Lorvic Holdings, Inc. - Page 1

                                        T.C. Memo. 1998-281                                             


                                     UNITED STATES TAX COURT                                            


                             LORVIC HOLDINGS, INC., Petitioner v.                                       
                         COMMISSIONER OF INTERNAL REVENUE, Respondent                                   


                  Docket Nos. 3408-97, 15611-97.      Filed August 4, 1998.                             



                  John P. Barrie, Dana Lasley, and Elizabeth Ann Smith,                                 
            for petitioner.                                                                             
                  Robert J. Burbank, for respondent.                                                    



                            MEMORANDUM FINDINGS OF FACT AND OPINION                                     


                  HAMBLEN, Judge:  Respondent determined the following                                  
            deficiencies in petitioner's Federal income tax:                                            







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