MEMORANDUM FINDINGS OF FACT AND OPINION
HALPERN, Judge:
These cases have been consolidated for trial, briefing, and opinion. By separate notices of deficiency, respondent had determined deficiencies in, additions to, and penalties with respect to the Federal income taxes of petitioners Valeri Markovski (Markovski) and American Valmar International, Ltd., Inc. (American Valmar) as follows:
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