- 16 -
the stock covered by the sales agreements. In consideration for
the transfer of stock to them by Birnie, Gordon Davenport and
Patricia Vestal executed installment notes, dated July 2, 1980,
in the amounts of $449,175.50 and $448,353.50, respectively.6
Patricia Vestal and Gordon Davenport each made downpayments in
the amount of $1,000 to Birnie with respect to the transfer to
them of Hondo stock and other stock, pursuant to the sales
agreements and notes. Patricia Vestal and Gordon Davenport made
interest payments due from them to Birnie under the terms of the
sales agreement and installment notes until approximately March
of 1982. On March 5, 1982, Birnie forgave the debts of Patricia
Vestal and Gordon Davenport owed to her under the installment
notes. On March 31, 1983, Birnie filed a Federal gift tax return
for 1982 reflecting the forgiveness of the installment notes.
On July 7, 1980, Birnie executed a document titled Deed of
Gift, memorializing her gift of 537 shares of Hondo stock to her
nephew Charles Botefuhr. The deed of gift was made part of the
public record by filing it in Tulsa County, Oklahoma. After the
date of Elizabeth's death, but prior to July 1980, dividends paid
with respect to Birnie's 1,610 shares of Hondo stock were paid
out of Elizabeth's estate to Birnie. The payment of dividends
with respect to Birnie's 1,610 shares of Hondo stock was not
considered to be a distribution of property of Elizabeth's
6 This represents a purchase price of $804 per share for
the Hondo stock.
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011