Section 3402-304 - Ascertainment of gain and lossA. For the purpose of ascertaining any gain included in gross income as herein defined, derived, or any deductible loss sustained, for the sale or other disposition of property, real, personal or mixed, the basis shall be, in case of property acquired on or after January first, one thousand nine hundred thirty-five, the cost thereof or the inventory value, if the inventory is made in accordance with this article. B. In case of property acquired prior to January first, one thousand nine hundred thirty-five, and disposed of thereafter--(1) No profit shall be deemed to have been derived if either the cost or the fair market price or value on January first, one thousand nine hundred thirty-five, exceeds the value realized;(2) No loss shall be deemed to have been sustained if either the cost or the fair market price or value on January first, one thousand nine hundred thirty-five, is less than the value realized;(3) Where both the cost and the fair market price or value on January first, one thousand nine hundred thirty-five, are less than the value realized, the basis for computing profit shall be the cost or the fair market price or value on January first, one thousand nine hundred thirty-five, whichever is higher;(4) Where both the cost and the fair market price or value on January first, one thousand nine hundred thirty-five, are in excess of the value realized, the basis for computing loss shall be the cost or the fair market price or value on January first, one thousand nine hundred thirty-five, whichever is lower.1935, July 12, P.L. 970, No. 314, art. III, § 304.