Turner Broadcasting System, Inc. and Subsidiaries - Page 14

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               e.  Tracinda owned 39,515,327 shares of UA (79.44 percent),            
          22,973,585 shares of TBS Preferred Stock (46.18 percent), and               
          $76,299,122 cash, which includes $64,533,655 ($9.18 per share)              
          cash paid in escrow by the Subscribing Public pursuant to                   
          Tracinda's offering of UA shares.                                           
               f.  Kerkorian owned 1,931,840 shares (3.88 percent) of TBS             
          Preferred Stock and $38,636,800 cash.                                       
               g.  The MGM public shareholders owned 24,839,712 shares                
          (49.93 percent) of TBS Preferred Stock and $496,794,240 cash.               
               h.  The Subscribing Public owned 7,029,810 shares (14.13               
          percent) of UA, for which they had paid $64,533,655 ($9.18 per              
          share).                                                                     
               i.  UA executives owned 3,200,000 shares of UA (6.43                   
          percent), for which they subsequently paid $28,800,000 to                   
          Tracinda.                                                                   

                                     Discussion                                       

          A.  Whether Summary Judgment Is Appropriate                                 

               Summary judgment is intended to expedite litigation and                
          avoid unnecessary and expensive trials.  Northern Ind. Pub. Serv.           
          Co. & Subs. v. Commissioner, 101 T.C. 294, 295 (1993); Florida              
          Peach Corp. v. Commissioner, 90 T.C. 678, 681 (1988); Shiosaki v.           
          Commissioner, 61 T.C. 861, 862 (1974).                                      







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