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Liabilities
Notes payable 0
Accounts payable 10,905
Accrued expenses & other 0
Total current liabilities 10,905
Long term debt 0
Deferred gain - sale of 55.91 acres 2,220,144
Other liabilities - deferred taxes 0
Total Liabilities 2,231,049
Shareholders' Equity
Common stock 9,040
Paid-in or capital surplus 0
Treasury stock 0
Retained earnings 2,804,274
Total shareholders' equity 2,813,314
Total Liabilities & Equity 5,044,363
Common shares outstanding 9,040
Book value per common share 311.21
When decedent died on August 30, 1989, Beth W. Corp. had
unrealized appreciation in marketable securities of $165,191.
Beth W. Corp.'s balance sheet showed the same assets and
liabilities when decedent died as it reported on its corporate
income tax return for the year ending July 31, 1989. The parties
agree that this balance sheet is correct except that they
disagree about whether decedent owed $1,724,198 to Beth W. Corp.
and whether deferred gain on a mortgage note receivable (built-in
capital gain) was a liability.
2. Transfers from Beth W. Corp. to Decedent
Beth W. Corp. paid a substantial amount of money to and on
behalf of decedent. Beth W. Corp. recorded the transfers to
decedent as loans in its books and records. Beth W. Corp.'s
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Last modified: May 25, 2011