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lack of potential value is of no consequence. Morton v.
Commissioner, supra at 1279; see also Steadman v. Commissioner,
supra at 377.
The record in this case leads us overwhelmingly to the
conclusion that G�nther had no potential value as of May 31,
1992. After a thorough investigation prompted by the discovery
of the Omega transaction, petitioner understandably concluded
that G�nther’s financial condition was so dire that petitioner
had no option but to minimize its losses and dispose of G�nther
as soon as possible. Petitioner considered several alternatives
in making its decision, ultimately opting for a course of action
that was designed to avoid G�nther’s bankruptcy under German law
and any default by G�nther on its bank loans. Petitioner
concluded that a bankruptcy proceeding and/or a default on
G�nther’s bank loans could result in the assertion of a variety
of contingent and potential liabilities and generate an even
greater financial loss attributable to its investment in G�nther
than that projected from G�nther’s orderly disposal.
Both of petitioner’s experts opined that G�nther was
finished as a going concern and that its stock was worthless as
of May 31, 1992. Respondent offered no expert testimony to
refute their conclusions. Moreover, although respondent argues
that certain assets were not listed in G�nther’s FYE April 30,
1992, commercial report, he offered no evidence to rebut the
testimony of petitioner’s witnesses that the assets in question
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