Hospital Corporation of America and Subsidiaries - Page 4

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          Rule references are to the Tax Court Rules of Practice and                  
          Procedure.                                                                  
               The issues to be decided concern the appropriate recovery              
          classes (for tax years ended 1985 and 1986) or appropriate                  
          recovery periods (for tax years ended 1987 and 1988) for certain            
          tangible property that petitioners placed in service during those           
          years.  To decide whether petitioners utilized the proper                   
          recovery classes or periods in calculating their claimed                    
          depreciation deductions for those taxable years, we must decide             
          (1) whether the tests developed under prior law for purposes of             
          the investment tax credit are applicable, and, if so (2) whether            
          the respective properties constitute section 1245 personal                  
          property or section 1250 real property pursuant to those tests.             
                                  FINDINGS OF FACT                                    
               Some of the facts have been stipulated for trial pursuant to           
          Rule 91.  The parties' stipulations of fact are incorporated                
          herein by reference and are found as facts in the instant case.             
               Petitioners were members of an affiliated group of                     
          corporations whose common parent was Hospital Corporation of                
          America (HCA), which was incorporated under the laws of the State           
          of Tennessee.2  HCA maintained its principal offices in                     

          2   On Feb. 10, 1994, HCA was merged with and into Galen                    
          Healthcare, Inc., a subsidiary of Columbia Healthcare Corp. of              
          Louisville, Kentucky, and the subsidiary changed its name to HCA-           
          Hospital Corp. of America.  On that same date, the parent changed           
                                                             (continued...)           




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