Estate of Leon Israel, Jr., Deceased, Barry W. Gray, Executor, and Audrey H. Israel - Page 37

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           In these circumstances, the analysis in the majority opinion of            
          the forward contracts in question and the ways in which they were           
          handled by Holly and AGS is consistent with and supported by                
          Judge Friendly's analysis in Commissioner v. Ferrer, supra, and             
          its ancestors and descendants.  The cases at hand, then, are the            
          latest ones in which it is appropriate to observe that "the                 
          'formalistic distinction' between two-party and three-party                 
          transactions that was criticized in Ferrer is fast becoming a               
          footnote to history."  Bittker & McMahon, Federal Income Taxation           
          of Individuals par. 32.1[5] at 32-5, 6 (1995).                              


           CHABOT, JACOBS, and PARR, JJ., agree with this concurring                  
          opinion.                                                                    

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