax Court involves deficiencies in corporate excess profits taxes for the- taxable years 1942 and 1943. The questions here are whether the Tax Court erred: (1) in sustaining the Commissioner’s refusal to allow as additional equity invested capital the increase of $125,000 in petitioner’s capital stock in the year 1917 and (2) in sustaining the Commissioner’s disallowance as deductions certain additions made by petitioner to his bad debt reserve in the years 1942 and 1943. These questions will be considered seriatim in the light of the facts as found…