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assertion, petitioner overlooks an essential element; namely that
the mechanical application of the two methods must be preceded by
a determination of the factual foundations for determining
taxable income and experience. It is the foundation of
petitioner's experience that is missing and would need to be
supplied. In this connection, we note that apparently petitioner
first utilized the experience method in certain of the years
involved herein in Forms 1139 which it filed to claim tentative
refunds. Those forms were never submitted in the prior
proceeding and were brought to the attention of the Court for the
first time as attachments to petitioner's objections to
respondent's computation for entry of decision. Moreover, in its
motion for summary judgment, petitioner represented that it had
used the percentage of income method in filing its tentative
refund application; i.e., its Forms 1139.4 This representation
4 The following is a quotation from the affidavit of its
Executive Vice President and Chief Financial Officer in support
of petitioner's motion for summary judgment:
During certain of the taxable years ended December
31, 1968 through December 31, 1982, Petitioner
calculated the annual addition to its reserve for bad
debts under the percentage of taxable income method
provided in �593(b)(2) of the Code and deducted such
addition in each such taxable year on its federal
income tax returns. In conjunction with Petitioner's
filing of its Tentative Refund Applications stemming
from its carryback of the NOL from the 1980 tax year
(as well as NOLs from other tax years) to the tax years
at issue herein, Petitioner, in redetermining its
taxable income and federal income tax for such years,
recomputed its allowable bad debt deductions under the
percentage of taxable income method for such affected
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