274 SIXTY-SEVENTH CONGRESS. Sess. I. Ch. 136. 1921. "“‘ ““’ “°'” The term "borrowed ca ital" means mone or other ro e ··s.:¤n;;im¤1.·· bphrrowed, whether represerlted by bonds, noteg, open accd)un1l)s,ri7>¥ o erwise; "t%"‘“"*"“"° ”’ The term "inadmissible assets" means stocks bonds and other sets. 1 1 obliggtions (other than obligations of the United States), the dividen or interest from which IS not included in computing net income, °°‘“°°° °‘““°°°• but where the income derived from such assets consists in part of ain or profit derived from the sale or other disposition thereof, or wgere all or part of the interest derived from such assets is in effect included in the net income because of the limitation on the deduction of interest under paragraph (2) of subdivision (a) of section 234, a corresponding part o_ tl;3 capital invested in such assets shall not be deemed to be madmissi eassets; "‘*°“"”""°‘”°*"‘" 'Hie term " admissible assets" means all assets other than inadmissible assets, valued in accordance with the provisions of subdivision (a) of section 326 and section 331. · ,,,v;:}'§‘,,{’,{,{_°°°°' rm (b) For the PIIIQPOSGS of this title the par value of stock or shares shall, in the case o stock or shares issued at a nominal value or having no (par value, be deemed to be the fair market value as of the date hmmm mm_ or ates of issue of such stock_or shares. surged, pl Sec. 326. (a) That as used m this title the term "invested capital" for any year means (except as provided in subdivision Cb) and (c) Cm, plum of this section) : _ _ blX\:"I10 mime mga- (1) Actual cash bona fide paid in for stock or shares; L,¥_{,,,°§’§,‘§},; (2) Actual cash value of tangible property, other than cash, bona fide pa1d in for stock or shares, at the time of such payment, but m no case to exceed the par value of the original stock or shares specifically issued therefor, unless the actual cash value of such ta ible property at the time paid in is shown to the satisfaction of the%ommissioner to have been clearly and substantially in excess of such PWM par value, m_ which case such excess shall be treated as paid-in uggmzdorzwgwhire surplus: Provided, That the Commissioner shall_ keep a record of ,;..d.q i§”.£w.,§,, 2; all cases ui which tangible property is mcluded in invested capital ”°°"*”¤°d *h°'°'°*· iilteanvalue 1DdC·%1C8SS of the itotgli or shartviels ilssued theref<§ gontaming ame an dress o eac pa er, e usinessmw c engage , the amount of invested capital andy net income shown b the return, the value of the tangible prolgegp at the time paid in, &e par value 0,,9,,8 M wm of the stock or shares spec' c y issued therefor, and the amount sms. ' included under this paragraph as paid—in s Ius. The Commissioner shall furnish a copy of such record and Ether detailed information with respect to suc cases when required by resolution of either House of Congress, without regard to the restrictions contained in Aw p-270- _ section 257; wiigipiilnéid md" (3) Paid—in or earned surplus and undivided profits; not including Intangible www suiéplus and undivided profits earned during the year; Hee rm meg before 4) Intangible property bona fide paid m for stock or shares prior "°"·'°"· toa]Mar<;h 3,h1917, in an anlilount not egceedgig gi) the actual cash v ue 0 suc ro ert at the time ai in, the ar value of the stock or sl;1arespissl)1ed5i;herefor, or (c)pin the egatld 25 per centum of the par value of the total stock or sharesagfrthe corporation outstanding on March 3, 191 7, whichever is lowest; A“°""'°”· ‘°"· (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 of the corporation out-
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Maximumallowance. y 8 8»Il10l1D IDC U 6 UD BI` paragraphs (4) and (5) exceed in the agigregate 25 per centum of the par va1ue_of the total stock or shares o the corporation outstanding at the beginning of the taxable year; but
