o OTATr.j 77TH CUUINl., 2D SESS.- CH. 619-OCT. 21 , 1942 933 (including a provision of the regulations applicable to a consoli- dated income or excess profits tax return but not including section 112 (b) (7) (9), or (10) or a corresponding provision of As . 88. a prior revenue law), but only if none of such property so received is a stock or a security in a corporation the stock or securities of which are specified in the law applicable to the receipt of such property as stock or securities per- mitted to be received (or which would be permitted to be received if they were the sole consideration) without the recognition of gain. "(b) DEFINITION OF PLUS ADJUSTMENT AND MINUS ADJUSTMENT. - For the purposes of this section- "(1) PLUS ADJUSTMENT. -T he term 'plus adjustment' means the amount, with respect to an intercorporate liquidation, determined to be equal to the amount by which the aggregate of the amount of money received by the transferee in such intercorporate liquida- tion, and of the adjusted basis at the time of such receipt of all property (other than money) so received, exceeds the sum of- "(A) the aggregate of the adjusted basis of each share of stock with respect to which such property was received; such adjusted basis of each share to be determined immediately prior to the receipt of any property in such liquidation with respect to such share, and "(B) the aggregate of the liabilities of the transferor assumed by the transferee in connection with the receipt of such property, of the liabilities (not assumed by the trans- feree) to which such property so received was subject, and of any other consideration (other than the stock with respect to which such property was received) given by the transferee for such property so received. "(2) M sINU ADJUSMENT.- The term 'minus adjustment' means the amount, with respect to an intercorporate liquidation, deter- mined to be equal to the amount by which the sum of- "(A) the aggregate of the adjusted basis of each share of stock with respect to which such property was received; such adjusted basis of each share to be determined immediately prior to the receipt of any property in such liquidation with respect to such share, and "(B) the aggregate of the liabilities of the transferor assumed by the transferee in connection with the receipt of such property, of the liabilities (not assumed by the trans- feree) to which such property so received was subject, and of any other consideration (other than the stock with respect to which such property was received) given by the transferee for such property so received exceeds the aggregate of the amount of the money so received and of the adjusted basis, at the time of receipt, of all property (other than money) so received. "(3) RULES FOR APPLICATION OF PARAGRAPHS (1) AND (2).-In determining the plus adjustment or minus adjustment with respect to any share, the computation shall be made in the same manner as is prescribed in paragraphs (1) and (2) of this subsection, except that there shall be brought into account only that part of each item which is determined to be attributable to such share. "(c) RULES FOR THE APPLICATION OF THIn SECTION.- "(1) STOCK HAVING COST BASIS.- T he property received by a transferee in an intercorporate liquidation attributable to a share of stock having in the hands of the transferee a basis determined to be a cost basis, shall be considered to have, for the purposes of -n - .- I
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