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the only witness. We found Mr. Hawthorne's testimony to be
general, conclusory, and/or vague in certain material respects.
Before turning to the various issues presented, we note that we
have considered all of petitioners' arguments that are not
discussed herein and find them to be without merit.
Cash Distributions on Certain Stock
Petitioners reported as dividend income (1) in their return
for 1992 all cash distributions that Mr. Hawthorne received from
Gulf States during that year and (2) in their return for 1993 all
cash distributions that he received from Centerior Energy and
from Portland General during that year. With respect to the cash
distributions that Mr. Hawthorne received during 1992 from Gulf
States, petitioners contend that those distributions are liqui-
dating distributions, and not dividends. With respect to $609.91
of the cash distributions totaling $1,440 that Mr. Hawthorne
received from Centerior Energy and all of the cash distributions
that he received from Portland General during 1993, petitioners
contend that those distributions do not constitute dividend, or
any other kind of, income. That is because, according to peti-
tioners, the respective payors of those cash distributions
reported them in corrected Forms 1099-DIV as nontaxable distribu-
tions.
Turning first to the cash distributions that Mr. Hawthorne
received from Gulf States during 1992 on the shares of preferred
stock that he owned in that company, the record establishes that
Gulf States reported those distributions in Form 1099-DIV as
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