Estate of Melvin W. Ballantyne, Deceased, Jean S. Ballantyne, Independent Executrix, and Jean S. Ballantyne - Page 26

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          contributions to the partnership cannot be made given the state             
          of BBP’s records.  Thus, the evidence in the record is                      
          insufficient to determine the partners’ relative contributions to           
               The second factor to consider is the partners’ interests in            
          the economic profits and losses of the partnership.  Melvin and             
          Russell generally allowed each other to withdraw the profits from           
          the respective activity each brother primarily conducted.  Both             
          Russell and Mr. Feldmann testified that they believed that Melvin           
          withdrew more money from BBP over the years than Russell did.               
          Russell testified that he and Melvin had a great working                    
          relationship and that they agreed that they would report the                
          income and loss from BBP equally on both the partnership and                
          their individual income tax returns.  Russell testified that the            
          amount of income from each activity varied because sometimes the            
          price of grain was good and other times the price of oil was                
          good.  The amount of profits earned by each activity varied year            
          to year depending on various factors, including the market prices           
          for grain or oil.  For the taxable years 1980 through 1994, the             
          evidence in the record reflects that the oil and gas activity was           
          more profitable overall than the farming activity during this               
          period.  The profits and losses varied from year to year as                 
          between the two activities, and the evidence in the record is               
          insufficient from which to define the partners’ interests in the            

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Last modified: May 25, 2011