1092 SIXTY-FIFTH CONGRESS. Sess. III. Ch. 18. 1919. W¤A§*;S¤gf;¤¤PB¤*· The term "inadmissible assets" means stocks, bonds, and other mgaamxséitie as- obli ations (other than obligations of the United States), the diviselsséumes mmm dends or interest from which is not included in computing net income, ` but where the income derived from such assets consists in part of gain 01;)-Brent derived from the sale or other disppsition thereof, or where or art of the interest derived from suc assets is in effect included in the net income because of the limitation on the deduction of interest under para aph (2) of subdivision (a) of section 234, a gorrespiopdilpcgpart of tg capital invested in such assets shall not be H _ _ ,_ eeme o madmissi e assets; Ad°"“`b1°°“°°°‘ The term "admissible assets" means all assets other than inadmissible assets, valued in accordance with the provisions of subdivm { mk with vision (a) of section 326, section 330, and section 331. no .,{°c_S (b) _F or the purfposes of this title, the par value of stock or shares shall, 111 the case 0 stock or shares issued at a nominal value or having E0 par yalue, bi deeined ti be this fair market value as of the date or Im, m , ates o issue o suc stoc or s ares. szmefmd P mm Sec. 326. (a) That as used in this title the term "invested ca ital" gis any yeap means (except as provided in subdivisions (b) ancl)(c) of . . section ; $,:;p;`:;r mgb (1) Actual cash bona fide {paid in for stock or shares; ble p;cpmy_ (2) Actual cash value o tangible property, other than cash, _ an bona fide paid in for stock or shares, at the time of such payment, mmh but in no case to exceed the par value of the original stock or shares specifically issued therefor, unless the actual cash value of such tangible property at the time paid in is shown to the satisfaction of the ommissioner to have been clearly and substantially in excess of such grgisg. to be ke ‘ par value, in which case such excess shall be treated as dpaid-in surplus: where included ,,1 Q;- rqmded, That the Commissioner shall keep a reoor of all cases m
¤*¤¤* i¤¤¤¤d which tangible property is mcluded m mvested capital at a value in
excess of the stoc or shares issued therefor, containing the name and address of each taxpa er, the business in which e d, the amoimt of invested capital and net income shown by ills return, the value of the tangib e property at the time paid in, the par value Copy, mq to com of the stock or shares specifically issued therefor, and the amount mss. included under th.is paragraph as paid—in surplus. The Commissioner shall furmsh a copy of such record and other detailed information with respect to suc cases when required by resolution of either Am P ms Hopse gggongress, without regard to the restrictions contained in ’ ’ ‘ ‘ sec ion ; vi§§l°;,`{§n§fd um"` (3) Paid—in or e_amed surplus and undivided profits; not including _ surplus and undivided profits earned during the year; ¤,{§“}‘g§";l°°c§”g’,F{0Q{, (4) Intangible property bona fide paid in for stock or shares prior ¤¤=¤3. 1917- to March 3, 1917, m an amount not exceeding (a) the actual cash value of such property at the time aid in, (b) the par value of the Am, Mm, 3, ,9,, stock or shares issued therefor, or (cg in the aggregate 25 per centum of the par value of the total stock or shares 0 the corporation outstanding on March 3, 1917, whichever is lowwt; (5) Intangible property bona fide paid in for stock or shares on or after March 3, 1917, in an amount not exceeding (a) the actual cash value of such property at the time aid in, (b) the par value of the stock or shares issued therefor, or (cl) in the aggregate 25 per centum of the par value of the total stock or shares 0 the corporation out-
standing at the begmning of the taxable gear, whichever IS lowestr
Provided, That in no case shall the tot amount mcluded under paragraphs (4) and (5) exceed in the aggregate 25 per centum of the par value of the total stock or shares of the corporation outstanding Bommd mpmm at the begimung of the taxable year; but mciuaai. _ (b) As used in this title the term "invested capital" does not include borrowed capital.
