American Underwriters, Inc. - Page 25

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          believe that the small gap in the record as it pertains to this             
          factor counts against petitioner.  Petitioner frequently and                
          regularly advanced funds throughout the subject years to or on              
          behalf of Kenilworth, and petitioner has supplied the Court with            
          reams of documents relating to these advances.  We could sift               
          through these documents and arrive at fair estimations of the               
          debt to equity ratio on many of the relevant dates.  We refuse to           
          do so, however, because we do not believe that these estimations            
          would be meaningful enough to cause this factor to lean in one              
          direction or the other.                                                     
               This factor is neutral, and we give it no weight.                      
               ix.  Identity of interest                                              
               Advances made by stockholders in proportion to their                   
          respective stock ownership point towards equity.  A sharply                 
          disproportionate ratio between a stockholder’s ownership                    
          percentage and the corporation's debt to that stockholder                   
          generally points toward debt.  Roth Steel Tube Co. v.                       
          Commissioner, supra at 630; Estate of Mixon v. United States,               
          supra at 409; American Offshore, Inc. v. Commissioner, supra at             
          604.                                                                        
               Petitioner did not have a direct stock interest in                     
          Kenilworth.  Thus, the advances from petitioner to Kenilworth               
          bore no relationship to a stockholding that petitioner had in               
          Kenilworth.  Respondent argues that the advances were actually              
          contributions to Kenilworth's capital that were considered made             




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