T.C. Memo. 1998-232                                  
                               UNITED STATES TAX COURT                                
            LAIDLAW TRANSPORTATION, INC. AND SUBSIDIARIES, Petitioners v.             
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
               LAIDLAW INDUSTRIES, INC. & SUBSIDIARIES, Petitioners v.                
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
               Docket Nos. 9361-94, 9362-94.           Filed June 30, 1998.           
               Robert H. Aland, Gregg D. Lemein, Mark A. Oates, Jeffrey M.            
          O'Donnell, John D. McDonald, and Taylor S. Reid, for petitioners.           
               Thomas R. Lamons, C. Glenn McLoughlin, and Brigham J.L.                
          Sanders, for respondent.                                                    
                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               COLVIN, Judge:  Respondent determined deficiencies in and              
          overpayments of petitioners' Federal income tax as follows:                 
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