- 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’ equity
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Last modified: May 25, 2011