-190-
$4,404,569, respectively. Exhs. 9015, 61-66. During 1984
through 1989, Carlco’s assets were invested almost entirely in
municipal bonds. Id.
c. Kanter’s Use and Enjoyment of BWK’s Assets
(i). Salaries and Officer Compensation Paid to Kanter
and His Son
During 1984 through 1989, Kanter and his son, Joshua Kanter,
received salaries from BWK in the following amounts:
Year Burton Kanter Joshua Kanter
1984 $40,000 --
1985 40,000 $9,000
1986 40,000 13,000
1987 30,000 4,000
1988 30,000 --
1989 30,000 --
Total 210,000 26,000
Exhs. 115-119 (BWK ledgers); Exhs. 106-111 (BWK returns). Kanter
testified, however, that he did not have time to manage BWK.
Kanter, Transcr. at 3695.
(ii). Loans
On April 11, 1985, BWK lent $400,000 to Kanter. Exh. 115,
at 3. By the end of 1987, the $400,000 loan had not been repaid.
Exh. 117. In 1988 and 1989, the $400,000 loan was reduced by
approximately $30,000 each year by adjusting journal entries
which treated the reduction of the loan as salary to Kanter.
Exh. 9013, at 1, 11 (AJE 2); Exh. 5504. BWK’s ledgers and
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