- 14 - at 686-687; Bratulich v. Commissioner, T.C. Memo. 1990-600. The Commissioner's reconstruction need only be reasonable in light of all the surrounding facts and circumstances. See Petzoldt v. Commissioner, supra at 687; Giddio v. Commissioner, 54 T.C. 1530, 1533 (1970); Schroeder v. Commissioner, 40 T.C. 30, 33 (1963). Respondent calculated petitioner's unreported income on the basis of the amount of marijuana sold to Mr. Erickson, approximately 37,000 pounds. Respondent deducted 5,000 pounds for wrapping and packaging material and 7,000 pounds to allow for the marijuana that Mr. Erickson returned as wet and unusable. Respondent, thus, determined that Mr. Erickson purchased a total of 25,000 pounds of usable marijuana. Respondent found that petitioner and Mr. Lubiejewski sold the marijuana to Mr. Erickson for approximately $280 per pound. Based on a net weight of 25,000 pounds of marijuana sold, respondent calculated the gross receipts from the sale as $7 million. Because these receipts were split equally between petitioner and Mr. Lubiejewski, respondent determined that petitioner's gross receipts were $3,500,000.Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
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