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for us to base our decision. Therefore, we conclude that the
burden of proof does not shift to respondent on this issue.29
III. Portion of Monthly Services Fees Allocable to Medical Care
Under the Percentage Method
The parties’ positions regarding the application of the
percentage method are based primarily on the ad hoc committee’s
report and the portion of Mr. Powell’s report discussing this
method. Respondent argues that Mr. Powell’s application of the
method and the resulting conclusion should be followed if the
percentage method is applied. Petitioners rely primarily on the
ad hoc committee’s findings with certain adjustments contained in
a supplemental calculation. After discussing this issue with the
parties at trial and examining their briefs, we interpret
petitioners’ position to be that both the ad hoc committee’s
findings and the findings resulting from petitioners’ subsequent
adjustments are appropriate methods of determining the
appropriate allocation percentage. Petitioners ultimately argue
that, based on either calculation, the appropriate allocation is
approximately 41 percent.
A. Petitioners’ Calculations
Petitioners generally agree with the approach and financial
figures used by the ad hoc committee, of which Mr. Baker was a
29Petitioners do not argue that respondent raised a new
matter with respect to the disallowance of the claimed deductions
for Mr. Baker’s use of the pool, spa, and exercise facilities.
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