J.J. Zand - Page 272

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               Respondent increased petitioner's 1977 income from Galion by           
          $57,339.32.19  The 1977 CTC receipts journal lists two payments             
          from Galion.  Both payments were deposited to the CTC CNB                   
          account.  One payment in the amount of $307.52 was allocated                
          $184.51 to Diesel Power commissions and $123.01 to CTC                      
          commissions.  The other payment in the amount of $57,154.81 was             
          designated refunds/reimbursements.  On brief, respondent fails to           
          mention the $184.51 Diesel Power commission.  Furthermore, on               
          brief, respondent concedes that the $57,154.81 is a                         
          reimbursement.  Therefore, the $57,339.32 is no longer at issue.            
               In the notice of deficiency for 1978 respondent increased              
          petitioner's commission income from Galion in the amount of                 
          $671,394.73.  Respondent now contends that $415,896.98                      
          constitutes unreported commission income to petitioner.  The CTC            
          receipts journal for 1978 lists a payment from Galion in the                
          amount of $32,560.36 in the "Other" column.  The CTC receipts               
          journal also shows a Galion payment in the amount of $638,894.37.           
          Of this payment $383,336.62 is designated as Diesel Power                   
          commissions and $255,557.75 as CTC commissions.                             


          19There is a discrepancy between the stipulated figure of $57,339.32 and    
          the notice of deficiency.  The notice of deficiency shows $57,154.81 as the 
          adjustment to 1977 income.  We accept the stipulated figure.                









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