- 5 - petitioner liquidated most of its assets so that it would have the funds to pay Mr. Ashare the $1,750,000. Petitioner reported a $1,857,933 taxable loss for 1993, which, on February 14, 1994, it carried back to 1990 to receive a $581,812 refund of taxes paid for 1990. Petitioner's reported loss resulted in a reported deficit of $89,855 in retained earnings on December 31, 1993, which translates into a deficit of $1,463,768 in retained earnings exclusive of the tax refunds of $733,006, $59,095, and $581,812 described infra and supra. Petitioner's reported balance sheet at the beginning and end of 1993 was as follows: 1/1/93 12/31/93 Assets: Cash $146,130 $35,197 Mortgage receivable 11,000 11,000 Loan receivable 5,000 -0- Prepaid expense 3,200 3,200 Refundable income tax 69,095 582,812 Investments--marketable securities 569,173 9,048 Depreciable property (net of depreciation) 197,164 187,113 Total assets 1,000,762 828,370 Liabilities: Payroll taxes withheld 2,871 469 Accrued pension contribution 40,002 -0- Loans from shareholders 8,800 916,756 Total liabilities 51,673 917,225 Shareholder's equity: Common stock 1,000 1,000 Retained earnings (deficit) 948,089 (89,855) Total shareholder's equity (deficit) 949,089 (88,855) Total liabilities & S/H's equity (deficit) 1,000,762 828,370Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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