The Charles Schwab Corporation and Includable Subsidiaries - Page 19

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          fixes petitioner’s right to receive the commission income.  The                    
          functions that remain to be performed by petitioner after the                      
          trade date are of a ministerial nature to effectuate the                           
          mechanics of the transfer and confirm the trade executed.                          
          Although failure to perform these functions may ultimately divest                  
          petitioner of its right to the commission income, we think that                    
          these functions are conditions subsequent and, therefore, do not                   
          preclude accrual of commission income on the trade date.                           
                Nor does the possibility that an executed trade may not                      
          settle due to cancellation of an entire public offering make                       
          petitioner’s right to the commission income too indefinite or                      
          contingent for accrual.  See Brown v. Helvering, 291 U.S. 193,                     
          199-200 (1934) (holding that overriding commissions received by a                  
          general agent for policies written must be accrued even though                     
          there was a contingent liability to return a portion of the                        
          commission in the event the policy was canceled); Georgia School-                  
          Book Depository, Inc. v. Commissioner, 1 T.C. 463, 468-470 (1943)                  
          (holding that a book broker that represented publishers in sales                   
          of school books to the State of Georgia must accrue commission                     
          income, despite the fact that the State was obligated to pay for                   
          the books only out of a particular fund, and, during the years in                  
          issue, the fund was insufficient to pay for the books in full).                    
          The possibility that a trade might not finally be settled is, if                   
          anything, a condition subsequent to the execution of the trade,                    
          which was the event that fixed petitioner's right to the                           




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