ABC Beverage Corp., f.k.a. Beverage America, Inc. - Page 20

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          v. Burnet, 58 F.2d 530, 532 (D.C. Cir. 1932), affg. 18 B.T.A. 504           
          (1929).  A creditor who voluntarily relinquishes valuable                   
          collateral provided by a solvent debtor also may not deduct the             
          debt as worthless.  O’Bryan Bros. v. Commissioner, 127 F.2d 645,            
          646 (6th Cir. 1942), affg. 42 B.T.A. 18 (1940).                             
               Neither party was able to point us to a case directly on               
          point.  Respondent relies on a recent Court of Federal Claims               
          decision indicating that a taxpayer may not deduct a worthless              
          debt where the taxpayer’s actions, standing alone, have made the            
          debt uncollectible.  PepsiAmericas, Inc. v. United States, 52               
          Fed. Cl. 41 (2002).  Respondent argues that we should extend the            
          reasoning of PepsiAmericas to this case to hold that petitioner             
          may not deduct a portion of the Properties loan as a worthless              
          debt because Bottlers contributed to its worthlessness by failing           
          to pay Properties the full amount of rent.                                  
               In PepsiAmericas, the taxpayer made a loan to its ESOP,                
          terminated the ESOP, and tried to deduct the amount the ESOP owed           
          as a worthless debt.  Id.  The court held the taxpayer could not            
          deduct the amount lent to the ESOP as a worthless debt because              
          the taxpayer’s own conduct caused the worthlessness.  Id. at 48             
          (citing Roth Steel Tube Co. v. Commissioner, supra at 1181,                 

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