- 19 -
1 Respondent eliminated the unamortized organization costs;
thus, respondent’s figures for total assets and net proceeds are
$39,388 less than indicated above. Without passing on the
correctness of this omission, we have included these costs in order
to make respondent’s and petitioner’s figures more easily
comparable.
Next, respondent contends that if all of IHCL’s assets had
been sold at the end of 1991, the proceeds therefrom would be
$10,449,135. This amount is computed as follows:
Assets
Cash $9,098,388
Investment in Landmark (3,967,304)
Investment in Gateway 2,660,677
Note receivable from THEI 2,619,833
Unamortized organization costs 39,388
Total assets 10,450,982
Liabilities
Accounts payable (1,847)
Total liabilities (1,847)
Net proceeds 10,449,135
Respondent asserts that, at the end of the first year (1990)
all the liquidation proceeds would have gone to Dondi, which was
the only partner to have a positive capital account. Further,
respondent claims the amount available for distribution upon
liquidation is $5,960,002 less than the positive capital account
balance of $14,879,392 for Dondi.
At the end of the next year (1991, the year involved herein),
the net book value of IHCL’s assets was $10,449,135. Respondent
contends that under the IHCL Restated Agreement, all of the
increase in book value would have been distributed to Mr.
Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NextLast modified: May 25, 2011