Estate of Frank Johnson - Page 164




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          $100,000 in jewelry on December 5, 1989, when Revenue Officer               
          Budde prepared the collection statement, then Frank and Katherine           
          must have accumulated $30,000 cash and $100,000 in jewelry                  
          between the date of the collection statement and the date of the            
          theft.  Petitioners contend, however, that there is no evidence             
          that the cash and jewelry were accumulated between those dates.             
          We agree with petitioners.                                                  
               On the basis of our review of the entire record, we believe            
          that the collection statement did not accurately list all of the            
          assets Frank and Katherine owned as of December 5, 1989.  We have           
          made a finding of fact that Frank and Katherine had cash on hand            
          of approximately $30,000 as of January 1, 1983, and that                    
          throughout the years in issue Frank and Katherine kept                      
          approximately $30,000 cash on hand at the beginning and end of              
          each year.  Thus, there was no net change in the amount of cash             
          on hand during the years in issue.                                          
               In addition, we believe that Frank and Katherine accumulated           
          significant amounts of jewelry over their lifetimes.  The record            
          does not establish that Frank and Katherine purchased any jewelry           
          during 1990.  It is not clear, furthermore, that all of the                 
          jewelry in their safe actually belonged only to Frank and                   
          Katherine.  Frank and Katherine had a lifelong practice of                  
          gifting property, including jewelry, to their children and                  
          grandchildren.  Some of their children’s and grandchildren’s                






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