In Kenan v. Commissioner, 114 F. 2d 217 (2d Cir. 1940), the United States Court of Appeals for the Second Circuit provided a broad definition of the term "sale or exchange." The Kenan court reviewed the Commissioner's finding of a $367,687.12 deficiency in the income taxes of the trustees. The trustees or taxpayers contended "that the delivery of the securities of the trust estate to the legatee was a donative disposition of property . . . and that no gain was thereby realized." The court pointed out that "the trustees had the power to determine whether the claim should be satisfied [in cash or securities]." Thus, "[i]f it were satisfied by a cash payment securities might have been sold on which . . . a taxable gain would necessarily have been realized." The court found that "[t]he word 'e