Boyd Gaming Corporation, F.K.A. The Boyd Group and Subsidiaries - Page 45

                                       - 45 -                                         
          Petitioners do not limit an employee's activities when he or she            
          travels to or from work in uniform.  The employees who travel               
          from work in uniforms typically change their uniforms before                
          going out on personal business after work, but some uniformed               
          employees have gone out after work in uniform and eaten at a                
          competitor's restaurant.                                                    
               Petitioners make no attempt to account for the actual cost             
          of the meals that are served at the Cafeterias.  In the case of             
          Stardust, petitioners expense a flat charge per month, regardless           
          of the number of meals served, based on an estimate of food costs           
          that was made before the subject years.  For the other                      
          Properties, petitioners multiply a fixed amount (ranging from               
          $1.75 to $2) by the number of full-time employees on the rolls of           
          each department in each month.  In accordance with this expending           
          policy, petitioners ascertained that their direct costs for the             
          Cafeterias for the 1987 and 1988 taxable years were as follows:             
                                         1987           1988                          
                    CHC                   $459,205       $616,483                     
                    Fremont                372,705        388,546                     
                    Sam's Town          741,366        811,628                        
                    Stardust             1,215,638      2,030,010                     
                    Total             2,788,914      3,846,667                        
          Petitioners deducted all of these costs, with the exception of              
          the following amounts for 1987:                                             
                    CHC                  $68,044                                      
                    Fremont               45,781                                      
                    Sam's Town          98,012                                        
                    Stardust             145,978                                      
                    Total                357,815                                      
                                                                                     



Page:  Previous  35  36  37  38  39  40  41  42  43  44  45  46  47  48  49  50  51  52  53  54  Next

Last modified: May 25, 2011