Agway, Inc. v. United States

This tax refund suit for $28,044.19 (and statutory interest) comes 'before the court on cross motions for summary judgment on the sole remaining issue in the case: whether plaintiff’s $43,480 gain on the redemption of preferred stock in an *685agricultural cooperative is taxable as ordinary income or as capital gains (long-term).

The stock that was redeemed in taxpayer’s 1960 fiscal year, at $100 face value per share, was originally issued in 1957, valued by plaintiff and defendant then at $60 per share on audit after extended negotiations, and taken into income at that figure. Plaintiff contends…