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At some point, at Bohn’s and Heintz’s initiative, Kenmore
began to charge a fee to Broskin for the paperwork involved in
Kenmore’s dealings with Broskin. In general, this fee amounted
to 1 percent of the amount involved in the transaction. When
Broskin used Kenmore’s credit to buy gasoline, Broskin was
required to pay the total amount promptly to Kenmore, while
Kenmore retained the 1-percent discount for prompt payment of the
supplier’s gasoline bill.
Records & Tax Returns
At the time of trial some of Kenmore’s records were missing.
At some point the Department of Justice subpoenaed some of
Kenmore’s records. A year or more later, the Department of
Justice returned the subpoenaed records. Thereafter, on June 29,
1986, many of Kenmore’s records, along with other records, were
stolen from the office of David Knoll (hereinafter sometimes
referred to as Knoll). Some of these records were recovered
after the theft, and some were never recovered.
On its tax returns for the indicated fiscal years, Kenmore
reported gross receipts, purchases, taxable income, and total tax
liability in the amounts shown in table 1.
Table 1
Item 1980 1981 1982
Gross receipts $484,527 $391,070 $1,710,217
Purchases 438,296 226,009 1,523,673
Taxable income 17,548 1,755 23,821
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