- 54 -
letters of credit were collateralized by certificates of deposit
that LTD had purchased with the client's funds. The gross
receipts and direct costs relating to LTD’s "Income from Letters
of Credit" for each taxable year are as follows:
TYE June 30 Gross Receipts Direct Costs
1987 1$24,152 - 0 -
1988 91,556 - 0 -
1989 53,047 - 0 -
1We have recategorized under "Income from Letters of Credit"
for taxable year ended June 30, 1987, the amount of $24,152 of
gross receipts, which was originally categorized under "Other
Income".
i. Foreign Exchange Investments
LTD derived income from its foreign exchange investments.
The gross receipts and direct costs relating to LTD’s "Income
Foreign Exchange Invest" are as follows:
TYE June 30 Gross Receipts Direct Costs
1987 $8,425 - 0 -
j. Treasury Bills
LTD earned commissions from third parties on the sale of
U.S. Treasury bills to LTD’s clients. For taxable year ended
June 30, 1989, LTD’s commissions were from Merrill Lynch. LTD’s
direct costs were the commissions that it paid to promoters. The
gross receipts and direct costs relating to LTD’s "Commissions -
T-bills" for each taxable year are as follows:
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