Mr. M. Dear A. Browning, Ogden, Utah. Mr. November 4, 1941 Re: Browning Arms Company. Browning: The Revenue Act of 1941 provides for a carry-over of the 1940 unused excess profits credit for a period of two years. It also requires the recomputation of the 1940 excess profits net income eliminating from the previous calculations made under the 1940 Act the normal tax applicable to each of the years of the base period, or 1936 to 1939 inclusive. the amount of and to decrease of the 1940 decidedly the the normal to The effect carry-over the amount and of this computed of the of is to increase base period the carry-over surtaxes. advantage for In the the by instant the amount case it _ is corporation. a the excess portion of of We have computed, and show next below, profit credit for the year 1941, also the unused the 1940 excess profits credit. A total credit $164,909.07 the imposition can be carried follows: Excess 1941 can be used for profits credit for based upon average period Specific net the calendar year 1941 before of excess profits taxes. Any unused portion over to the year 1942. The computation the year base income 81,122.23 Exemption 5,000.00 | Total 86,122.23, Unused Portion of 1940 Excess Profits Credit: Recomputation of Excess Profits credit for 1940 under the Revenue Act of 1941 81,122.23 Deduct Excess income Profits Unused Portion Total credit for Net 2, 335.39 the 78,786.84. calendar 1941 before imposition Profits Taxes The of year Excess $164,909.07. Browning Arms Company would be subject