INVOLUNTARY LIQUIDATION AND REPLACEMENT OF INVENTORY.

SEC. 306. INVOLUNTARY LIQUIDATION AND REPLACEMENT OF INVENTORY. (a) Amendment of Section 22 (d) (6) (F) (iii).—Section 22 (d) (6) (F) (iii) (relating to replacement of inventory involuntarily liquidated) is hereby amended by striking out the last sentence and inserting in lieu thereof the following: “If, for any taxable year ending after June 30, 1950, and prior to January 1, 1953, subparagraph (C) is applicable with respect to involuntary liquidations of goods 65 Stat. 485 of the same class subject to the provisions of both subparagraph (A) and this subparagraph, the involuntary liquidations of such goods subject to the provisions of this subparagraph shall be considered for the purpose of subparagraph (C) as having occurred prior to the involuntary liquidations of such goods subject to the provisions of subparagraph (A). For the purpose of this clause, and with respect to the taxable years covered by this subparagraph, the reference in subparagraph (E) to section 734 (d) shall be taken as a reference to section 452 (d).” (b) Effective Date.—The amendment made by subsection (a) shall be applicable with respect to taxable years ending after June 30, 1950.