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(the $1,024,000 TroMetro note).63 On December 10, 1998, TroMetro
paid $205,191 principal and $82,600 interest on the $1,024,000
TroMetro note. No other cash payments were made on the
$1,024,000 Trometro note.
On its partnership tax return for the period December 16 to
31, 1997, Corona reported a $78,768,955 long-term capital loss on
the sale of the $79 million receivable. In computing this loss,
Corona reported a $1,144,000 sale price and $79,912,955 basis for
the $79 million receivable. The loss flowed through to Imperial
in the amount of $74,671,378 and to SMP in the amount of
$4,097,577. SMP’s $4,097,577 loss then flowed through to
Somerville S Trust and finally through to Mr. Ackerman. On
Schedules K-1 attached to its return, Corona reported the sale of
the $79 million receivable as a $74,671,378 decrease in
Imperial’s capital account and a $4,097,577 decrease in SMP’s
capital account.
6. Imperial’s Capital Contribution
On January 15, 1998, Corona’s members executed a second
amendment to the amended and restated Corona LLC agreement,
providing that “At the end of any year in which there are
63 At some point, Mr. van Merkensteijn, on behalf of
TroMetro, executed a second promissory note also dated Dec. 29,
1997, in the amount of $1.180 million (the $1.180 million
TroMetro note). Mr. van Merkensteijn testified that the first
note was corrected to reflect a different amount. The $1,024,000
TroMetro note in the record has the handwritten notation
“Cancelled” on its first and last pages.
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