K & M La Botica Pharmacy, Incorporated, et al. - Page 31

                                       - 31 -                                         
          Ahmed for purposes of determining Ahmed’s income and expenses and           
          Ahmed’s individual Federal income tax liabilities.                          
               The schedule below compares, for 1995 and 1996, the gross              
          income, the taxable income, and the tax liabilities of Ahmed and            
          of K & M as reported on the filed tax returns with the gross                
          income, the taxable income, and the tax liabilities of Ahmed and            
          of K & M as stipulated herein:8                                             

                          1995                1996                                    
                          Reported Stipulated  Reported Stipulated                    
          Ahmed’s                                                                     
          Gross Income     $  49,000 $  113,390 $   40,500 $   95,698                 
          Taxable Income    22,872     87,262     15,127     70,325                   
          Tax Liability     3,431     19,367      2,269     14,478                    
          K & M’s                                                                     
          Gross Income     1,705,359 1,768,971 1,401,793 1,492,929                    
          Taxable Income       7,361    112,875     60,148    202,839                 
          Tax Liability     1,104     27,271     10,037     62,357                    

               The schedule below compares, for 1997 and 1998, the                    
          aggregated gross income, taxable income, and tax liabilities of             
          Ahmed and of the nominee entities as reported on the filed or               
          submitted tax returns of Ahmed and of the nominee entities with             

               8  On this schedule for 1995 and 1996, and on the next                 
          schedule for 1997 and 1998, see infra p. 32, we have estimated              
          the Federal income tax liability of Ahmed and of K & M based on             
          the stipulated income and expense amounts.  The amounts indicated           
          on these two schedules for the estimated tax liabilities are not            
          binding on the parties, who will have the opportunity to submit             
          tax calculations pursuant to Rule 155.  The “reported” amounts              
          include the amounts reported on the tax returns filed with                  
          respondent and also amounts reported on the tax returns that were           
          submitted either before or during trial but which were neither              
          signed nor filed with respondent.                                           





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