HERBERT R. O'CONOR, GOVERNOR. 1387

ducted, in lieu of the foregoing, additions to reserves for bad
debts, under such rules as the Comptroller may prescribe. If
the Comptroller at any time shall deem the reserve excessive,
he may restore such excess to the income either in a subse-
quent year or as a part of the income of the taxable year in
which deducted.

224(j) (1) A reasonable allowance for exhaustion, wear and
tear of property used in trade or business, including a reason-
able allowance for obsolescence, and in the case of natural re-
sources, allowance for depletion, as permitted by rules and
regulations of the Comptroller.

(2) With respect to any emergency facility as defined by the
Federal Revenue Act applicable to the taxable period, provided
that the taxpayer has included in gross income any payments
by way of reimbursements for the cost of such emergency
facility, an allowance under subparagraph (1) hereof, or, at
the election of the taxpayer, an allowance for amortization
deduction as permitted by rules and regulations of the Comp-
troller.

226(b). Unless otherwise required by this sub-title, or by
regulations of the Comptroller, taxpayers reporting their
income on a cash basis shall account only for amounts
actually or constructively received and actually expended, and
taxpayers reporting their income on an accrual basis shall
account for amounts earned, whether received or not, and
liabilities incurred, whether paid or not. In the case of the
death of a taxpayer, the net income for the taxable period
in which falls the date of his death shall be computed by in-
cluding in income amounts accrued up to the date of his death
if not otherwise properly includible in respect of such period
or a prior period, and there shall be allowed as deductions
amounts accrued up to the date of his death if not otherwise
properly allowable in respect of such period or a prior period.

228(c). If the status of the taxpayer changes during the
taxable year, the amounts allowable under (a) and (b) hereof
shall be apportioned in accordance with the number of months
before and after such change.

239. Verification of Returns. Every return filed by an
individual shall be signed by the taxpayer and every cor-
poration or partnership return required by this sub-title shall
have annexed thereto a statement duly signed by the Presi-
dent, Vice-President, Secretary, Treasurer, Assistant Secre-
tary or Assistant Treasurer, or a statement duly signed by
a member of the partnership, or a statement duly signed by the
receiver or trustee for a partnership or corporation in liquida-