George A. and Marysue Coward - Page 13

            the purchase price thereof.  Thus, the partnership acquired the                              
            cattle by purchase, and the partnership, therefore, had basis in                             
            the cattle equal to the cost.  Sec. 1012.                                                    
                  Respondent next argues that petitioners have failed to                                 
            establish when the cattle were placed in service.  Petitioners                               
            argue that it is not significant when the cattle were placed in                              
            service if it occurred within the taxable year 1978.                                         
                  Upon consideration, we are not persuaded by either argument                            
            in its entirety.  The majority of the cattle was identified as                               
            bred heifers, meaning these cows had been impregnated.  The                                  
            average gestation period of cattle is approximately 9 to 10                                  
            months.6  There is nothing in the record indicating what happened                            
            to the cattle during the 11 months between the sale by Hoyt &                                
            Sons and the acquisition of the cattle by the partnership for its                            
            breeding operations.  However, given the considerable passage of                             
            time, some, if not all, of the bred heifers must have given birth                            
            during this time, and we believe this activity constitutes                                   

            characterizes such acceptance as an adoption.  See Restatement,                              
            Agency 2d, sec. 104 & comment (a) (1958).  For these purposes,                               
            the labels are not significant.                                                              
            6     The average gestation period for cattle is 284 days, with a                            
            variation range of 260-300 days.  See 5 New Encyclopedia                                     
            Britannica, Gestation 227 (15th ed. 1993).  "It is generally                                 
            accepted that courts may take judicial notice of scientific facts                            
            which are commonly known and which may be found in encyclopedias,                            
            dictionaries, or other publications."  Mattes v. Commissioner, 77                            
            T.C. 650, 653 n.3 (1981).                                                                    

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