upr000279 216

fo r the com pany, anal* as d&M&ari* poser, wkM M almost in 1950, need a n a ly s is , sad W»* s^m m m i s ipSiws to look Into that as s e ll aa to f t i M t what b a sis fl# *rea he eon on p a y ro ll ana ether costs that re la te to the operation# o f the I& s trib u tla i Company. lik e w ise , Onehs has teen ashed fo r a too*Mown* s§ Imre made Sjthat 1« eoiapXeted. §§Sti rmielvaernluye, efsitixmeadt ec afpiotra l1,9 8r1,a teso base fl^area h m K depreciation estimate# hare teen m m lebed. Tehsisse ntRoiaanlel yt thaot o ptehrea wtoirnkg eyxetp etnoe ehse, idonneel urdellnaet et*h e ®wigUM#mt fee asslgnmente. with thee® basic fig ures, it rill then he neeeeeary to aet then m? In proper for® and mho the necessary computation* * includin g Federel' ifHM&ft tea* Is reference to the la tte r* i t nay he pointed oat that el**# the in it i a l rep o rt was prepared, there haa been a ehenge la the fed era l ineotae tax leer* the present revenue le t ie sorswhat more favorahie he the smalt corporation la that the surtax rate does not become e ffe c tiv e m t H a fte r the f ir a t $&5.500 o f net taxable Ineome, tM # moans a leeeer Federal insane tax heeauae o f the £*35,000 exemption, inasmuch a# 10m ewa o f both the hem al and surtax a t the present time Is s t i l l the 4«£ used in the in it i a l report as one o f the bases o f computation, w d f as sta ted , the ftp surtax p o rtio n , which o r ig in a lly applied on the to ta l taxable Insane, warn does not apply u n t il a fte r the f i r s t #85,00$, the tax adjustment is one o f the p rln o lp e l reasons shy the gross revenue defioieney a* te n ta tiv e ly com­puted fo r 1951 Is Isas than that eowputed fo r 1950 tinder the d ip income tax le v e l. 1 M i planned to work up sene m aterial that would he h e lp fu l in supporting the «#£ rat# o f retu rn requested. In doing M ile, X d id net have in mind attempting to make an extensive study. Sm% a study and/or presentation sig h t take and he dependent upon too avenues o f aporoeotei (a) the eetttn^ up o f a ty p le a l fin a n o la l stru ctu re that a water u t ilit y aueh as the V tu m o * s i^ tt have i f i t were operated as an independent corporation w ith bonds and preferred and common atook cutetending* the coat in money , from such a aet~up would then be developed*