- 46 -
on their fair market value and then the gain or loss on the
individual assets determined. Other than the assets of cash and
Treasury bills, the record before us contains little information
with which to ascertain the fair market value of the individual
assets. In this connection, we note that any such allocation
would require us to determine specific fair market values in
contrast to the range standard which we were able to apply in
respect of the inurement issue.
Petitioner's allocation of the purchase price has several
defects, one of which is that it is based upon book values of
assets rather than fair market values. In any event, we have
increased the purchase price, and therefore decreased
petitioner's loss by $300,000 representing obligations to
petitioner's pension plans assumed by AMH. We have also
determined that the FPCF expenses are not deductible in the post-
1983 years, and the same reasoning applies to the $354,580
reported as an FPCF item on the Form 990 for fiscal 1983. These
two adjustments total $654,880 and reduce petitioner's claimed
loss to $51,942. We are satisfied that a sufficient portion of
the loss on the sale of the hospital would be capital so as to
eliminate any remaining loss, if there was a loss at all.
Regardless, petitioner has not met its burden of proving, see
supra p. 21, that it had a net operating loss for 1983.
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