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income of $14,522 and $38,248 for 1990 and 1991, respectively,
attributable to a certain covenant not to compete. We hold that
they did.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
Petitioners resided in Scottsdale, Arizona, at the time the
petition was filed.
From approximately 1982 through 1988, petitioner Donald L.
Chiappetti (petitioner) practiced dentistry as an employee of his
wholly owned corporation, Chiappetti Professional Corporation
(CPC).
Pursuant to a written purchase contract dated December 31,
1988 (purchase contract), CPC sold certain of its assets to
petitioner's son, Donald C. Chiappetti, a dentist. The purchase
contract defined CPC as the "Seller" and Donald C. Chiappetti as
the "Buyer".1 Section 1 of the purchase contract provided that
"Seller agrees to sell and Buyer agrees to buy * * * only those
items described in Exhibit A attached hereto and incorporated
herein". Exhibit A attached to the purchase contract identified
the "Dental Practice Assets to be purchased by Donald Craig
Chiappetti from Chiappetti Professional Corporation". That
exhibit and section 4 of the purchase contract allocated the
1 Although the purchase contract defined Donald C. Chiappetti as
the "Buyer", certain sections of that contract refer to him as
the "Purchaser".
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