Hammond Times, Volume 15, Number 211, Hammond, Lake County, 28 February 1922 — Page 12

TAX RETURNS OF CORPORATIONS

Forms 1120 for reporting net inenmo for corporations for the year now are available at thn i.n'ces of tli collectors of internal revenue ami tloputy collectors. The federal tax on income f corporations in divided into two parts, income tax and excess profits tax The income tax on corporations for 1D-1 is at the rate of 10 per cent of the net income subject to tax. For 1922 'and subsequent years, as provided by the revenue act of 1921, the- income tax is 12 1-2 per cent. In ascertaining net income subject to the income (normal) tax, the corporation Is allowed certain KpecilV credits, which include (1) the amount of war and excess profits tax imposed by the United States for the same taxable year, and (I) interest received upon obligations of the United Stales and bonds of the war finance corporation which has been included in cress income. A specific credit of $2,000 n also allowed corporations whose net Income for 1521 was $25, 0"1) or irs. Under the revenue act of 1 SIS. this exemption was allowed all corporations regardless of the. amount of net intom.1 The act provides that if the r.et Income Is more than 520,000, the normal tax shall not exceed the tax which would be payable if the $2. 000 eredlt was allowed, plus the amount of net ia oome in excess of $25,000. EXCESS PROFITS TAt Tt excess profits tax is computed on the basis of the relation of net income to the Invested capital of the corporation, as defined by Section 325 of the revenue act cf 1?21. This tax la In addition to the normal tax of 10 per cent It Is baaed on the net income above a specific exemption of 13.000 and 8 per cent of the invested capital for the taxable year, these accounts being known as excess profits redlta. The rates are the same as for ISiO, 23 per cent of the net income In exc66s of the excess profits crodits and sot In excess of 20 rer .cent of the invested capital of the taxable year ""known as first bracket) and 40 per ent of the net Income in excess cf 20 per cent of the invested capital feecord bracket). Invested capital for the taxable year Is the capital actually paid out for stock outstanding, including: the paid-in surplus and earned surplus or profits earned prior to the taxable year, which have not been distributed. The term "Invested capital" does net Include borrowed capital. Invested capital eiuora.'is two classes of assets; those known as "admissible" assets and those known as "inadmissible" assets. ' Admi&tible assets are these (other than obligations of the United States) which produce Income thai Is exempt from Income tax. For example, cash, real estate, bills receivable and other tangible assets, which produce icccme that is subject to the income tax are admissible assets. Assets such as etocks and state or municipal bonds which produce income that Is exempt from income tax are Inadmissible assets. DEDUCTIONS KROM INVESTED CAPITA f j The revenue act of 1921 requires that all corporations having Inadmissible assets must deduct from Invested capttal "a percentage thereof equal to the percentage which the amount of inadmissible assets Is o the total amount of admissible and inadmissible assets held during the taxable year." For example, the total assets of a corporation for 1911 was $200,000, of T iich $150,000 In Inadmissible as?sets and $50,000 In admissible assets. The average invested capital was IbO.oco. Applying tne above rule, uio Invested captlal must be reduced 73 per cent -he percentage - of the Inadmissible assets, $150,000, to the totul assets, $200,000) The reduced Invested cap-l-al. therefore, will be $$0.er (the invested capital) less IS.OOO (75 per -ent of the Invested capital) or $20,000. Where a corporation's income Is reported on a cash receipts and disbursements basis, accrued Items cannot be taken into consideration in computing Its Invested capital. The payment of a stock dividend has ro efiect vpon the amount of invested capital. The ca.pltaiiza.tion of current e.rninara does' not increase the invested capital. Appreciation in good will and tangible property determined by an appraisal against which a stock dividend was Issued cannot be allowed as Invested capital. The value of tangible property paid in for stock or shares is an amount as limited by Section 326 of the revenue act of 13J1 may be Included in Invested capital. Tho revenue acc oi 19'J1 provides that every corporation, joint stock company, association and insurance company not specifically exempt shall file a return. Thero shall be included in the return a statement which will enable the commissioner to determine the rortion of tht, earnings or profits itax-ablo or nontaxable accumulated durinc the year for which the return is made, which have been distributed or ordered to bo distributed to its stockholders during Much year. A new and Important provision of the revenue act of 1921 is that where a corporation is formed or availed of to prevent the imposition of a surtax upon its stockholders by permitting its profits to accumulate instead of being distributed as dividends, it may be subject to a tax of 25 per cent in addition cO the normal tax of 10 per cent imposed on corporations. Tli.i stockholders, however, may agree with the commissioner that tire profits of the corporation shall be charged to them in the same manner as the distributive share of the partner?, and pay the tax as partners. 'When tho corporation is a mere holding company or its profits accumulate beyond the normal needs of its business, this &rall be prima fade evidence of a purpose to escape the eurtax. A reasonable accumulation of surplus, however, is permitted. Keturns must be filed with the collector of internal revenue for the district in which the corporations principle place of business is located. Corporations must file their returns on the basis of their exist, nar accounting period which is- established as the 12month period endinc on neeeinher "A or upon the last day of s.,me month other than December. A corporation

nwimc uu accounting without the permission of the c Kioner.

111K TIMES

Tuesday. 1-Vhnuiry 28,

period :tn mis-

CATARRH 1. of head or throat is usually

V ARO R U O

MUSLIN CHEMISE Made of soft hnish muslin, dainty and neatly trimmed. Wednes- (1 day only, 2 Chemises for. . . "?

EDWARD

MINAS

Coffee and Tea Combination, 3 pourd package Monarch Coffee

and One-Half pound 2j "f AA

lea, a

II for.

Tomorrow, Wednesday, March 1st

No Phone Mail or C. O. D. Orders

IK!

-a

Here's What One Dollar will Buy Tomorrow

DOUBLE STAMPS WEDNESDAY

BED SHEETS 81x90 at $1 Seamless, heavy quality muslin, free dressing, for double bed. A long waited opportunity to replenish your supply at each $1. (Limit 4 to customer)

BLEACHED MUSLIN 8 yards fpr $1.00 36 inch, wide, a good firm weave quality for sheets and pillow cases. UNBLEACHED MUSLIN 10 yards for $1.00 36-inch wide, excellent round thread quality which has a hundred uses, will bleach white. 10 yards for $1.00 APRON GINGHAM 9 yards for ' J$1.00 27 inches wide. All size checks and broken checks. Colors are indigo, brown, and green. Very fine quality. 9 yards for $1.00 DRESS PERCALE 7 yards for $1.00 36 inches wide. All new spring styles, very good standard percale, small figures and tripes on light and dark grounds. 7 yards for $1.00 TABLE DAMASK 2 yards for $1.00 58-inches wide, highly mercerized quality. Pretty stripe and floral patterns. 2 yards for $1.00 TURKISH TOWELS 6 for $1.00 , Size 17x34 inches, fully bleached, heavy quality terry doth, 6 for $1. DRESS GINGHAM 4 yards for li $1.00 32-inch. A very good reliable quality in all the new spring patterns of plaids, checks and plain colors. Exceptional value. 4 yards for $1.00 TABLE CLOTHS, 58 INCHES special each $1.00 Fully bleached, highly mercerized, an, excellent quality damask, square with hemstitched borders or round with scallops embroidered in blue. Special each $1.00 ALL SILK PONGES special a yard $1.00 33-inches wide, all silk imported ponges, government inspected and the best quality at $1.00 yard. ' CRASH TOWELING 9 yards for $1.00 16-inch length, bleached extra heavy twilled quality, fast color red border. Excellent for kitchen and roller towels. 9 yards for $1.

PILLOW CASES 4 for $1.00 42x36 inches and 43x36 inches, bleached pillow cases, 3 inch hem, very fine weave of muslin. Special 4 for $1.00 (Limit of 4 to each customer)

BANDEAU OR BRASSIERE 2 for $1.00 Pink novelty cloth with white satin stripe ard white muslin with embroidery edge, 2 for $1.00. BACK LACE CORSETS soecial each

$1.00

Henderson. Royal Wcrchester ard Empire Corsets, with elastic top and medium bust. Very special. $1.00 each.

WOMEN'S OXFORDS first pair $3.98 extra pairs $1.00 Black and brown kid, finest quality with Louis heels, sold regular at $7.85. Not all sizes. First pair $3.98. extra pair $1 .00 WOMEN'S SHOES first pair $3.98 2nd pair $1.00 Finest quality glace kid in brown, beaver brown and greys. Louis heels, widths aa to d, sizes 2'2 to 8, first pair $3.98, extra pairs $1.00 . Children's Shoes black and brown, good quality, sizes 4 to 8, regular $1.98 value, tf 1 speial a peair Baby's First Walk Shoes Fine quality. $1.50 shoes in black and fancy colors. Size "I 1 to 5, special

MEN'S SHOES first pair $3.98 extra pair at $1.00 Black and brown gun meji shoes, English lace style. Special first pair $3.98 and the second pair at $1.00

BOYS' STRAIGHT PANTS good values, 2 for $1.00 . Made of dark mixtures, regular 89c values, special 2 for $1.00. 2nd floor. CHILDREN'S PLAYALLS 2 for

$1.00

Made of Jight blue chambray. self trimmed, unusual value, special for Wednesday at 2 for $1.00 2nd floor. JUNIOR BOY'S BLOUSES 2 for

$1.00

Of black sateen, good quality and well made; also fancy stripe percale blouses, sizes 6 to 9 years. 2 for $1.00 2nd floor. JUNIOR BOYS' WASH SUITS worth as hih as $2.50, each '

$1.00

In middy, norfolk and Oliver Twist styles, all sizes, special each $1.00. 2nd floor. JUNIORS PANTS $1.79 values at

$1.00

Heavy weight dark mixtures, some full Inied. sizes 3 to 10 years, special each $1.00 2nd floor. CHILDREN'S DRESSES sec;al each

$1.00

Of fine grade gingham jn blue, pink, buff and green ; contrasting co'or trim. Sizes 2 to 6 years. $1.00. INFANTS SHORT DRESSES 2 for $1.00 Made of fine lawn material, lace trimming on neck and sleeves. Sizes 2 to 6 years. 2 for $1.00. 2nd floor.

16 BUTTON NEW SILK GLOVES special $1.00 Tricot silk weave, heavy weight gloves reinforced and double finger tips. All sizes. White only. Special $1.00 COLORED HANDKERCHIEFS . 7 for $1.00 Women's handkerchiefs with embroidered corner, fine soft lawn, soft and ready for use. 19c values. 7 for $1.00

IW WWBI IML JIHIi IUb,i

LEATHER HAND BAGS special at

$1.00

All leather hand and vanity bags in popular top strap style in various new shajes. Each $1.00

CHILDREN'S DURABLE HOSE 7 pairs for $1.00 Choice of fine or medium ribbed hose, duuble sole and heel, will wear well. Ln black only, 7 pairs for $1.00 main floor. WOMEN'S SUMMER UNION SUITS 2 for $1.00 Fine ribbed lisle finfch. band top, low neck, no sleeve, knee length. 2 for $1.00 SATEEN PETTICOATS special each $1.00 i In W'hite or colors, finished with tucked or accordian pleated flounce. White, navy, purple and green. Each $1.00 FLANNELETTE DIAPERS 7 for $1.00 Size 27x27 inches, good grade flannelette. Special 7 for $1.00 2nd floor. GIRL'S PANTY WAISTS 3 for $1.00 Made of extra heavy quality jean cloth. Sizes 8 to 12. The 50c kind, special 3 for $1.00 2nd floor. GERMANTOWN YARN 4 4 balls for $1.00 Four fold Germantown yarn in all colors, special 4 for $1.00 art section. STAMPED DOILES AND CENTER PIECES 2 for $1.00 A large asortment of doiles and center pieces specially priced, your choice at 2 for $1.00 art section. GIRL'S GINGHAM DRESSES special each $1.00 Plaid and plain colors for spring. Trimmed with white pique, contrasting plain gingham. Sizes 7 to 14 years. Special at $1.00 each. CRIB BLANKETS 2 for $1.00 Wool finish, 36x54 inches. Dainty plaid patterns, your choice of blue or pink colors. Special. 2 for $1.00. RAG RUGS each $1.00 Wry fine quality plain blue with white stripe broders fringed at both ends, size 27x54 inches. Special each $1.00

Palmolive Soap, 14 bars $1 Limit of 14 bars to customer. (Drug Section) Fashionette Hair Nets 12 for $1 Choice of double and single

h mesh, cap or fringe style.

any co!o r excepting grey. 12 for $1.00 (main floor) Muslin Gowns 2 for $1 Soft finish muslin gown with colored stitching and full fashioned. Special, 2 for $1.00. .Crochet Cotton 13 balls for $1 Kloster or Royal Society brands in nearly all colors and sizes, 13 balls for $1.00 Alarm Clock Special at $1 Nickle plated case, 6'4 inch high, 4 inch dial and 30 hour ?rass movement. Loud ringing bell. Each $1.00 Dress Aprons Special at $1 Extraordinary aprons i n gingham and light and dark percales. Trimmed with rick-rac and organdy ruffles. Extra size apron of dark percale are included each at $1.00 Women's Thread Silk Hose, $1 Fashioned heavy silk thread, double sole and heel, white, black and colors, regular $1.65 value, special a pair $1.00

COUPON SOAP COMBINATION all fa $1.00 10 bars American Family Soap 4 bars of Jap Rose 1 large package Grandmas ALL FOR $1.00 (None sold without this coupon)

RUFFLED SWISS CURTAINS special a pair $1.00 These are dainty well made curtains, with full ruffles that attract their charm. The price is: exceptionally low. Length 21 4 yards long, color, white only. Special, pair $1.00

Wear Ever Aluminum Sauce Pan 22 quart size, regular $1.40 value, special &"t f(

4S A IVV

eac

ill 1 ili1TWMMWPfc 1.

Wear Ever Aluminum Fry Pan 8J2 inch, regular $1 .65 1 value, special each. . . . Sauce Pan Set, pure extra heavy grade aluminum, set consists of 1, Wl and 2 quart sizes 1 fifi a!3for 31.UU

A Gallon of VARNISH at $1.00 High grade brand from a reliable manufacturer, on sale basement.

Berlin Kettle, pure heavy grade aluminum, 8 qt. size with aluminum cover, special 1 1 flfl

rach .

(Limit of one)

Pudding Pan Set, of high grade aluminum, 3 large ) 00 sizes, special for.... $1.25 and $l.o5 WSite Enamel Bread Boxes, with hinge cover, small and large sizes, Q0 special each . $1.50 Wall Coffee Mill, with glass canister, 2 pound ca- O J 00 pacity, special v $1.75 Clothes Hamper, splint, large size, well made with J QQ hinge cover, special. ... LADIES UMBRELLA special at . $1.00 Made of American cotton taffeta, 26 inch. 7 rib parogon frame with silk cord loop handle. Special $1. CRANES" BOX STATIONARY 3 boxes for

$1.00

24 sheets and 24 envelopes good quality linen in pink, blue and buff. Regular price 50c a box, special 3 boxes for $1.00 ABSORBENT COTTON 3 rolls for $1.00 For home and hospital use. Pure and sanitary lb. rolls, 3 for $1.00. $1.75 Cut Glass Basket, in beautiful cut floral patterns, t "J Cf

eac

main

oor.

INFANTS FLANNELETTE WRAPPERS 2 for $1.00 Flannelette gowns and gertrudes with pink and blue stitching. 2 for r.00

MEN'S WORK PANTS, $1 An extraordinary sale of Men's Worsted Work Pants. Well made of dark patterns, sizes 32 to 42.

MEN'S UNION SUITS Final clearance of Union Suits Broken lines at radically low priaes. Hehvy, medium and summer weight, Dollar "I Day, at P 1 MEN'S DRESS SHIRTS Percales and other serviceable fabrics. In many new patterns and colorings. . Sizes 1 4 1 to 17. Dollar Day at.. P MEN'S NECKWEAR 200 Ties in this sensational selling. Knit and Silk Ties, smart stripes, neat figures and plain colors. Dollar Day, Of 2 for A MEN'S WORK SHIRTS ! High grade "Signal" make. Blue and grey, also a limited quantity of flannel shirts. 1 Dollar Day, at MEN'S COTTON HOSE "Satisfaction" brand. Fine guage yarns, fast colors. Black and Cordovan. Dollar 1? 1 Day, 8 pair for 12 PAIR GLOVES Knit wrist canvas Gloves, cut full sizes. Dollar (frl O Day, per dozen . . . . - BOY'S PANTS Medium and dark mixtures. Some are lined. Sizes 6 to 1 7 years. Dollar Day BOY'S SHIRTS AND BLOUSES Standard makes, new spring patterns, light striped, collar attached and neckband. All sizes, values to $1 .50 Dollar Day at . A Beauty Shoppe Specials for $1 Phone for appointment. ' Shampoo, Curl and Hair Dress 1? 1 at Hot Oil Treatment and 1 and Shampoo at Shampoo and Marcel Wave t 1 at Shampoo and Henna Rinse flj 1 at DeWitt's Kidney and Bladder Pills, regular price 50c box. QQ special 3Jjoxes for. . . . Oil Mop and large 1 2-or. bot- tf 1 tie of oil, special at. ...... .

CHIDREN'S NEW STRAW HATS special at $1.00 Brown and navy straw sailors for school. New purchase. Ribbon streamers. At $1.00 millinery section.

HSBk

Sheraton Period

$115

$1.00 DOWN Brings This Cheney to Your Home Balance to be Paid Weekly In Convenient Terms SHERATON PERIOD Biltmore mahogany or oak, steel and jewel needles, two reproducers, five t "I 1 recodr shelves

18SS

Ow !7 Million Jan Vied Ytarls