Malcolm I. Lewin and Trina Lewin - Page 31

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          When asked whether Canno had performed any type of comparables              
          analysis, Becker replied:  “I don’t know what Mr. Canno did.”               
               Becker visited the PI plant in Hyannis, toured the facility,           
          viewed a recycler in operation, and saw products that were                  
          produced from recycled plastic.  Becker claims that PI personnel            
          told him that the recycler was the only machine of its type.  In            
          fact, the recycler was not unique; instead, as we have found in             
          many cases involving substantially similar machines, several                
          comparable machines were available in 1981 and 1982 ranging in              
          price from $20,000 to $200,000.  See, e.g., Provizer v.                     
          Commissioner, T.C. Memo. 1992-177.                                          
               Becker was also told that PI had put an enormous amount of             
          research and development (i.e., 10 to 12 years’ worth) into the             
          creation and production of the recyclers.  When he asked to see             
          the cost records for some kind of independent verification,                 
          however, his request was denied.  Becker was informed that such             
          information was proprietary and secret, and that he would just              
          have to take PI’s representations as true.  Becker decided to               
          accept PI’s representations after speaking with Miller (corporate           
          counsel to PI), Canno (who had never been to PI’s plant or seen a           
          recycler), and a surrogate judge from Rhode Island who did                  
          business in the Boston-Cape Cod area (and who had no experience             
          in engineering or plastics materials).  Becker testified that he            
          was allowed to see PI’s internal accounting controls regarding              

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