Michael Ferguson and Valene Ferguson - Page 31

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          S.C. Johnson & Son, Inc. v. Commissioner, 63 T.C. 778 (1975), did           
          not end with a determination that the taxpayer did not have a               
          legal right to the appreciation in the currency contracts prior             
          to delivery of the British pounds on the maturity date.  Indeed,            
          this Court, among other things, considered as significant the               
          fact that the taxpayer had not taken any steps to close out its             
          forward position under the sales contracts prior to the gift.               
          That inquiry would have been unnecessary if the issue as to                 
          whether a taxpayer has a legally enforceable right to income is             
          dispositive of the anticipatory assignment of income analysis.              
          We, therefore, consider petitioners' argument as only one factor            
          in our inquiry to determine the reality and substance of the                
          events surrounding the merger agreement, the tender offer, and              
          the gifts to the Charities.                                                 
               Petitioners contend that DC Acquisition was not legally                
          obligated to accept the tendered shares and proceed with the                
          merger until September 12, 1988, when DC Acquisition announced              
          its acceptance of the tendered shares.  Petitioners characterize            
          DC Acquisition's right to proceed with the merger as an option in           
          light of the material change condition to the tender offer and              
          the occurrence of the fire that destroyed AHC's product                     
          manufacturing plant on August 25, 1988.  Petitioners assert that            
          DC Acquisition waived the material change condition for the first           
          time when it announced acceptance of the tendered shares.                   
               The occurrence of the fire to AHC's product manufacturing              
          plant and the fact that DC Acquisition and CDI proceeded with the           



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