Investment Research Associates - Page 26

                                       - 114 -                                        
          Capital stock                                                               
          Preferred           1,000     --             1,000      --                  
          Common                   100    1,000        100     1,000                  
          Capital surplus          --   18,024               –-       18,024          
          Retained earnings   728,679   25,768         205,783    35,706              
                                                                                     
          1983                                                                        

















               IRA reported that it liquidated Brickell, IRA Florida Apts.,           
          and KWJ Corp. under section 332 during 1983.  In December 1983,             
          IRA acquired 1,000 shares (100 percent) of the common stock of              
          Carlco, TMT, and BWK, Inc.                                                  
               IRA's 1983 consolidated return and adjusting journal entries           
          show that Schott's shares of IRA preferred stock were redeemed in           
          1983 in exchange for IRA's 1,000 shares of Cedilla Co. common               
          stock.  IRA reported that its shares of Cedilla Co. were redeemed           
          for $1,000 in April 1983 and reported a long-term capital loss of           
          $18,024 on the sale.  IRA's consolidated income also included a             
          $35,000 net operating loss from Cedilla Co.  Cedilla Co. had no             

Page:  Previous  104  105  106  107  108  109  110  111  112  113  114  115  116  117  118  119  120  121  122  123  Next