- 32 -
is a reasonable allowance for discretionary use. See, e.g.,
Jurkiewicz v. Commissioner, T.C. Memo. 1955-318 (5-percent
reduction for spillage, waste, and gratuities sustained).
Consequently, we find that petitioner's gross receipts from the
sale of bottled beer are as follows:
Bottled Beer
Year Gross Receipts1
1987 $135,011.80
1988 116,740.80
1989 118,071.80
1990 62,920.00
1See Table III in the attached appendix.
4. Wine Sales
Petitioner contends that respondent erred by calculating
gross receipts from the sale of wine on the assumption that each
glass of wine sold contained only 4 ounces of wine. To the
contrary, petitioner asserts that each glass of wine sold
contained 6 ounces of wine.29
Respondent seeks to use an apparent inconsistency in
petitioner's testimony to impugn petitioner's claim regarding the
29 Petitioner and respondent also disagree on the proper
discretionary use percentage to be applied in the calculation of
gross receipts from the sale of wine. Petitioner asserts that 15
percent is the proper discretionary use allowance for all wine
sales. On brief, and in respondent's stipulated calculations,
however, respondent contends that the proper discretionary use
allowance for wine sales is 20 percent for each .750-liter
bottle, 1.5-liter bottle, and 3-liter bottle and 40 percent for
each liter bottle. We conclude that respondent has conceded that
the proper discretionary use allowance for wine sales is 20
percent or 40 percent, for the respective size bottle.
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