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On December 31, 1985, Whiteco also purchased the real
property where the business office of SOAI was located, in Gary,
Indiana, for $300,000, in a separate agreement with the Cidulka
family partnership which owned the building. The gross rent
multiplier for this sale based on the gross rentals for the
calendar year 1985 is 3.11.1 If gross rentals are reduced by
estimated accounts receivables of $500,000 the multiplier is
2.89.
Whiteco converted many of the SOAI poster billboards to
permanent paint billboards. Whiteco replaced many of the
billboards at these locations from 4 to 12 years after January
25, 1982.
The replacement cost of all 578 billboards of SOAI involved
in the sale by SOAI to Whiteco would have been approximately $6
to $6 1/2 million, without including lease-up costs.
The book value of the assets sold in January 1985, as
reflected on the Schedule M of the SOAI Form 1120 for the year
ended December 31, 1985, totaled $851,176, summarized as follows:
Inventories $89,440
Fixed assets 673,119
Land 88,617
Total 851,176
1 The gross rent multiplier or gross income multiplier is
the amount by which gross rentals from the immediately preceding
year must be multiplied to arrive at the sale price for the
business assets purchased.
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Last modified: May 25, 2011