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consequence, we conclude EIC did not meet its burden and find
that the proper amount of income for 1989 under the accrual
method is $19,484,214.
Second, respondent contends in the second stipulation of
settled issues that EIC is required to report the following
income from sales that occurred prior to March 1, 1986:
Year Amount of Adjustment
1989 $337,668
1990 418,548
1991 292,745
1992 291,437
EIC contends that it does not have to report any income from
sales that occurred prior to March 1, 1986. However, a witness
for EIC, Michael Cummins, a C.P.A. who had served as EIC's
interim controller, testified on cross-examination that EIC would
have to report these amounts if the accrual method were found to
be the proper method of accounting. EIC did not address this
issue in its opening brief nor its reply brief. Accordingly, we
treat this as a concession by EIC and find for respondent.
Third, the parties disagreed in the fourth stipulation of
settled issues as to the proper amount of income that the Wangs
7(...continued)
resolution. Nevertheless, on brief, petitioners do not further
address the differences between their calculation of accrual
income and the amount determined by respondent.
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