George R. and Barbara H. Burrus - Page 27

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          because these records document births, but not sales,12 deaths or           
          other dispositions.  Nonetheless, petitioners’ herd inventory               
          records do show, and the parties agree, that petitioners’ cattle            
          produced the following purebred Hereford offspring during the               
          years in issue:                                                             
                         Year      Heifers   Bulls     Total                          
                         1990      13        6         19                             
                         1991      10        7         17                             
                         1992      15        15        30                             
                         1993      17        20        37                             
                         1994      27        24        51                             
                         1995      30        23        53                             

          Thus, the number of offspring produced by petitioners’ herd                 
          nearly doubled in the first 4 years of operation and nearly                 


               11(...continued)                                                       
          information that was not offered into evidence.  Our review of              
          those figures indicates that they are either incomplete or                  
          unreliable.                                                                 
               Petitioners’ expert provided figures only for 1990 through             
          1992.  Respondent’s expert covered 1990 through 1992, and 1994,             
          but not 1993 or 1995.  Respondent’s expert’s figure for                     
          productive cows in 1994 is highly suspect, however; he puts it at           
          49, based on records made available to him, whereas the parties             
          have agreed that births registered in 1994 totaled 51.  The                 
          registration of 51 newborn calves in 1994 indicates that there              
          were almost certainly more than 49 productive cows in that year,            
          as it is undisputed that the “drop” rate (i.e., calving rate) for           
          such cows was between 80 and 90 percent.  We therefore conclude             
          that respondent’s expert’s herd figures are unreliable.                     

               12 The financial ledgers maintained by Mrs. Burrus for Maple           
          Row record the proceeds from cattle sales but generally do not              
          record the number or type of cattle sold.                                   




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