-6-
Taxable Income
(after compensation
deduction but before
Fiscal Total Gross Gross NOL and Dividends
Year Assets Sales Profit special deductions) Paid
1979 $10,736,361 $7,293,533 $51,170 ($2,219,417) N/A
1981 13,509,999 6,728,333 (773,038) (3,555,130) N/A
1982 7,314,042 43,924,265 7,425,068 5,370,502 N/A
1983 5,988,429 1,629,951 631,942 224,775 N/A
1984 4,881,551 85,160 (261,106) 517,618 N/A
1985 1,944,932 N/A N/A (177,704) N/A
1986 3,424,362 N/A N/A (141,442) N/A
1987 2,964,861 5,740,283 1,592,523 3,119,831 N/A
Petitioner's 1987 taxable income before the compensation deduction
was $4,922,631.
Dividends
Petitioner paid RLLH a Can$743,828 dividend in 1983, and a
Can$878,787 dividend in January 1985 out of petitioner's capital
account. Under Canadian tax law at the time, when a dividend was
paid out of a capital account, the distribution was not taxable
because it represented the nontaxable portion of capital gain.
Shareholder's Equity
Petitioner reported shareholder's equity on its audited
financial statements as follows:
Fiscal Year Shareholder's Equity
1986 $969,242
1987 1,786,314
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011