Sec. 12 (c), I. R. C., supra, amended by Sec. 150 (j), R. A. of 1942, to read as above. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. For Sec. 12 (c), I. R. C., before amendment, see 1942 column. Sec. 12. (d) Sale of oil or gas properties. For limitation of surtax attributable to the sale of oil or gas properties, see section 105. Sec. 12. (e) Tax on personal holding companies.— For surtax on personal holding companies, see section 500. Sec. 12. (f) Avoidance of surtaxes by incorporation. For surtax on corporations which accumulate surplus to avoid surtax on shareholders, see section 102. Sec. 12. (g) For alternative tax if gross income from certain sources is $3,000 or less, see section 400. Sec. 12, I. R. C, amended by Sec 102 (b) (2), R. A. of 1941, by adding subsection (g). Sec. 118 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940. Sec. 13. Tax on corporations in general. Sec. 13. (a) Definitions.-For the purposes of this chapter Sec. 12. (c) Tax in case of capital gains or losses. For rate and computation of alternative tax in lieu of normal tax and surtax in the case of a capital gain or loss from the sale or exchange of capital assets held for more than eighteen 6 months see section 117 (c). Sec. 12 (c), I. R. C., supra, amended by Sec. 150 (1), R. A. of 1942, by substituting "6" for "eighteen." Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 12. (d) Sale of oil or gas properties. For limitation of surtax attributable to the sale of oil or gas properties, see section 105. Sec. 12. (e) Tax on personal holding companies.— For surtax on personal holding companies, see section 500. Sec. 12. (f) Avoidance of surtaxes by incorporation.— For surtax on corporations which accumulate surplus to avoid surtax on shareholders, see section 102. Sec. 12. (g) For alternative tax if gross income from certain sources is $3,000 or less, see section 400. Sec. 12, I. R. C., amended by Sec. 102 (b) (2), R. A. of 1941, by adding subsection (g). Sec. 118 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940. Sec. 13. Tax on corporations in general. Sec. 13. (a) Definitions.-For the purposes of this chapter Sec. 12. (c) Tax in case of capital gains or losses. For rate and computation of alternative tax in lieu of normal tax and surtax in the case of a capital gain or loss from the sale or exchange capital assets held for than eighteen months, see section 117 (c). of more Sec. 12. (d) Sale of oil or gas properties. For limitation of surtax attributable to the sale of oil or gas properties, see section 105. Sec. 12. (e) Tax on personal holding companies. For surtax on personal holding companies, see section 500. Sec. 12. (f) Avoidance of surtaxes by incorporation.— For surtax on corporations which accumulate surplus to avoid surtax on shareholders, see section 102. Sec. 12. (g) For alternative tax if gross income from certain sources is $3,000 or less, see section 400. Sec. 12, I. R. C., amended by Sec. 102 (b) (2), R. A. of 1941, by adding subsection (g). Sec. 118 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940. Sec. 13. Tax on corporations in general. Sec. 13. (a) Definitions.-For the purposes of this chapter Sec. 13. (a) (1) Adjusted net Sec. 13. (a) (1) Adjusted net Sec. 13. (a) (1) Adjusted net income. The term "adjusted net income.-The term "adjusted net income.-The term "adjusted net income" means the net income mi- income" means the net income mi-income" means the net income minus the credit provided in section nus the credit provided in section nus the credit provided in section Taxable Years Beginning in 1940 1940, to read as above. Sec. 9 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1939. See Sec. 12(b), I. R. C., prior to amendment, in 1939 column. Sec. 12. (c) Tax in case of capital gains or losses. For rate and computation of alternative tax in lieu of normal tax and surtax in the case of a capital gain or loss from the sale or exchange of capital assets held for more than eighteen months, see section 117 (c). Taxable Years Beginning in 1939 $5,000,000, 74 per centum in addition of such excess. $3,591,000 upon surtax net incomes of $5,000,000; and upon surtax net incomes in excess of $5,000,000, 75 per centum in addition of such excess. Sec. 12. (c) Tax in case of capital gains or losses.— For rate and computation of alternative tax in lieu of normal tax and surtax in the case of a capital gain or loss from the sale or exchange of capital assets held for more than eighteen months, see section 117 (c). Taxable Years Beginning before 1939 Sec. 12. (c) Tax in case of capital gains or losses. See p. 12, Eighth Edition. income. The term "adjusted net come. For the purposes of this come. income" means the net income mi- chapter the term "adjusted net nus the credit provided in section income" means the net income See p. 12, Eighth Edition. Taxable Years Taxable Years Taxable Years 26 (a), relating to interest on cer-26 (a), relating to interest on cer-26 (a), relating to interest on certain obligations of the United tain obligations of the United tain obligations of the United States and Government corpora- States and Government corpora- States and Government corporations. Sec. 13. (a) (2) Normal-tax net income. The term "normal-tax net income" means the adjusted net income minus the credit for income subject to the tax imposed by Subchapter E of Chapter 2 provided in section 26 (e) and minus the credit for dividends received provided in section 26 (b). tions. tions. Sec. 13. (a) (2) Normal-tax net Sec. 13. (a) (2) Normal-tax net income.-The term "normal-tax net income.-The term "normal-tax net income" means the adjusted net in- income" means the adjusted net income minus the credit for income come minus the credit for dividends subject to the tax imposed by Sub-received provided in section 26 (b). chapter E of Chapter 2 provided in section 26 (e) and minus the credit for dividends received provided in section 26 (b). Sec. 13. (b) Imposition of tax.- Sec. 13. (b) Imposition of tax.— Sec. 13. (b) Imposition of tax.— There shall be levied, collected, and There shall be levied, collected, and There shall be levied, collected, and paid for each taxable year upon the paid for each taxable year upon the paid for each taxable year upon the normal-tax net income of every cor- normal-tax net income of every cor- normal-tax net income of every corporation the normal tax net income poration the normal tax net income poration the normal tax net income of which is more than $25,000 (ex-of which is more than $25,000 (ex- of which is more than $25,000 (except a corporation subject to the cept a corporation subject to the cept a corporation subject to the tax imposed by section 14, section tax imposed by section 14, section tax imposed by section 14, section 231 (a), Supplement G, or Supple- 231 (a), Supplement G, or Supple- 231 (a), Supplement G, or Supplement Q) whichever of the following ment Q) whichever of the following ment Q) whichever of the following taxes is the lesser: taxes is the lesser: taxes is the lesser: Sec. 13. (b) (1) General rule.A tax of 24 per centum of the normal-tax net income; or Sec. 13. (b) (1) General rule.— A tax of 24 per centum of the normal-tax net income; or Sec. 13. (b) (1) General rule.A tax of 224 24 per centum of the normal-tax net income; or Sec. 13. (b) (2) Alternative tax (corporations with normal-tax net income over $25,000, but not over $50,000).—A tax of $4,250 plus 31 per centum of the amount of the normal-tax net income in excess of $25,000. C.. Sec. 13 (a) (2) and Sec. 13 (b) (2), I. R. supra, amended by Sec. 105 (a) (1) and Sec. 105 (a) (2), respectively, of R. A. of 1942, to read as above. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. For Sec. 13 (a) (2) and Sec. 13 (b) (2), I. R. C., before amendment, see 1942 column. Sec. 13. (b) (2) Alternative tax (corporations with normal-tax net income slightly more than over $25,000, but not over $50,000).A tax of $4,250 plus 31 37 per centum of the amount of the normaltax net income in excess of $25,000. Sec. 13 (a) (2) and Sec. 13 (b) (2), I. R. C., supra, amended by Sec. 105 (a) (1) and Sec. 105 (a) (2), respectively, of R. A. of 1942, by omitting language in stricken through type and adding language in italics and underlined bold face type. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. For prior amendments, see Sec. 13. (b) (2) Alternative tax (corporations with normal-tax net income slightly more than $25,000). A tax of $3,775 $4,250 plus the normal-tax net income in ex35 37 per centum'of the amount of cess of $25,000. Sec. 13 (b), I. R. C., supra, amended by Sec. 103 (a), R. A. of 1941, by omitting language in stricken through type and adding language in italics. Sec. 118 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940. 26 (a), relating to interest on cer- minus the credit provided in sectain obligations of the United tion 26 (a), relating to interest States and Government corpora- on certain obligations of the tions. Sec. 13. (a) (2) Normal-tax net income. The term "normal-tax net income" means the adjusted net income minus the credit for dividends received provided in section 26 (b).) United States and Government Taxable Years Beginning before 1939 Sec. 13. (b) Imposition of tax.- Sec. 13. (b) Imposition of tax.— There shall be levied, collected, and There shall be levied, collected, paid for each taxable year upon the and paid for each taxable year normal-tax net income of every cor- upon the net income of every corporation the normal-tax net income poration the net income of which of which is more than $25,000 (ex-is more than $25,000 (except a cept a corporation subject to the corporation subject to the tax imtax imposed by section 14, section posed by section 14, section 231 231 (a), Supplement G, or Supple- (a), Supplement G, or Supplement ment Q) whichever of the following Q) a tax computed under subsectaxes is the lesser: Sec. 13. (b) (1) General rule.— A tax of 18-19 22 1/10 per centum of the normal-tax net income; or tion (c) of this section or a tax Sec. 13. (c) General rule.-The tax computed under this subsection shall be as follows: (1) A tentative tax shall first be computed equal to 19 per centum of the adjusted net income. (2) The tax shall be the tentative tax reduced by the sum of— (A) 161⁄2 per centum of the credit for dividends received provided in section 26 (b); and (B) 22 per centum of the dividends paid credit provided in section 27, but not to exceed 22 per centum of the adjusted net income. Sec. 13. (d) Alternative tax with net income slightly more than $25,000).— Sec. 13. (b) (2) Alternative tax (corporations with normal-tax net (corporations income slightly more than $25,000)-A tax of $3,525 $3,775 plus 22-32 35 per centum of the amount of the normal-tax net income in excess of $25,000. Sec. 13 (b), I. R. C., supra, was amended by Sec. 201, R. A. of 1939, to read as shown above in ordinary type before being stricken through and before addition of figures in italics and figures in underlined italics. Sec. 229 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1939. Sec. 13(b), I. R. C., supra, again amended by Sec. 3(a), (1) If no portion of the gross income consists of interest allowed as a credit by section 26 (a) (relating to interest on certain obligations of the United States and Government corporations), or of dividends of the class with respect to which credit is allowed by section 26 (b), then the tax computed under this subsection shall be equal to $3,525, plus 32 per centum of the amount of the net income in excess of $25,000. (2) If any portion of the gross income consists of such interest or |