M.S. Food Stores, Inc. - Page 1

                                       T.C. Memo. 1996-218                                             


                                     UNITED STATES TAX COURT                                           


                             M.S. FOOD STORES, INC., Petitioner v.                                     
                        COMMISSIONER OF INTERNAL REVENUE, Respondent                                   
             FREDERICK MALCOLM SUTTON AND CAROLYN P. SUTTON, Petitioners v.                            
                        COMMISSIONER OF INTERNAL REVENUE, Respondent                                   


                  Docket Nos. 11631-93, 11632-93.           Filed May 6, 1996.                         


                  A. Rexford Willis III, for petitioners.                                              
                  James R. Rich, for respondent.                                                       


                           MEMORANDUM FINDINGS OF FACT AND OPINION                                     

                  PARKER, Judge:  Respondent determined deficiencies in                                
            Federal corporate income taxes, additions to tax, and a penalty                            
            for petitioner M.S. Food Stores, Inc., as follows:                                         







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