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OPINION ........................... 453
Issue 22. Whether Respondent Correctly Made Adjustments to
the Rental Income, Depreciation, Interest Expense, and
Investment Tax Credits Claimed by Investment Research
Associates, Ltd. (IRA) in Connection with Equipment
Leasing Transactions for 1979, 1980, and 1982 Through
1989 .......................... 465
FINDINGS OF FACT ...................... 465
I. Background and Adjustments Made in Deficiency Notices . 465
A. IRA and Cedilla Investment ............ 465
1. Schott .................... 467
2. Mallin .................... 467
B. Richard Uhl, Funding Systems Corp., and Funding
Systems Asset Management Corp. .......... 469
C. FSAM Partnership ................. 470
II. Equipment Leasing ................... 470
A. Equipment Leasing Generally ............ 470
B. General Facts Relative to Lack of Economic
Substance, Profit Motive and Residual Value .... 470
C. General Facts Relating to Invalid Indebtedness and
Financing Circularity ............... 472
D. Miscellaneous Additional Facts Generally
Applicable to the Transactions .......... 476
III. The Specific Leasing Transactions ........... 476
A. Cedilla Invest.-1976 Domestic (O.P.M.
Transaction) ................... 476
B. Cedilla Invest.-1977 Domestic Transaction Master
Lease Transaction) ................ 478
C. Cedilla Invest.-1979 Foreign Transaction (British
Aerospace Transaction) .............. 479
D. IRA-1980 Domestic Transaction ("Mini Computer
Transaction") ................... 487
E. IRA-1980 Foreign/Domestic Transaction ("Alfred
Teves Transaction") ............... 490
F. Cedilla Invest. "Lexet Transactions" ....... 492
G. Cedilla Invest. "Ben Energy Transactions" ..... 495
H. Cedilla Invest. "Dard Systems Transactions" .... 498
OPINION ........................... 501
I. Leasing Transactions Generally ............. 501
II. Specific Leasing Transactions ............. 516
A. Cedilla Invest.-1976 Domestic (O.P.M.
Transaction) ................... 516
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