- 119 - Capital stock Preferred -- -- -- -- Common 100 100 100 100 Capital surplus Retained earn. (1,140,391) (1,536,819) (1,061,295) (1,490,783) 1988-89 In December 1988, IRA acquired 850 shares (85 percent) of Decisions Holding Corp. in a section 351 exchange for all of its shares of Cedilla Invest. and Zeus, plus $60,000.25 Zeus continued to hold an $807,028 receivable from Holding Co. plus $64,000 of receivables (exchanged during 1988 for a $64,000 receivable from HELO). No payments were made by Holding Co. or the others on the receivables, and no efforts were ever made to collect on the receivables. 25 On IRA's 1988 consolidated return, IRA reported that it contributed $60,000 to Decisions Holding Corp. in the sec. 351 transaction in exchange for 85 percent of the stock of Decisions Holding Corp. The return, however, also reported the transfers of IRA's stock in Cedilla Invest. and Zeus to Decisions Holding Corp. See infra Issue 23.Page: Previous 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 Next
Last modified: May 25, 2011