PUBLIC LAWS-CH. 10-MAR . 7, 1941 "(ii) an amount equal to the same percentage of such daily invested capital as is applicable under section 6 S. C. 1s720. 720 in reduction of the average invested capital of the preceding taxable year; "(B) for the taxable year of less than twelve months con- sisting of that part of the remainder of its base period during which it was not in existence, shall be the amount ascertained for a full year under subparagraph (A), multi- plied by the number of days in such taxable year of less than twelve months and divided by the number of days in the twelve months ending with the close of such taxable year. "(3) In no case shall the average base period net income be less than zero. "(4) For the computation of average base period net income 4 Stat. 92. in the case of certain reorganizations, see section 742. 26U.S.c. . "(e) AVERAGE BASE PERIOD Nrr INCOME-GENERAL AVERAGE.- T he average base period net income determined under this subsection shall be determined as follows: "(1) By computing the aggregate of the excess profits net income for each of the taxable years of the taxpayer in the base period, reduced, if for more than one of such taxable years there was a deficit in excess profits net income, by the sum of such deficits, excluding the greatest; "(2) By dividing the amount ascertained under paragraph (1) by the total number of months in all such taxable years; and '(3) By multiplying the amount ascertained under paragraph (2) by twelve. "(f) AVERAGE BASE PERIOD Nr INCOME-INCREASED EARNINGS IN LAST HAL_ OF BASE PERIOD. -The average base period net income determined under this subsection shall be determined as follows: "(1) By computing, for each of the taxable years of the tax- payer in its base period, the excess profits net income for such year, or the deficit in excess profits net income for such year; "(2) By computing for each half of the base period the aggre- gate of the excess profits net income for each of the taxable years in such half, reduced, if for one or more of such years there was a deficit in excess profits net income, by the sum of such deficits. For the purposes of such computation, if any taxable year is partly within each half of the base period there shall be allocated to the first half an amount of the excess profits net income or deficit in excess profits net income, as the case may be, for such taxable year, which bears the same ratio thereto as the number of months falling within such half bears to the entire number of months in such taxable year; and the remainder shall be allocated to the second half; "(3) If the amount ascertained under paragraph (2) for the second half is greater than the amount ascertained for the first half, by dividing the difference by two; "(4) By adding the amount ascertained under paragraph (3) to the amount ascertained under paragraph (2) for the second half of the base period; "(5) By dividing the amount found under paragraph (4) by the number of months in the second half of the base period and by multiplying the result by twelve; (6) The amount ascertained under paragraph (5) shall be the average base period net income determined under this sub- section, except that the average base period net income deter- mined under this subsection shall in no case be greater than 20 [55 STAT.
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