- 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 NextLast modified: May 25, 2011