Investment Research Associates - Page 505




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                    Assets                                                            
                    Cash                          $40,626                             
                    Accrued income                108,521                             
                    Total assets                  149,147                             
                    Liabilities                                                       
                    Mortgages, notes,                                                 
                    and bonds payable             19,400                              
                    Accrued expenses               14,663                             
                    Total liabilities             34,063                              
                    Net Worth                     115,084                             
                    Common Stock                  1,000                               
                    Retained earning                                                  
                    unappropriated                53,968                              
                    Previously taxed income       60,116                              
                    Total stockholder equity      115,084                             
               The commissions paid over by Hyatt Corp. attributable to               
          operations from 1978 through 1982 were as follows:                          
                    Operating Year      Payment Year        Payment                   
                         1978           1979                --                        
                         1979           1980           $171,027                       
                         1980           1981                128,671                   
                         1981           1982                246,717                   
                         1982           1983                245,843                   
               Except for the $171,027 payment received in 1980 from                  
          operations of the Hyatt hotel during 1979 that it reported on its           
          1979 return, IRA included the payments as income on the returns             
          for the years of payment.                                                   
               Hyatt Corp. was not informed about the sale of the KWJ Corp.           
          stock to IRA and, therefore, continued to send the payments to              
          Weaver, who then sent the check to IRA.  IRA then paid Weaver his           
          30 percent and deducted the payments as a commission expense.               
               A letter dated March 29, 1983, from Weaver to Kanter states:           






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Last modified: May 25, 2011