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         real estate (a valid business purpose48), we cannot attribute the             
         purpose for the formation of Old Cedilla Co. to IRA.  Originally,             
         Keating owned the common stock of Old Cedilla Co., and Schott                 
         owned the preferred class A preferred stock.                                  
              In 1975, the same year Weaver agreed to sell KWJ Corp. to                
         Kanter, Keating's 1,000 shares of common stock of Old Cedilla Co.             
         were exchanged for 500 shares of class B preferred stock,49 and               
         Weisgal as trustee of the Bea Ritch trusts acquired 1,000 shares              
         of the common stock.  Schott continued to hold the class A                    
         preferred stock in Old Cedilla Co. to enable Old Cedilla Co. to               
         qualify for a corporate broker's license.                                     
              In 1978, Old Cedilla Co.'s name was changed to IRA.  When                
         Old Cedilla Co.'s name changed, IRA acquired 1,000 shares of Arba             
         and changed the name of Arba to Cedilla Co (New Cedilla Co.).                 
         IRA's end of year balance sheet indicates that IRA's 1,000 shares             
         of Cedilla Co. were the only shares outstanding.                              
              In 1983, IRA made a journal entry to show that IRA redeemed              
         Schott's 500 shares of IRA class B preferred stock in exchange                
         for IRA's 1,000 shares of its Cedilla Co. stock.                              
              Schott thought that, when Cedilla Co.'s name was changed to              
         IRA, she acquired another company and the name of that                        
          48                                                                           
               The Court, however, is not convinced that Cedilla Co. was               
          organized for any purpose other than to serve as a vehicle for               
          Kanter's various tax avoidance schemes.                                      
          49                                                                           
               Keating's preferred stock was redeemed in 1977.                         
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