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items were less than 2 percent of its total deduction for
depreciation for the years in issue; in contrast, petitioner’s
disputed items were 288 percent and 189 percent of its total
depreciation deduction for 1995 and 1996.
Petitioner contends that comparing the disputed items to its
gross receipts shows that its accounting method did not
materially distort its income. We disagree. First, the disputed
items of the taxpayer in Cincinnati were .04 percent, .03
percent, and .07 percent of its gross receipts in the years at
issue, whereas petitioner’s disputed items were .85 percent and
.71 percent of its gross receipts in 1995 and 1996. Thus,
petitioner’s ratios were 10 to 28 times larger than those in
Cincinnati. Petitioner points out that the court in Cincinnati
compared the taxpayer’s disputed items to its total operating
expenses, and contends that we should compare petitioner’s
disputed items to its total expenses. We disagree that this
helps petitioner. In Cincinnati, the taxpayer’s disputed items
were .06 percent, .04 percent, and .01 percent of its total
operating expenses for the years in issue; petitioner’s disputed
items were .84 percent and 1.12 percent of its total expenses.
Petitioner’s ratios are 14 to 112 times larger than those in
Cincinnati.
Second, additional factors were present in Cincinnati that
have not been shown to be present here. The court in Cincinnati
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