Case Name: Appeal of Automatic Sprinkler Company of America
Court: United States Board of Tax Appeals
Jurisdiction: United States
Decision Date: 1926-11-12
Citations: 5 B.T.A. 479
Docket Number: Docket No. 4987
Parties: Appeal of Automatic Sprinkler Company of America.
Judges: 
Reporter: Reports of the United States Board of Tax Appeals
Volume: 5
Pages: 479–480

Head Matter:
Appeal of Automatic Sprinkler Company of America.
Docket No. 4987.
Decided November 12, 1926.
Irving Smith, Jr., Esq., for the petitioner.
Thomas P. Dudley, Jr., Esq., for the Commissioner.

Opinion:
Littleton :
This is an appeal from the determination of deficiencies for the years 1918 and 1919 in the amounts of $32,802.85 and $7,800.80, respectively, of which amounts approximately $2,100 is in dispute.
The controversy arises from the reduction by the Commissioner from $50,000 to $25,000 of invested capital, representing alleged value of patents and license agreements.
FINDINGS OF FACT.
The taxpayer is a Delaware corporation with principal office in New York City. During the taxable years it was affiliated with the Sypho-Chemical Sprinkler Corporation. On February 6, 1916, the Sypho-Chemical Sprinkler Corporation acquired for $200,000 par value of its capital stock certain patents and license agreements covering a certain automatic fire extinguishment system, which patents and license agreements had an actual cash value at the time acquired for stock of $50,000.
Judgment will he entered for the petitioner upon the issue raised on 15 days' notice, under Rule 50.