Larry D. Johnson - Page 15




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          notes created, but that interest income was imputed by the CPAs             
          that prepared the returns on these due to/due from accounts.”               
               Respondent counters petitioner’s argument by noting that the           
          $286,737.27 payment or transfer came from JCC and not the Johnson           
          Corp., the subsidiary of JCC to which petitioner had advanced               
          funds.  JCC, however, was merely a holding company, and the                 
          Johnson Corp. and the other consolidated subsidiaries of JCC were           
          the operating companies through which the corporate business was            
          transacted.  Significantly, the asserted transferee liability is            
          for the consolidated JCC group, another factor that militates               
          against respondent’s argument.                                              
               Finally, it appears that the amount of interest income                 
          reported by petitioner quantitatively supports a $286,737.27 debt           
          due to petitioner.  If, for example, the $25,924 of interest                
          income represented an interest rate of 10 percent, the amount due           
          to petitioner would approximate $286,737.27.                                
               On this record, petitioner has shown that there was a debt             
          due him from the JCC corporation(s) at the time of the transfer.            
          With that finding, we next consider whether the satisfaction of             
          that debt due petitioner was “adequate consideration.”                      
               Under Texas law, “value” is given for a transfer if, in                
          exchange for the transfer, property is transferred or an                    
          antecedent debt is satisfied.  Tex. Bus. & Com. Code Ann. sec.              
          24.006(a)(Vernon 1987).  Respondent argues that, even if JCC’s              
          payment satisfied an antecedent debt in an amount that was                  




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