- 3 - During the year in issue, petitioner's stockholders were: Oscar Campos, Sr., president; Oscar Campos, Jr. (Mr. Campos, Sr.'s son), vice president for sales; and Elisa C. Martinelli (Mr. Campos, Sr.'s wife), treasurer. Petitioner acquires perfumes from numerous suppliers, including Aeroboutique, S.A. (ASA), of San Juan, Puerto Rico. Between July 1, 1989, and June 30, 1990, ASA sent petitioner merchandise valued at $2,031,778. After examining the delivered merchandise, Messrs. Campos, Jr. and Sr., telephoned Edgar Balzac, the owner of ASA, threatening to return the merchandise to ASA because the goods were at the end of their useful shelf life and therefore unacceptable. Following further discussion, Messrs. Balzac, Campos, Jr., and Campos, Sr., agreed that in lieu of returning the merchandise, petitioner would keep the perfume on consignment and would pay ASA only for the merchandise that it was able to sell. By June 30, 1990, CPI was only able to sell approximately $100,000 of the merchandise received from ASA. (This amount was properly included in income for the year.) Inasmuch as the majority of the goods could not be sold, a decision was made to attempt to sell the merchandise the following Christmas season. The consigned merchandise remained in boxes on the racks in petitioner's warehouse.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011