- 8 - Total from Total from nonoperating sources other sources 1990 $89,572 $3,000 1991 351,529 5,000 1992 26,293 250,000 1993 19,443 127,220 1994 304 22,312 Totals 487,141 407,532 1 FabuGlass did not report this item on its 1991 tax return. However, the parties stipulated to the contract which shows that FabuGlass received $5,000 in 1991 from a real estate sale. 2 The parties stipulated that FabuGlass received rent receipts of $14,779 in 1992. Sawyer prepared FabuGlass’ tax return for 1995. Petitioner gave Sawyer a summary of income, expenses, and various transactions (e.g., sales of stock and real property) to use in preparing the 1995 return. FabuGlass reported that it was an investment company. FabuGlass reported the following on its 1995 return: Assets and Liabilities Beginning Item of year End of year Cash -- $396 Inventories $166,353 166,353 Depreciable, 3,075 3,075 depletable, and intangible assets Total assets 169,428 169,824 Loans from stockholders 2,026,017 2,431,761 Capital stock 430,258 25,000 Retained earnings (2,286,847) (2,286,937) Total liabilities and 169,428 169,824 stockholders’ equityPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011