- 17 -
At trial, little evidence was presented with regard to these
claimed expenses. With regard, however, to the $106,801 claimed
for 1985, there was admitted into evidence at trial an exhibit
that does appear to substantiate $21,222 in trucking expenses
incurred in 1985 by L & L Supply, which amount we allow.
The burden of proof with regard to petitioners' entitlement
to these claimed expenses is on petitioners. Rule 142(a); Welch
v. Helvering, 290 U.S. 111 (1933). Petitioners have provided no
basis for further estimating the operating and trucking expenses
of L & L Supply. With the exception noted of $21,222 in trucking
expenses for 1985, we deny petitioners' claim to additional
operating and trucking expenses with regard to L & L Supply.
With regard to claimed additional inventory or cost-of-
goods-sold expenses of L & L Supply, petitioners, on brief,
concede the figures respondent used each year for beginning and
ending inventory of L & L Supply. At trial, petitioners offered
exhibit 26 as to 1986 purchases and exhibits 6 and 24 as to 1987
purchases of L & L Supply. Information, however, in those
exhibits is suspect. For example, in exhibit 26 a claimed
payment of $22,779 for an inventory item appears actually to be a
payment to an attorney. In exhibits 6 and 24, certain claimed
payments for inventory items are represented by cashier's checks
that show petitioners as payees. Petitioners claim that since
many suppliers would only deal with them in cash, by cashing the
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011