differing computations under Rule 155.1
In our first opinion in this case, Pope & Talbot, Inc., &
Subs. v. Commissioner, 104 T.C. 574 (1995) (Pope & Talbot I), on
motions for partial summary judgment, we held that under section
311(d), petitioner's gain on the distribution of appreciated
property is to be determined as if petitioner sold its interest
in the appreciated property at fair market value on the date of
distribution. In our subsequent opinion, Pope & Talbot, Inc., &
Subs. v. Commissioner, T.C. Memo. 1997-116 (Pope & Talbot II), we
determined the fair market value of the appreciated property on
the date of distribution. In addition, we held that petitioner
may offset distribution expenses against its section 311(d) gain.
In Pope & Talbot II, we made findings of fact which are
summarized as follows. During 1985, petitioner's operations
included timber, land development, and resort businesses in the
State of Washington. On December 4, 1985, petitioner's
shareholders approved a plan to transfer the assets from its
Washington businesses to a newly formed limited partnership,
which was to be owned by petitioner's shareholders (the
Partnership). Pursuant to this plan, petitioner transferred to
the Partnership approximately 78,000 acres of Washington
timberlands and its Washington land development and resort
businesses, which included an additional 4,400 acres. These
1All Rule references are to the Tax Court Rules of Practice
and Procedure, and all section references are to the Internal
Revenue Code in effect for the years in issue.
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