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face value of $680,000 and bearing interest at 9-3/4 percent.3
On the same day, Alice Berger transferred her interest in the
Woodbine Association Certificates of Debt to Gregg and Julia
Kunkowski in exchange for a $680,000 note signed by Gregg and
Julia Kunkowski as makers to Alice Berger as payee. The note
called for monthly payments of principal and interest of
$6,059.75 for a term of 25 years. During 1989, Alice Berger
received two payments, totaling $12,119.50, on the note.
The parties have stipulated that the 1989 income statement
of Woodbine accurately reflects its income, expenses, and net
income for the period January 1 through November 17, 1989
(including therein $491,432 of deposits with respect to Phases I,
II, and IIIA, and $217,124 allocated as cost of goods sold for
Phases II and IIIA), if all such deposits are found to be
properly includable in income for 1989. The Woodbine 1989 income
statement shows net income of $383,133, which the parties have
stipulated is the taxable income of Woodbine for the period
January 1-November 17, 1989, if such deposits are found to be
properly includable in income for 1989.
Fully reported on the Howard and Alice Berger 1988 joint
3Although the Certificates of Debt are not in evidence,
Special Resolution #2 attached to the minutes of the Nov. 17,
1989, meeting of the Board of Trustees of Woodbine Association
recites that the face amount of the Certificates of Debt was
$680,000, plus interest at 9-3/4 percent, "with interest payments
only made on a monthly basis in the amount of $5,525 per month.
The principal shall be due within 180 days of demand made by the
Holder of the Certificates".
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