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TELCOR
Year Retained Deficit Shareholder's Equity
1987 ($598,622) ($137,551)
1988 (1,644,738) (1,183,667)
Petitioner was aware that repayment of the advances depended on
the subsidiaries' becoming profitable. During 1986 through 1988,
BEI made payments on petitioner's behalf; for example, BEI made
loan payments on the loans that petitioner originated to provide
funding to BEI and TELCOR. However, BEI and TELCOR did not make
regular repayments of the advances. On their original and
amended 1987 tax return, petitioners reported interest income
from BEI in the amount of $338,264.
During 1986 through 1988, petitioner also held ownership
interests in a number of other business enterprises, including,
among others: Muskogee Mall Ltd.; The Gary Cos.; Magnolia Capri
Associates Ltd.; Mediaplex, Inc.; Soneric, Inc.; Darbe
Development Co.; Pier West Partnership; Ice House Center;
Univest, Inc.; Belvedere Enterprises, Inc.; Fountainhead Resort
Hotel, Inc.; Shrimp, Oyster & Beer Haus, Inc.; Urban Enterprises,
Inc.; BRC Oil & Gas; Red Apple Enterprises, Ltd.; East Main
Ventures, Inc.; Creative Culinary Systems, Inc.; Original City
Associates, Ltd.; and Architectural Antiques, Inc. In general,
these businesses were organized as partnerships or S
corporations.
Petitioner also advanced money to his other businesses.
Although petitioner's other business interests were separate from
BEI, financing and operation of these businesses were discussed
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