Memorandum Findings of Fact and Opinion
DAWSON, Judge:
Respondent determined a deficiency of $13,710.69 in petitioner's income tax for its fiscal year ended June 30, 1961.
The notice of deficiency disallowed deductions for a bad debt and for "legal and professional expenses." Only the bad debt deduction is in issue and turns on whether the cancellation by a parent corporation of
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