MORTON, Circuit Judge.
This is an appeal by the government from a decision by the Board of Tax Appeals. The respondent, which we shall refer to as the Woods Company, sued the Yates Machine Company for infringement of a patent and obtained a decree in its favor, with the usual order of reference to ascertain damages and profits. The parties then settled the controversy and, in connection with the settlement, the Yates Company transferred to the Woods Company 1,022...
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