O. D. McKee and Estate of Anna Ruth McKee, Deceased, R. Ellsworth McKee and Jack C. McKee, Co-Executors - Page 12

                                       - 12 -                                         
          $4,417,617 (1991 Company Note).  The payment schedule and                   
          interest terms of the 1991 Company Note were identical to those             
          of the Provident Loan.  Accordingly, the interest income received           
          by decedent's estate from the 1991 Company Note exactly offset              
          the interest expense that decedent's estate owed on the Provident           
          Loan.                                                                       
               Decedent's estate reported on Form 1041, U.S. Fiduciary                
          Income Tax Return, a capital gain of $2,124,317.90 from the                 
          redemption of the shares of class B stock on December 30, 1991,             
          of which $765,458.18 was recognized in the fiscal year ending May           
          31, 1992.  The balance of this capital gain was recognized in the           
          estate's next fiscal year Form 1041.  The total capital gains tax           
          paid was $594,809.                                                          
               On January 15, 1993, the Company prepaid the 1991 Company              
          Note to decedent's estate, thus enabling decedent's estate to               
          repay the Provident Loan.  Decedent's estate paid a total of                
          $1,053,813.96 in interest on the Provident Loan.  Decedent's                
          estate was also assessed a prepayment penalty of $22,088 under              
          the terms of the Provident Loan.                                            
               On June 15, 1993, decedent's estate borrowed $321,000 from             
          the Company (Third Company Loan).  No principal payments have               
          been made on this loan.  Interest is payable annually on the                
          Third Company Loan, and the first interest payment of $17,109.30            
          was made on June 15, 1994.                                                  






Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  Next

Last modified: May 25, 2011