- 51 -
that the machines actually had a fair market value of not more
than $50,000 each in the fall of 1981.13
We accord no weight to the Carmagnola reports submitted by
petitioners. The projected valuations therein were based on
inadequate information, research, and investigation, and were
subsequently rejected and discredited by their author. In one
preliminary report, Carmagnola states that he has "a serious
concern of actual profit" of a Sentinel EPE recycler and that to
determine whether the machines actually could be profitable, he
required additional information from PI. Carmagnola also
indicates that in preparing the report, he did not have
information available concerning research and development costs
of the machines and that he estimated those costs in his
valuations of the machines.
Respondent rejected the Carmagnola reports and considered
them unsatisfactory for any purpose, and there is no indication
in the records that respondent used them as a basis for any
determinations in the notices of deficiency. Even so, counsel
13 The parties stipulated as to the authenticity of the
Carmagnola reports, but respondent objected on grounds of
relevance, materiality and hearsay. Since these reports have
been included in the record in many other plastics recycling
cases, we admitted them into evidence with the caveat that if Mr.
Carmagnola was not called to testify, we expected to give minimal
weight to the reports.
Page: Previous 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 NextLast modified: May 25, 2011