- 12 - entire $484,080 basis in their Burien Nissan shares against the proceeds that they reported on their second amended 1990 return. Burien Nissan Amended Income Tax Returns On March 4, 1998, Burien Nissan mailed Amended U.S. Corporate Income Tax Returns (Forms 1120X) for taxable years 1989, 1990, 1991, 1992, 1993, 1994, 1995, and 1996 to the Ogden Service Center. The Form 1120X for 1994 reflected a $74,468 increase in Burien Nissan’s reported loss for the year. The increased loss was due to the following reported adjustments: Johnston Reverse Total Accrue Family EmploymentTax Year AdditionalPartnership EmploymentAward Prior Adjustment Ransopher Interest Sec. 267 Award Amortization Expense/ Year Interest AdjustmentAdjustmentAdjustmentExpenses (income) 1989 -- $1,731 -- -- -- $1,731 1990 -- (65) -- -- -- (65) 1991 -- 9,045 $(1,438) -- -- 7,607 1992 -- 4,457 (2,497) -- -- 1,960 1993 -- 5,917 29,736 -- -- 35,653 1994 $10,000 -- 11,483 $9,783 $(3,684) 27,582 Total 10,000 21,085 37,284 9,783 (3,684) 74,468 Sale of Aurora Mitsubishi Assets Mr. Johnston owned 75 percent of the outstanding stock of Don Johnston, Inc. Mr. McLaughlin and Richard Huntoon owned 5 percent and 20 percent, respectively, of the outstanding stock of Don Johnston, Inc. Don Johnston, Inc., owned and operated a car dealership doing business as “Aurora Mitsubishi” from 1989 until the sale of the dealership. On October 28, 1994, Matthew B. West, Inc., and Don Johnston, Inc., entered into an agreement entitled “Agreement for Sale of Assets” (aurora asset sale agreement). Mr. Johnston signed the aurora asset sale agreement as president of Don Johnston, Inc.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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