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2. Ownership
Green Light is a closely held corporation. Of the 460
outstanding shares of stock in Green Light, 184 shares were
included in decedent’s gross estate under section 2044.
Decedent’s children owned the remaining shares of Green Light
stock when she died.
Green Light has never paid dividends.
3. Products and Operations
Green Light formulates and markets (but does not
manufacture) insecticides, weed killers, fungicides, plant foods,
and other products for home and garden use. Green Light sells
its products to distributors, who sell them to retailers, such as
Walmart and grocery and hardware stores. Green Light’s primary
market in 1993 was the home and garden market. It did not sell
to farms, ranches, or golf courses. Green Light’s sales volumes
vary greatly according to weather conditions and the planting
season. Its products are manufactured primarily in the fourth
quarter of the calendar year, and it ships most of its products
in December and January. Green Light bills its customers 90 days
after shipment and receives most of its revenue in May and June.
In 1993, Green Light sold its products primarily in Texas,
Oklahoma, Louisiana, New Mexico, Colorado, and Arizona. Its top
five customers accounted for about 71 percent of its sales in its
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Last modified: May 25, 2011