S. Clark Jenkins and Mary P. Jenkins - Page 13

          is to punish and deter fertilizer manufacturers who fail to                 
          comply with the fertilizer laws.                                            
               We are not bound by the opinion of an expert witness.  We              
          will accept or reject expert testimony when, based on the record,           
          it is appropriate to do so.  Estate of Newhouse v. Commissioner,            
          94 T.C. 193, 217 (1990).  We may choose to accept the opinion of            
          one expert in its entirety, Buffalo Tool & Die Manufacturing Co.            
          v. Commissioner, 74 T.C. 441, 452 (1980), or we may be selective            
          in the use of any portion of that opinion; Seagate Technology,              
          Inc. & Consol. Subs. v. Commissioner, 102 T.C. 149, 186 (1994).             
               We are satisfied that the payments at issue were designed to           
          compensate the consumer of the deficient fertilizer.  The North             
          Carolina fertilizer law provides:  "All penalties assessed under            
          this section shall be paid to the consumer of the lot of                    
          fertilizer represented by the sample".  N.C. Gen. Stat. sec. 106-           
          665(c).  The Virginia fertilizer law provides:  "If the analysis            
          shows that the fertilizer is deficient * * * then an assessment             
          * * * shall be paid to the consumer by the guarantor."  Va. Code            
          Ann. sec. 3.1-106.13.A (Michie 1994).  The quoted language                  
          indicates that the respective State legislatures intended to                
          compensate the consumer of the deficient fertilizer.                        
               The two-step method used to calculate the penalty also                 
          supports the conclusion that the payment to the consumer is                 
          remedial.  Each step of the calculation accounts for a separate             
          loss to the consumer.  First, the value of the deficient                    

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