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reported additional ordinary income for the bargain element of
the stock when the restricted period ended. What is important
about Slater, however, is our statement that “When * * * [the
taxpayer] purchased the stock at a bargain, it was as if he had
been paid additional compensation which was used to purchase the
stock; thereby, he became an investor in the stock, and any
subsequent gain or loss is due to the fortunes of the company.”
Id. at 575. Thus, we considered the taxpayer in Slater v.
Commissioner, supra, to have become an investor in the stock in
June 1968, and we did not view the restricted period as altering
when the taxpayer became an investor.
Similarly in the present case, we view petitioner as an
investor in Read-Rite at the time the shares were received. We
do not find the gain on the sale of the Read-Rite stock to be
integrally related to the circumstances under which petitioner
acquired the stock. After receiving the Read-Rite shares as
consideration for the assets, Conner Malaysia became an investor
in the stock, and any subsequent gain or loss was due to the
fortunes of Read-Rite in the marketplace.
In addition, the value of the Read-Rite shares was
independently determined upon sale by investors in the stock
market, and was not integrally related to Conner Malaysia’s
former sale of assets to Read-Rite. Further, any gain or loss
on the Read-Rite shares during the restricted period had no
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