O. D. McKee and Estate of Anna Ruth McKee, Deceased, R. Ellsworth McKee and Jack C. McKee, Co-Executors - Page 11

                                       - 11 -                                         
          Assurance Co. in the amount of $5,522,000, with an interest rate            
          of 9.69 percent per annum (Provident Loan).  The executors                  
          pledged decedent's class B shares to secure the Provident Loan.             
               On October 3, 1990, respondent received the estate's timely            
          filed return.  Decedent's estate claimed a deduction of                     
          $289,079.77 for interest, accrued or paid though September 26,              
          1990, on the First Company Loan and the Provident Loan.  On                 
          October 3, 1991, respondent also received a Form 843, Claim for             
          Refund and Request for Abatement, in which decedent's estate                
          claimed a refund for overpayment of estate tax resulting from               
          administration expenses of $462,251.22, for interest expenses               
          accrued or paid on the Provident Loan from September 26, 1990,              
          though September 30, 1991.                                                  
               On January 15, 1991, decedent's estate received, in                    
          redemption of 24,100 class B shares, $1,590,600 in cash from the            
          Company, which was used to pay principal and interest due on the            
          Provident Loan on January 15, 1991, and income taxes arising out            
          of the redemption of the class B shares.                                    
               On September 16, 1991, decedent's estate borrowed $75,000              
          from the Company pursuant to a line of credit note (Second                  
          Company Loan).  Thereafter, decedent's estate repaid the Second             
          Company Loan together with accrued interest of $1,533.89.                   
               On December 30, 1991, the Company redeemed 69,994 shares of            
          class B stock from decedent's estate, paying approximately                  
          $762,000 in cash and delivering a note in the amount of                     




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