Graves, Inc. v. Commissioner of Internal Revenue

RIVES, Circuit Judge.

Only a few of the facts fully stated in the report of the opinion of the Tax Court, 16 T. C. 1566, need be repeated here. The authorized capital stock of Graves, Inc., a corporation organized under the laws of Mississippi, was increased early in 1943 from $10,-000.00 to $100,000.00. On April 8, 1943, $40,000.00 of the additional stock was issued to Mrs. Viola Graves, and $50,000.00 to Mrs. Margaret W. Graves. Payment for the stock was made in the following manner. The two Mrs. Graves each executed and delivered two promissory notes to the Sopaco Finance Company,…