Robert C. Coborn, Sr. - Page 7

                                        - 7 -                                         

               By 1992, EPL had changed its name to Micro Bio Logics, Inc.            
          (MBL), and in 1992 MBL conducted an unsuccessful public offering            
          of its common stock and warrants.                                           
               On EPL’s original and amended 1988 corporate Federal income            
          tax returns, $1.6 million in forgiveness of indebtedness income             
          was reported relating to the $1.6 million in purported debt to              
          petitioner that petitioner in 1988 allegedly forgave.                       
               Based on EPL's 1988 corporate Federal income tax return, but           
          for the $1.6 million in forgiveness of indebtedness income that             
          was reported, EPL would have reported on its 1988 corporate                 
          Federal income tax return a net operating loss for 1988 in the              
          amount of $717,119.                                                         
               As a result of its 1988 operations and its net operating               
          loss carryforward from prior years, the $1.6 million in                     
          forgiveness of indebtedness income that EPL reported for 1988 did           
          not result in any reported tax liability for EPL.                           
               Further, in January of 1988, petitioner sold his stock in              
          Coborn's, Inc. (Coborn), another closely held corporation in                
          which petitioner had an interest, and petitioner realized from              
          this sale a long-term capital gain of $2,044,988.  In 1988, 1989,           
          1990, and 1991, petitioner recognized and reported $855,089,                
          $451,494, $30,786 and $34,730, respectively, of this capital                
          gain.                                                                       







Page:  Previous  1  2  3  4  5  6  7  8  9  Next

Last modified: May 25, 2011