NORDBYE, District Judge.
The situation may be stated as follows: On August 1, 1939, plaintiff was organized and commenced to do business. On that date, in exchange for its capital stock, it acquired from the former owner certain real estate situated in Duluth, Minnesota, Ever since its organization, plaintiff has filed its income tax returns on the basis of a fiscal year ending January 31st of each calendar year and upon an accrual basis. In its tax return filed April...
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