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A.J. Concrete Services and the Four Affiliates
Alan Bone (Mr. Bone) and Jeffrey Guerrero (Mr. Guerrero)
owned 49 percent and 51 percent, respectively, of AJCS, an S
corporation incorporated in 1987 and engaged in the business of
supplying construction forming equipment and materials to various
contractors.4 AJCS, a calendar year taxpayer, maintained its
books on the percentage of completion method for financial
accounting purposes and the completed contract method for tax
purposes.
As of December 31, 1992, AJCS owned ongoing construction
contracts with a total value of $19,975,949 and estimated
projected gross profits of $8,763,221. AJCS’ schedule of
contracts reflects that, as of December 31, 1992, it had
$2,680,500 of recognized gross profit on its partially completed
contracts.
On January 1, 1993, AJCS transferred its incomplete
contracts to four C corporations: A.J. Concrete Forming of
Georgia, Inc. (Georgia); A.J. Concrete Forming Central, Inc.
4 Petitioners object to this finding of fact and contend
that AJCS “utilized its own construction forming forms, not
equipment, in the business of concrete forming services.” Our
finding, however, was agreed to and stipulated by the parties. A
party is not permitted to contradict a stipulation in whole or in
part, except in the interest of justice. See Rule 91(e); Stamos
v. Commissioner, 87 T.C. 1451, 1454 (1986). We do not find any
injustice to petitioners here and hold the parties to their
stipulation.
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