96
INTERNAL REVENUE CODE OF 1954 (B) UNREALIZED RECEIVABLES OR FEES.—For
purposes
of
subparagraph (A) (iii), the term "unrealized receivables or fees" means, to the extent not previously includible in income under the method of accounting used by the corporation, any rights (contractual or otherwise) to payment for— (i) goods delivered, or to be delivered, to the extent that the proceeds therefrom would be treated as amounts received from the sale or exchange of property other than a capital asset, or (ii) services rendered or to be rendered. (c) ADJUSTMENTS FOR LIABILITIES, ETC.—-In making the
adjust-
ments to the earnings and profits of a corporation under subsection (a) or (b), proper adjustment shall be made for— (1) the amount of any liability to which the property distributed is subject, (2) the amount of any liability of the corporation assumed by a shareholder in connection with the distribution, and (3) any gain to the corporation recognized under subsection (b) or (c) of section 311. (d) CERTAIN DISTRIBUTIONS OF STOCK AND SECURITIES.—
(1) IN GENERAL.—The distribution to a distributee by or on behalf of a corporation of its stock or securities, of stock or securities in another corporation, or of property, in a distribution to which this Code applies, shall not be considered a distribution of the earnings and profits of any corporation— (A) if no gain to such distributee from the receipt of such stock or securities, or property, was recognized under this Code, or (B) if the distribution was not subject to tax in the hands of such distributee by reason of section 305(a). (2) PRIOR DISTRIBUTIONS.—In the case of a distribution of stock or securities, or property, to which section 115(h) of the Internal Revenue Code of 1939 (or the corresponding provision of prior law) applied, the effect on earnings and profits of such distribution shall be determined under such section 115(h), or the corresponding provision of prior law, as the case may be. (3) STOCK OR SECURITIES.—For purposes of this subsection, the term stock or securities" includes rights to acquire stock or securities. (e) SPECIAL
RULE
FOR PARTIAL
LIQUIDATIONS AND CERTAIN
REDEMPTIONS.—In the case of amounts distributed in partial liquidation (whether before, on, or after June 22, 1954) or in a redemption to which section 302(a) or 303 applies, the part of such distribution which is properly chargeable to capital account shall not be treated as a distribution of earnings and profits.. (f) E F F E C T ON EARNINGS AND PROFITS OF G A I N OR LOSS AND OF R E C E I P T OF T A X - F R E E DISTRIBUTIONS.— (1) E F F E C T ON EARNINGS AND PROFITS OF GAIN OR LOSS.—The
gain or loss realized from the sale or other disposition (after February 28, 1913) of property by a corporation—• (A) for the purpose of the computation of the earnings and profits of the corporation, shall (except as provided in subparagraph (B)) be determined by using as the adjusted basis the adjusted basis (under the law applicable to the year in which the sale or other disposition was made) for determining gain, except § 312(b)(2)(B)
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