-2- LB&M Associates, Inc. (LB&M), an S corporation, had its principal place of business in Lawton, Oklahoma, at the time the respective petitions in these cases were filed. The record in these cases establishes and/or the parties do not dispute the following. During 1990, except for Rudy J. Alvarado (Mr. Alvarado) who became a shareholder of LB&M during that year when he purchased 10 percent of its stock, all of the shareholders of LB&M (selling LB&M shareholders), including James E. Ferguson, John P. Purcell, Jr., Bloomer Don Sullivan, Steve Doerfel, Anthony Pokorny, and Howard Rubin (participating shareholders), sold LB&M a portion of their LB&M stock (1990 stock sale) in return for which LB&M issued a promissory note to each such shareholder (promissory note). As a result of Mr. Alvarado's purchase and the selling LB&M shareholders' sales of LB&M stock, Mr. Alvarado became a 51- percent owner of the stock of LB&M. LB&M and each of the selling LB&M shareholders treated the promissory note issued to each such shareholder in the 1990 stock sale as reflecting an indebtedness of LB&M to that shareholder (alleged LB&M liability). Each of the selling LB&M shareholders treated the alleged LB&M liability to each such shareholder as an increase in such shareholder's (1) basis in the indebtedness of LB&M to such shareholder and (2) combined basis (basis in LB&M) in (a) such indebtedness and (b) the LB&M stock held by such shareholder.Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011