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TITLE 26-INTERNAL REVENUE CODE able years ending after December 31, 1957, but only with respect to obligations acquired after such date." CROSS REFERENCES General rule for inventories, see section 471 of this title. Last.in, first-out inventories, see section 472 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1016 of this title. [§ 76. Repealed. Pub. L. 94-455, title XIX, § 1901(a)(14), Oct. 4, 1976, 90 Stat. 1765] Section, act Aug. 16, 1954, ch. 736, 68A Stat. 25, re- lated to the inclusion in gross of all income derived from mortgages made, or obligations issued, by a joint- stock land bank. § 77. Commodity credit loans (a) Election to include loans in income Amounts received as loans from the Commod- ity Credit Corporation shall, at the election of the taxpayer, be considered as income and shall be included in gross income for the taxable year in which received. (b) Effect of election on adjustments for subsequent years If a taxpayer exercises the election provided for in subsection (a) for any taxable year, then the method of computing income so adopted '7hall be adhered to with respect to all subse- quent taxable years unless with the approval of the Secretary a change to a different method is authorized. (Aug. 16, 1954, ch. 736, 68A Stat. 25; Pub. L. 94- 455, title XIX, § 1906(b)(13)(A), 90 Stat, 1834.) AMENDMENTS 1976-Subsec. (b). Pub. L. 94-455 struck out "or his delegate" following "Secretary". CROSS REFERENCES Adjustments to basis, see section 1016 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1016 of this title. § 78. Dividends received from certain foreign corpora. tions by domestic corporations choosing foreign tax credit If a domestic corporation chooses to have the benefits of subpart A of part III of subchapter N (relating to foreign tax credit) for any tax- able year, an amount equal to the taxes deemed to be paid by such corporation under section 902(a) (relating to credit for corporate stock- holder in foreign corporation) or under section 960(a)(1) (relating to taxes paid by foreign cor- poration) for such taxable year shall be treated for purposes of this title (other than section 245) as a dividend received by such domestic corporation from the foreign corporation. (Added Pub. L. 87-834, § 9(b), Oct. 16, 1962, 76 Stat. 1001, and amended Pub. L. 94-455, title X, § 1033(b)(1), Oct. 4, 1976, 90 Stat. 1628.) AMENDMENTS 1976-Pub. L. 94-455 substituted "section 902(a)" for "section 902(a)(1)" and "section 960(a)(1)" for "section 960(a)(1)(C)". EFFECT,.VE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-455 applicable on differ- ent dates depending on the date the distributions were received, see section 1033(c) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 902 of this title. EFFECTIVE DATE Section applicable in respect of any distribution re- ceived by a domestic corporation after Dec. 31, 1964, and in respect of any distribution received by a domes- tic corporation before Jan. 1, 1965, in a taxable year of such corporation beginning after Dec. 31, 1962, but only to the extent that such distribution is made out of the accumulated profits of a foreign corporation for a taxable year (of such foreign corporation) beginning after Dec. 31, 1962, see section 9(e) of Pub. L. 87-834, set out as an Effective Date of 1962 Amendment note under section 902 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 819A, 902, 906, 908 of this title. § 79. Group-term life insurance purchased for em- ployees (a) General rule There shall be included in the gross income of an employee for the taxable year an amount equal to the cost of group-term life insurance on his life provided for part or all of such year under a policy (or policies) carried directly or indirectly by his employer (or employers); but only to the extent that such cost exceeds the sum of- (1) the cost of $50,000 of such insurance, and (2) the amount (if any) paid by the employ- ee toward the purchase of such insurance. (b) Exceptions Subsection (a) shall not apply to- (1) the cost of group-term life insurance on the life of an individual which is provided under a policy carried directly or indirectly by an employer after such individual has ter- minated his employment with such employer and either has reached the retirement age with respect to such employer or is disabled (within the meaning of section 72(m)(7)), (2) the cost of any portion of the group- term life insurance on the life of an employee provided during part or all of the taxable year of the employee under which- (A) the employer is directly or indirectly the beneficiary, or (B) a person described in section 170(c) is the sole beneficiary, for the entire period during such taxable year for which the employee receives such insur- ance, %nd (3) the cost of any group-term life insurance which is provided under a contract to which section 72(m)(3) applies. (c) Determination of cost of insurance For purposes of this section and section 6052, the cost of group-term insurance on the life of an employee provided during any period shall be determined on the basis of uniform preml- Page 105