Ted W. Gleave - Page 40

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          plus $2,240.57 for the trucking)13, (2) gross receipts in the               
          amount Kenmore received from selling the 100,000 gallons of fuel,           
          and (3) no double inclusion of gross receipts for Kenmore.  Thus,           
          prebuys do not result in overstating Kenmore’s gross receipts,              
          nor in overstating Kenmore’s taxable income.                                
               Petitioners assert on brief that “More than $100,000. was              
          placed in [Kenmore’s account] by * * * Gleave at the time of the            
          sale of the business and equipment of Ted’s Nursery”.  Gleave               
          sold Ted’s Nursery about 1978.  If Gleave deposited the proceeds            
          of this sale to Kenmore’s Account more or less contemporaneously            
          with the sale, then this deposit did not increase Kenmore’s gross           
          receipts for fiscal 1981 or 1982.  Also, Kenmore reported on its            
          fiscal 1980 tax return that the loans from stockholders account             
          showed an opening fiscal 1980 balance (i.e., a balance as of                
          Sept. 1, 1979) of only $14,632 and a closing (as of Aug. 31,                
          1980) balance of only $4,481.  Supra table 2.  Thus, even if we             
          were to credit petitioners’ contentions, substantially all the              
          proceeds of the Ted’s Nursery sale had already worked through               
          Kenmore’s Account before any of the years in issue in the instant           
          cases.                                                                      


               13   We note a $49.50 arithmetic error on Kenmore’s ledger             
          sheet in computing the balance after the last delivery.  The net            
          to Broskin should have been $2,290.07, instead of $2,240.57.  A             
          careful examination of the ledger sheet suggests that it                    
          originally did show $2,290.07, but someone changed the 9 to 4 and           
          changed the 0 to 5.  We have not been given a reconciliation or             
          other explanation.  This $49.50 differential does not affect any            
          of our conclusions.                                                         




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