- 20 -
Rents:
3341 Lucile -- 12,900
3 Arroyo -- 8,550
189 Ivy -- 3,500
Total gross rents 24,950 24,950
Royalties:
Occidental -- 785
Permain -- 124
Texaco -- 355
Phillips -- 59
Exxon -- 5
Walter L. Johnson -- 63
NPI -- 165,481
Total royalties 166,872 166,872
Other income (NPI) 100,000 100,000
Evelyn C. Hermsmeir 137,341 137,342
partnership
1120-S return of NPI:
ERG Hercules payment 483,098 --
Gross rents 119,508 79,712
Total 602,606 79,712
Baden Spiel Haus -- 625
partnership
Total 1,137,646 615,378
The parties calculated the percentage of omitted gross income in
1989 as follows:
The Bensons’ Respondent’s
calculation calculation
Omitted gross income $116,679 $444,947
Reported gross income $1,137,646 $615,377
Percent understated 10.26 72
1. Omitted Gross Income
The parties agree that the Bensons omitted gross income of
$116,679, which consists of: (1) Constructive dividends of
$96,749 from ERG’s payment of legal expenses (Check ref:
Carroll); (2) constructive dividends of $10,624 from automobile
expenses paid by ERG; (3) constructive dividends of $2,404 from
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