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certificates 4 and 6 reflected purported assignments of the stock
to which each such certificate pertained that contained what we
consider on the record before us to be significant irregulari-
ties.22 We shall not rely on the copies of Burien Nissan stock
certificates 4, 6, and 9 that we found to be incomplete and
questionable in certain material respects.
With respect to the constructive dividend issue, petitioners
also rely on, inter alia, the following AJE 15 entries in a
document entitled “Burien Nissan, Inc. Adjusting Journal Entries
for the period ended December 31, 1995":
Account # Account Name/Description Debits Credits
3440 Note Payable-Ken Stanford 178,000
3910 Retained Earnings 178,000
To record note payable on
capital stock redeemed
Petitioners rely on the foregoing AJE 15 entries to show that
Burien Nissan redeemed Mr. Stanford’s stock in 1995.23 We are
not persuaded by the AJE 15 entries that Burien Nissan redeemed
Mr. Stanford’s stock in 1995, or at any other time. We have
found that Mr. Whitehead purchased all of Mr. Stanford’s Burien
Nissan stock on September 13, 1991, pursuant to the September 13,
22By way of illustration, each purported assignment that
appeared on the back side of each of the two copies of stock
certificates 4 and 6 contained (1) no signature in the space
provided for a witness to sign and (2) a date that we found to be
inconsistent with credible evidence in the record.
23Petitioners do not contend that Burien Nissan redeemed any
stock from Mr. Whitehead in 1995.
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