- 39 -
In the instant case, we make our estimate on the basis of
Nite-Line's records, stipulated for trial, which indicate that
petitioner advertised in Nite-Line 44 weeks during 1987, 48 weeks
during 1988, 39 weeks during 1989, and 44 weeks during 1990.
Available back copies of Nite-Line demonstrate that, during the
years in issue, petitioner regularly listed three band nights
(typically Thursday, Friday, and Saturday) in each advertisement.
We also credit petitioner's testimony concerning the amounts he
paid bands booked to play at the Bullfrog, which indicates that
he generally paid Thursday night bands $225 for each performance.
Petitioner's testimony also indicates that he typically paid
Friday and Saturday night bands $300, although he occasionally
paid up to $500 for popular bands. Petitioner's testimony is
corroborated by that of Mr. Blackburn, who indicated that in
Jamestown, during the years in issue, the going rate for a
Thursday night band was at least $250 and that the going rate for
a weekend band (i.e., Friday or Saturday night) was $250 to $350.
Using the foregoing parameters, petitioner computed band
expenses in the amounts of $36,300, $39,600, $32,175, and $26,400
for 1987, 1988, 1989, and 1990, respectively.38 The Nite-Line
37(...continued)
Circuit. Thus, efficient and harmonious judicial administration
calls for us to apply the Cohan rule. Golsen v. Commissioner, 54
T.C. 742, 757 (1970), affd. 445 F.2d 985 (10th Cir. 1971).
38 Petitioner computed the amount of his deductible band
(continued...)
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