PUBLIC LAW 183—OCT. 20, 1951
" (D) By computing the sum of— " (i) the aggregate of the substitute excess profits net income, as determined under subparagraph (C), for the 12 months selected under subparagraph (B), but the amount computed under this clause shall not exceed onehalf of the aggregate excess profits net income for the 24 months remaining under subparagraph (B), and " (ii) the aggregate of the excess profits net income for each of the 24 months remaining under subparagraph (B), computed in the manner provided by the second sentence of section 435(d)(1). " (E) By dividing by three the amount ascertained under subparagraph (D). "(3) AGGREGATE EXCESS PROFITS NET INCOME.—The 'aggregate excess profits net income' for any period shall be computed for the purposes of this subsection in the same manner as under subsection (b). " (b)
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(1) Section 435(f)(3) (relating to capital addition in the base period) is hereby amended by inserting immediately after the words "under section 442(c)(1)", wherever appearing therein, the following: "or under section 442(h) ". (2) Section 461 (relating to definitions for purposes of part II) is hereby amended by inserting at the end thereof the following new subsection: " (g) APPLICATION OF SECTION 442 (h).—For the purpose of this part, the reference to section 442(c) in any section in this part shall be deemed a reference to section 442(c) or (h). " SEC. 510. DEFINITION OF TOTAL ASSETS FOR PURPOSES OF SECTIONS 442-446. The first sentence of section 442(f) (relating to definition of total assets) is hereby amended to read as follows: "For the purposes of this section, the taxpayer's total assets for any day shall be determined as of the end of such day and shall be an amount equal to the excess of— "(1) the sum of the cash and the property (other than cash, inadmissible assets, and loans to members of a controlled group as defined in section 435(f)(4)) held by the taxpayer in good faith for the purposes of the business, over "(2) the amount of any indebtedness (other than borrowed capital as defined in section 439(b)(1)^ to a member of a controlled group (as defined in section 435(g)(6)) which includes the taxpayer."
^11**1/^^^5435(0 (3). 64 ^tf^^ig.^^n^i. (D, 442(h)." ^°* P- ^^^'
ae u^s c^^§435 (O (4). " ' " 26u*s*c"§^§is^fbi (D, 435 (g)'(6).
SEC. 511. AVERAGE BASE PERIOD NET INCOME—CHANGE IN PRODUCTS OR SERVICES. Section 443(f) (relating to change in products or services) is hereby amended to read as follows: "(f)
RULES FOR APPLICATION OF SECTION.—
"(1) The benefits of this section shall not be allowed unless the taxpayer makes application therefor in accordance with section 447(e). "(2) If after the end of the base period of the taxpayer there was a substantial change in the products produced by the taxayer, such change shall, for the purpose of subsection (a)(1), e considered to have occurred on the last day of its base period if the taxpayer prior to July 1, 1950, commenced the construction of the facilities for the production of such new product, and if
^ u*s "^5 443 (f)
64 Stat. 1174.
26 U.S.C. § 447 (e),,