Investment Research Associates - Page 367




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          specific exclusion in the parties' written stipulation of those              
          portions of the Estate of Cook record regarding only ARC and BRC.            
               Preliminarily, we note that the parties, for purposes of the            
          instant cases, generally stipulated in evidence the Estate of                
          Cook record, except for such evidence that related only to ARC               
          and BRC.  Thus, as we interpret the parties' stipulation, the                
          evidence presented in Estate of Cook that would be relevant to               
          ARC, BRC and IRC alike (not including perhaps the testimony of               
          Dr. Charles Altschuler, on which the Court does not rely) would              
          be considered as evidence in the instant cases and could be                  
          considered in resolving the IRC issues for 1979.  We do not                  
          construe the parties' stipulation to limit the evidence here to              
          only those portions of the Estate of Cook case's evidentiary                 
          record that Kanter considers "relevant" to IRC and himself.                  
               On this record, we conclude that respondent has established             
          that Kanter was not entitled to deduct the claimed 1979 IRC                  
          research and development expenses under section 174(a).  The                 
          evidence shows that there was no realistic prospect of IRC's                 
          entering into a trade or business to exploit the technology                  
          relating to the NPT-15392 compound being developed under the IRC-            
          Newport R&D and License Agreement because there was essentially              
          nothing that IRC could acquire.  Virtually anything that Newport             
          developed would almost certainly be a patentable property right              
          that ipso facto could not be owned by IRC.  In Estate of Cook                






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