- 40 - 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.Page: Previous 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Next
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