Compaq Computer Corporation and Subsidiaries - Page 1




                                                                                     








                                 T.C. Memo. 1999-220                                  


                               UNITED STATES TAX COURT                                


                            COMPAQ COMPUTER CORPORATION                               
                           AND SUBSIDIARIES, Petitioner v.                            
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 24238-96.             Filed July 2, 1999.                   


               Mark A. Oates, John M. Peterson, Jr., James M. O'Brien,                
          Owen P. Martikan, Paul E. Schick, Robert S. Walton, Tamara L.               
          Frantzen, Erika S. Schechter, A. Duane Webber, David A. Waimon,             
          Lafayette G. Harter III, and Steven M. Surdell, for petitioner.             
               Raymond L. Collins and Todd A. Ludeke, for respondent.                 

                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               COHEN, Chief Judge:  Respondent determined deficiencies and            
          a penalty in petitioner's Federal income taxes as follows:                  









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