- 6 -
1993 calendar year shows a recognized gross profit of $6,405,360.
The 1993 combined operating loss reflected on the combined income
statement for AJCS and the four affiliates is $37,706. On the
combined financial statements and independent auditors report,
AJCS’s and the four affiliates’ “combined statement of earnings”
is also listed as a loss of $37,706.
AJCS, for Federal tax purposes, reported a $236,300 loss for
its 1993 tax year. The four affiliates reported Federal tax
losses for the tax year ending 1993 as follows:
Affiliate Reported Loss
West ($72,041)
Georgia (5,507)
Central (8,873)
East -0-
The combined Federal tax loss reported for the 1993 calendar
year by AJCS and the four affiliates is $322,721.7 AJCS and the
four affiliates reported tax losses in their subsequent reporting
periods as follows:
Company TYE Reported Loss
AJCS Dec. 31, 1994 ($577)
West Sept. 30, 1994 (300,451)
Georgia Sept. 30, 1994 (222,782)
Central June 30, 1994 (14,627)
East Mar. 31, 1994 (354,826)
The Schedules L, Balance Sheet, attached to AJCS’s 1993 and
1994 tax returns do not reflect the same 1993 ending figures as
the amounts reflected for the 1994 beginning figures with respect
7 AJCS and the four affiliates did not file a consolidated
return for the tax periods under consideration.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011