Association Cable TV, Incorporated - Page 2

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                  The issues for decision are whether petitioner is taxable on                          
            a gain on the sale of assets or whether it adopted a plan of                                
            complete liquidation on or before the sale date of the assets in                            
            accordance with the requirements of section 337 and whether                                 
            petitioner is liable for the additions to tax determined by                                 
            respondent.                                                                                 
                                          FINDINGS OF FACT                                              
                  Some of the facts have been stipulated, and the stipulated                            
            facts are incorporated in our findings by this reference.                                   
            Petitioner had its principal place of business in Florida at the                            
            time the petition was filed.  During the year in issue,                                     
            petitioner was in the business of providing cable TV service.                               
                  Association Cable TV (ACT) was incorporated in 1985.  The                             
            corporation was owned equally by four shareholders:  Franklin W.                            
            Briggs (Briggs), John L. Daniell (Daniell), Jimmy D. Morris                                 
            (Morris), and Mike Gay (Gay).  The corporation was formed to                                
            provide cable TV services to a beach resort.  Subsequently, ACT                             
            pursued and received franchise rights to provide cable TV                                   
            services to Panama City Beach, Florida.  The franchise for Panama                           
            City Beach put ACT in competition with Jones Spacelink, Ltd.                                
            (JSL), which also provided cable TV services in the area.  In                               
            October 1988, JSL expressed an interest in purchasing ACT assets,                           
            which consisted of franchise rights.  The shareholders of ACT                               
            held an 11:00 a.m. meeting on October 24, 1988, to discuss the                              
            offer from JSL and other ACT business.  The meeting was held at                             




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