- 4 -
Ownership of Burien Nissan Stock
As of May 24, 1990, Burien Nissan had 120,000 shares of
common stock (Burien Nissan stock) issued and outstanding. As of
that date, Donald Johnston (Mr. Johnston) and Jacque Johnston
(Jacque Johnston) owned 96,000 shares of that stock (the Johnston
shares),3 and Gary McLaughlin (Mr. McLaughlin) owned 24,000
shares of that stock (the McLaughlin shares).
On May 25, 1990, Mr. Johnston, Jacque Johnston, and Mr.
McLaughlin entered into a stock purchase agreement (May 25, 1990
stock purchase agreement) with Mr. Stanford, Mr. Whitehead,
Patrick Watson (Mr. Watson), Gerald Buchner (Mr. Buchner), and
Burien Nissan. Mr. McLaughlin, as executive manager of Burien
Nissan,4 signed that agreement on its behalf.
Pursuant to the May 25, 1990 stock purchase agreement, Mr.
Johnston and Jacque Johnston agreed to sell 34,800 of the
Johnston shares to Mr. Stanford, Mr. Whitehead, Mr. Watson, and
Mr. Buchner (the buyers) for $121,326.53, Mr. McLaughlin agreed
3The parties stipulated that Mr. Johnston owned 96,000
shares of Burien Nissan stock as of May 24, 1990. That stipula-
tion is clearly contrary to the facts that we have found are
established by the record, and we shall disregard it. See Cal-
Maine Foods, Inc. v. Commissioner, 93 T.C. 181, 195 (1989). The
record establishes, and we have found, that both Mr. Johnston and
Jacque Johnston owned 96,000 shares of Burien Nissan stock as of
May 24, 1990.
4The record does not disclose the duties and the responsi-
bilities of the executive manager of Burien Nissan at all rele-
vant times.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011