Question
1. Graphical Presentation - Keystone GRAPHICALLY Part I. Assume the following facts: Keystone is defunct, has zero assets and has two liabilities remaining on its
1. Graphical Presentation - Keystone
GRAPHICALLY
Part I. Assume the following facts:
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Keystone is defunct, has zero assets and has two liabilities remaining on its balance sheet:
a. Unsecured pension liability = $5 million
b. Secured loan to an owner named Mr. Javlin = $10,000,000
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Assume that Keystone has two owners: Mr. Javlin (67%) and Mr. Linton (33%)
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Assume that during the period 20x2 through 20x8, companies owned by Mr. Javlin were paid
$32,000,000 by Keystone. Company names included: Sword Ridge, Sword River, Rock River, Rock
Rider, Cobra Coal, Rock Walker, Arctic Resources, Cinnamon Resources).
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Assume that during the period 20x2 through 20x8, companies owned by Mr. Linton were paid
$16,000,000 by Keystone. Company names included: Atlantic Supply, Keystone Land & Coal, First
Management, Sundance.
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After one year of litigation discovery, no evidence was provided by Keystone, Javlin or Linton to
substantiate the business purposes for these payments by Keystone.
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Neither Mr. Javlin nor Mr. Linton drew a salary during the period 20x2-20x8.
Graphically present this information on one sheet of paper.
GRAPHICALLY PRESENT!!!!!!!
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