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Security for Lease Payments
The bill of sale does not provide for a sale by THP of its
interest in the power purchase agreement or the construction
contracts. THP assigned its rights under the power purchase
agreement and the construction contracts to UtilCo to secure the
payment of rents by THP under the project lease.
Purchase Price Allocation
In making its purchase price allocation, UtilCo allocated
the $32,250,000 purchase price among the bill of sale assets.
After consummating its purchase of the undivided interest, UtilCo
calculated its investment tax credit, business energy tax credit,
and depreciation for the 1987 taxable year, using that purchase
price allocation. Because UtilCo could not use all of its
general business credit in the 1987 taxable year, a portion of
that credit was carried back to the 1984 taxable year. UtilCo
did not record any goodwill or going concern value on its books
as a result of the acquisition of the undivided interest.
Expert Testimony
Petitioner's Expert
Petitioner presented the expert testimony of David C. Moody,
vice president of Stone & Webster Management Consultants, Inc.
Mr. Moody is licensed in the State of Maine as a professional
engineer and as a real estate appraiser. Mr. Moody is
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Last modified: May 25, 2011