Investment Research Associates - Page 27

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          income and claimed a deduction of $35,000 for commission                    
          expenses.  Cedilla Co.'s 1983 adjusting journal entry indicates             
          that the $35,000 due to Schott was paid by offsetting amounts               
          owed by Schott to Cedilla Co.                                               
               IRA's consolidated return for 1983 reported a consolidated             
          net loss of $425,538, net income of $140,065 for Cedilla                    
          Investment Co., net income of $149,128 for Zeus, net income of              
          $139,783 for KWJ Corp., a net loss of $21,567 from Brickell, and            
          a net loss of $18,356 from IRA Florida Apts. and reflects the               
          following income and end-of-year balance sheets with respect to             
          IRA (unconsolidated):                                                       
                                        IRA                                           
               Income                                                                 
               Dividends                $343,080                                      
               Interest                 402,022                                       
               Gross rents              2,581,652                                     
               Capital gain             314,855                                       
               Partnerships             (689,461)                                     
               Commissions                                                            
               General fees             244,732                                       
               Consulting fees           26,000                                       
               Total                    3,222,880                                     
               Deductions                                                             
               Bad debts                22,075                                        
               Interest                 1,834,892                                     
               Depreciation             1,636,137                                     
               Commissions/fees                                                       
               Other                     88,311                                       
               Total                    3,581,415                                     
               Net Income               (358,535)                                     
               NOL                      (1,453,212)                                   
               Special deductions       (336,303)                                     
               Taxable Income           (2,148,050)                                   

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