Washoe Ranches # 1, Ltd. Washoe Ranches #2, Ltd., Washoe Ranches #3, Ltd., Washoe Ranches #4, Ltd., Washoe Ranches #5, Ltd., Washoe Ranches #6, Ltd., Washoe Ranches #7, Ltd., Walter J. Hoyt III, - Page 15

                                       - 15 -                                         
               We are not persuaded by this argument.  Even if the cattle             
          transferred were depreciable registered shorthorn heifers,                  
          petitioner has stipulated that the cattle had zero basis, and as            
          explained above, we will not set aside this stipulation.                    
          Therefore, the cattle would be fully depreciated and outside of             
          the provision limiting the number of cattle held subject to                 
          depreciation.                                                               
               In the alternative, petitioner argues that because                     
          respondent calculated lower interest payable by the partnerships            
          for the years in issue consistent with the agreement, in some of            
          the years they paid cash to Hoyt & Sons Ranches in excess of the            
          amounts due.  This cash, petitioner asserts, should be applied to           
          any future principal and interest due on the notes payable to               
          Hoyt & Sons Ranches before the partnerships recognize any                   
          ordinary income on the transfer of cattle in payment.                       
               Respondent argues that the stipulation clearly negates any             
          claim that the partnerships made payments on the notes with cash,           
          and that they are bound by the stipulation.                                 
               The Court will hold the parties bound by a stipulation                 
          unless justice requires otherwise.  Rule 91(e).  The Court may              
          modify or set aside a stipulation which is clearly contrary to              
          the facts revealed on the record.  Cal-Maine Foods v.                       
          Commissioner, supra.                                                        
               Petitioner attached schedules entitled "Partnerships Cash              
          Reconciliation" to petitioner's posttrial brief for each of the             




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