Page:United States Statutes at Large Volume 65.djvu/590

 556 26 ui^s.c^l447(c).

PUBLIC LAW 183—OCT. 20, 1951

[65 STAT.

" (i) the base period rate of return determined under section 447(c) for the industry classification which includes radio broadcasting, or "(ii) if the taxpayer was engaged during its base period in the business of radio broadcasting, its individual rate of return computed under paragraph (4), whichever rate of return produces the greater average base period net income under this subsection. If the amount computed under this subparagraph is computed by the use of the rate of return specified in clause (i), the amount so computed shall be reduced by an amount equal to such portion of the total interest paid or incurred by the taxpayer, for the period of 12 months following the close of its base period, as is attributable to its television broadcasting business. " (C) By adding the amount computed under subparagraph (B) to the amount, if any, computed under subparagraph

(A).

" (3) C O M M E N C I N G TELEVISION BROADCASTING AFTER BASE PERIOD AND BEFORE 1951.—If the taxpayer acquires its television broad-

Ante,p.551.

casting business after the close of its base period and before January 1, 1951, the average base period net income computed under this paragraph shall be computed as provided in paragraph (2), except that— " (A) the applicable rate of return under paragraph (2) (B) shall be multiplied by such part of its total assets (as defined in section 442(f)), for the last day of the calendar month in which it first engaged in such business, as was attributable to such business, and " (B) the reduction specified in the last sentence of paragraph (2)(B) shall, if applicable, be equal to such portion of the total interest paid or incurred by the taxpayer, for the period of 12 months following the month in which it first engaged in such business, as is attributable to such business. "(4) INDIVIDUAL RATE OF RETURN.—The individual rate of return shall be computed as follows: " (A) By determining the amount of the taxpayer's total assets (as defined in section 442(f) attributable to the business of radio broadcasting for the last day of each month in its base period. " (B) By computing the aggregate of the amounts ascertained under subparagraph (A) and dividing by 48. " (C) By computing for each month in the base period the excess profits net income of the radio broadcasting business (determined without regard to income, deductions, losses, or other items attributable to any other business), by adding such amounts for all of the months in the base period, and by dividing by 4. " (D) By dividing the amount computed under subparagraph (C) by the amount computed under subparagraph (B). " (5)

26 u 1" ci'435 (a) 26u*sci"435(d) Ante,p.5ii. Anu, p. 547.

KuiiEs FOR APPLICATION OF SUBSECTION.—

" ( ^) ^ ^ ^ *^^ purpose of section 435(a)(1)(B), an average base period net income determined under this subsection shall be considered an average base period net income determined under section 435(d); but, in computing the base period capital addition under section 435(f), the computations under such section shall be adjusted, under regulations prescribed by the Secretary, so as to exclude therefrom items attributable to the television broadcasting business.

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