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declarants of the statements had been able to testify as to the
statements' meanings, it would be clear that they were taken out
of context and that any reference to "the shop" was not a
reference to petitioner's shop, but to the shop at the job site.
Petitioner had the opportunity to present evidence or witnesses
at trial to explain any ambiguity in the statements found in
petitioner's business records. Petitioner's failure to do so
leads us to believe that the presentation of such evidence would
have been unfavorable to petitioner. McKay v. Commissioner,
supra; Wichita Terminal Elevator Co. v. Commissioner, supra.
Based on the entire record, we find that petitioner's
subcontracting installation transactions involved a sale of a
service and merchandise. The materials petitioner acquires and
assigns to particular jobs, as well as the materials petitioner
maintains in its warehouse are the merchandise sold in these
transactions.
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