22 2. Petitioner's Expert Witnesses a. Description of the Testimony Petitioner called Denton R. Hammond (Hammond) and Gross as expert witnesses. Respondent called no expert witnesses. Hammond and Gross are certified public accountants. Hammond specializes in construction industry accounting. Gross prepared Eagle’s tax returns for the years at issue in this case and conducted the study relating to Eagle’s deposits. Hammond and Gross concluded that: (i) Eagle accounted for payments it received from customers for panelized house kits consistently for both financial and tax purposes, (ii) the method of accounting Eagle used for tax purposes conformed to its books and records and its issued financial statements, (iii) Eagle's method of accounting properly matches income and expenses for financial accounting purposes, and (iv) Eagle's method of accounting complies with GAAP. Hammond also concluded that Eagle's method of accounting clearly reflects its income for the years in issue, is as accurate in reporting the results of operations as accounting systems allow, and complies with GAAP as provided in the AICPA’s Statement of Position 81-1, “Accounting for Performance of Construction-Type and Certain Production-Type Contracts”. He also concluded that respondent's method mismatches items of revenue and expense under GAAP.Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Next
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