- 77 -
Total
Compensation Portion Attributable To:
Year Accrued SLPC TBPC TPTC
1987 $75,000 $15,000 $30,000 $30,000
1988 75,000 15,000 30,000 30,000
1989 75,000 15,000 30,000 30,000
1990 60,000 –- 30,000 30,000
Total 285,000 45,000 120,000 120,000
As of December 31, 1991, PK Ventures’ books indicated that,
during 1991, PK Ventures had accrued $90,000 of “Salary” and an
additional $37,469 of “Compensation & Benefits” with respect to
Rose, that TBPC had accrued $30,000 of “Compensation & Benefits”
with respect to Rose, and that TPTC had accrued $30,000 of “Mgt
Salaries” with respect to Rose.
During March 1992, Rose made journal entries to PK Ventures’
general ledger to reflect “deferred compensation” payable to him
for 1986 through 1991 in the following amounts:
Year Amount
1986 $500,000
1987 600,000
1988 720,000
1989 840,000
1990 900,000
1991 900,000
According to this “Deferred Compensation” account, PK Ventures
owed Rose $4,460,000 as of March 30, 1992. Prior to Rose’s
making these journal entries, there had never been a written
agreement between Rose and PK Ventures as to deferred
compensation, and Rose had never discussed deferred compensation
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