bankruptcy; that the price was satisfactory to the referee and to the general creditors; and that promptly thereafter the new corporation was organized, all of the assets of the old transferred to it by Ziegler, the new company assuming the secured indebtedness of the old company, and each stockholder of the old company being entitled to receive shares in the new company in the ratio of his stock holding in the old. The cost basis of all of the properties of the old company amounted in the aggregate to $107,293.26. The respondent fixed the basis of the properties to accord with the amount paid to the trustee in bankruptcy by Ziegler allocated as between inventory and accounts receivable, and asserted a deficiency computed upon realizations during the taxproperty is in the hands of the court private rights as respect that res are subject to the superior dominion of the court and are to be adjudicated pursuant to the standards prescribed by the Congress." The insolvency of the old company, its adjudication as a bankrupt, and the sale of all of its assets for less than its debts, put a period to its existence. The new company was a separate enterprise and its realized gains are taxable.
The decision of the Board of Tax Appeals is affirmed.
