Tribune Company, As Agent of and Successor By Merger to the Former the Times Mirror Company, Itself and its Consolidated Subsidiaries - Page 124

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          investments” as of the end of 1998:  (1) $61,616,016 of “OTHER              
          INVESTMENTS” held by MB Parent; (2) $867,197,048 of “OTHER                  
          INVESTMENTS” held by the LLC; and (3) $528,438,140 of “Marketable           
          securities” held by the LLC.  MB Parent also reported the value             
          of its capital stock on this Schedule L.  According to the                  
          Schedule L, $68,750,000 of preferred stock comprised the total              
          value of MB Parent’s capital stock as of the end of 1998.                   
          MB Parent did not report a value for its common stock on this               
          Schedule L.  In addition, MB Parent reported its additional paid-           
          in capital on this Schedule L.  According to the Schedule L, the            
          value of MB Parent’s additional paid-in capital was                         
          $1.375 billion as of the end of 1998.                                       
               The Internal Revenue Service (IRS) began its audit of Times            
          Mirror’s Form 1120 for 1998 sometime during February 2000.  On              
          March 15, 2000, Gastler signed the cover sheet to a packet of               
          documents that Times Mirror provided to the IRS as part of this             
          audit.  Included in this packet of documents was Form 8275,                 
          Disclosure Statement, for the period January 1, 1997, through               
          December 31, 1998, for Times Mirror and its subsidiaries.                   
          Referenced in an attachment to the Form 8275 were “Statements               
          previously submitted on February 18, 2000, indicating                       
          reorganization of Matthew Bender and Company, per IRC                       
          Section 368.”  These statements included the following:                     







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