10
Alondra, could and did take advantage of the housing boom just
then starting. As a result, UCIC and Alondra were able to
increase their sales. In its 1978 corporate income tax return,
UCII reported gross receipts of $10,938,143.51, whereas the
relevant returns for UCII, Alondra, and Edco for their 1987
taxable years reported combined gross receipts of $25,115,417.6
6The figures are not strictly comparable. The figures for
Alondra and Edco are not available for the earlier year. While
Alondra presumably had few or no sales in that year, Edco is
known to have been in existence and to have had employees.
Subtracting Edco's gross receipts of $670,771 from the total for
1986-87 reduces the total to $24,444,646.
These figures should be adjusted to account for inflation.
The Consumer Price Index published by the Department of Labor is
the measure of inflation that is used in several sections of the
Code. Secs. 1(f)(3)-(5), 32(j), 41(e)(5)(C), 42(h)(6)(G),
63(c)(4), 68(b)(2), 132(f)(6), 135(b)(2)(B), 151(d)(4),
513(h)(2)(C), 4001(e)(2). In addition, it is the measure of
inflation that courts often use where the measure is not
specified by statute, e.g., for the purpose of computing legal
costs awarded under the Equal Access to Justice Act or sec. 7430.
Jones v. Espy, 10 F.3d 690, 692 (9th Cir. 1993); Harris v.
Sullivan, 968 F.2d 263, 265 (2d Cir. 1992); Bode v. United
States, 919 F.2d 1044, 1053 n.8 (5th Cir. 1991).
If we use the Consumer Price Index, $10,938,143.51 in 1978
amounts to $19,042,313.47 in 1987 dollars. The 1986-87 total of
$24,444,646 represents only 28.37 percent growth over that
figure. If we take compounding into account, this corresponds to
annual growth of 2.8 percent if we consider the time until
1986-87 to be 9 years (3.2 percent if we use 8 years). If we use
the Producer Price Index, we get similar figures: $16,516,711.96
in 1987 dollars; total growth of 48.00 percent, representing 4.45
percent annual growth over 9 years.
For comparison, Mr. Munro's compensation received from
Pertinax rose from $216,955 in 1978 to $596,316 in 1986 and
$1,000,112 in 1987. If we use the Consumer Price Index, $216,955
in 1978 amounts to $377,698.93 in 1987 dollars. The 1987 amount
of $1,000,112 represents 164.79 percent growth over that figure.
(continued...)
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