Newhouse Broadcasting Corp. and Subsidiaries, et al. - Page 10




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                  3.  MetroVision’s Activities Pursuant to the Franchise                               
                  MetroVision commenced construction of the Livonia cable                              
            system in 1984.  By 1985, construction was substantially                                   
            complete.  During the 1988-90 period, the construction activity                            
            undertaken by MetroVision was to (1) extend the cable system into                          
            newly constructed subdivisions, (2) deliver service to new                                 
            customers in existing service areas, and (3) replace worn out,                             
            broken, or otherwise obsolete cable television equipment.                                  
            Respondent does not dispute, and we find, that those activities                            
            were required by and undertaken pursuant to the terms of the                               
            Livonia Franchise Agreement.  No significant changes to the                                
            system, in terms of the number of channels or the channel                                  
            selection, were undertaken during the 1988-90 period.                                      
                  Petitioner has been unable to locate the invoices, purchase                          
            orders, or any other list of the items of property placed in                               
            service during the audit years for which it is claiming                                    
            transition ITC (the subject property).  As a result, petitioner                            
            has been unable to demonstrate that the subject property is                                
            property described in the Livonia Franchise Agreement. The                                 
            parties have stipulated, however, as to the authenticity of                                
            certain charts of accounts and general ledger materials                                    
            pertaining to MetroVision which show, by dollar amount and                                 
            general category of expenditure (e.g., "Distribution System",                              
            "Head End Equipment", "Local Production Equipment", "Traps &                               






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