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17. Petitioner must recognize additional "interest income",
computed under section 482, for year ending June 30, 1989, in the
amount of $150,000. The $150,000 is subject to an addition to
tax under section 6651(a)(1). The additions to tax under
sections 6653(a)(1) and 6661(a) do not apply to the $150,000.
18. Petitioner does not have to recognize any "interest
income", computed under section 482, for years ending June 30,
1990, 1991, and 1992. The penalties under section 6662(a), (d)
do not apply to the "interest income", computed under section
482, for years ending June 30, 1990 and 1991. There are no
additions to tax under section 6651(a)(1) and (2), or penalty
under section 6662(a) relating to the "interest income", computed
under section 482, for year ending June 30, 1992.
19. Section 59A controls the environmental tax deduction,
and that deduction will be calculated based on the Court's final
determination as to the taxable income for years ending June 30,
1989, 1990, 1991, and 1992.
20. For the years in issue, petitioner was a member of a
controlled group, as defined in section 1563. The income tax
brackets, environmental tax exemptions, and any other tax
benefits described in section 1561, will be allocated equally
among the members of the controlled group as specified in section
1561 for years ending June 30, 1989, 1990, 1991, and 1992. For
years ending June 30, 1989 and 1990, the controlled group
consisted of petitioner and Apollo Produce Distributing, Inc.
For years ending June 30, 1991 and 1992, the controlled group
consisted of petitioner, Apollo Produce Distributing, Inc., and
RCLA, Inc.
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