McDonald's of Zion, 432, Ill., Inc. v. Commissioner
United States Tax Court
McDonald's Corp. (McDonald's) wanted to acquire several franchised restaurants owned primarily by three individuals, Garb, Stern, and Imerman (the Garb-Stern group). McDonald's refused to offer any consideration other than its common stock because of financial accounting reasons. Although the Garb-Stern group wanted a cash transaction, they eventually agreed to accept 361,235 shares of unregistered common stock.
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McDonald's Corp. (McDonald's) wanted to acquire several franchised restaurants owned primarily by three individuals, Garb, Stern, and Imerman (the Garb-Stern group). McDonald's refused to offer any consideration other than its common stock because of financial accounting reasons. Although the Garb-Stern group wanted a cash transaction, they eventually agreed to accept 361,235 shares of unregistered common stock. The merger took place as of Apr. 1, 1973, whereupon McDonald's dropped down the acquired restaurants into wholly owned, operating subsidiaries (the petitioners herein). As part of the…
1Opinion of the Court
McDonald's of Zion, 432, Ill., Inc., et al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
McDonald's of Zion, 432, Ill., Inc. v. Commissioner
Docket Nos. 8083-77 -- 8109-77
United States Tax Court
76 T.C. 972; 1981 U.S. Tax Ct. LEXIS 114;
June 11, 1981, Filed
Decisions will be entered under Rule 155.
McDonald's Corp. (McDonald's) wanted to acquire several franchised restaurants owned primarily by three individuals, Garb, Stern, and Imerman (the Garb-Stern group). McDonald's refused to offer any consideration other than its common stock because of financial accounting reasons.…
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