Net income in the accounting sense is the balance of gross income after the deduction of all expenses incurred in producing the income. Net income in the statutory sense differs from this concept. Many items considered as income by the accountant are specifically excluded and other items are taxed which the accountant does not regard as realized income. Gains arising from transactions in the corporation's own bonds are income, and losses are deductible. Bond premium which is amortized or which is written off when bonds are retired is income. Bond discount in similar transactions is deductible. Although such gains and losses are generally handled through the surplus account because they do not arise from ordinary business transactions, accountants do not object to the inclusion of these items in taxable income. Lump-sum advance rentals received without restrictions or provisional conditions, and bonus payments received for a lease are income in the year received instead of being spread over the rental period or the life of the lease.

Foreign commodity prices are determined by the so-called "Vergleichzszeit-system" in Germany. This involves a base commodity price on October 17, 1936 and fixes the conditions under which these prices may be raised or lowered. In accordance with the order of July 15, 1937 foreign commodities can be resold only at a price which consists of the purchase price and an economically justified profit. Export commodities from Germany are ordered to be sold at any price, if necessary, even far below production costs, the loss being recovered through the so-called export tax from the "Zusatzausfuhrverfahren." All firms which show a gain from domestic commerce have to pay the export tax to support exporters. After a year of full production under regular audits, permanent control through cost accountants, readjustments of book values to their "real" status, and other control measures or pressures, the producers might show a cost regression and large profits. These were acquired through taxation or bonds, thus securing the means for repurchasing the special drafts. The circle is closed and the credit expansion canceled after having fulfilled the desired task.