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primary business of Dunn Equipment was the renting (to refinery
and petrochemical businesses) of heavy equipment such as cranes,
air compressors, backhoes, man lifts, sanders, and grinders
(collectively, “equipment”), as well as providing operators for
such equipment. Crane rentals accounted for more than 50 percent
of the revenues of Dunn Equipment. Although one of Dunn
Equipment’s locations rented smaller equipment, such rentals
accounted for less than 5 percent of the company’s revenues.
Dunn Equipment charged an hourly rate for both the equipment and
the labor. For fiscal years 1988 through 1991, the portion of
revenues attributable to labor, parts, and rentals of operated
equipment (i.e., equipment for which an operator was also
supplied) ranged from 26.3 to 32.7 percent. In addition to the
equipment, the tangible assets of Dunn Equipment included several
parcels of industrial real estate with a total appraised value of
$1,442,580 and a townhouse valued at $35,000.
The capital stock of Dunn Equipment consisted of 786,455
shares, of which decedent owned 492,610, or 62.96 percent, and
Mr. Dunn owned 243,770, or 31.12 percent. Decedent, Mr. Dunn,
and Peter Dunn were directors of Dunn Equipment. Mr. Dunn was
president of Dunn Equipment, and Peter Dunn was vice president.
Until her death, decedent served as secretary-treasurer of Dunn
Equipment. Mr. Dunn’s sole compensation from Dunn Equipment
during the period of fiscal year 1988 through fiscal year 1991
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Last modified: May 25, 2011