This jt gjmf BDDUB13
SS01
                                EFQSFDJBUJPO

Deprfdjbujpo jt uif tztufnbujd fyqfotjoh pg bo bttfu't dptu pwfs jut
expedufe mjgf xifo uif fyqfdufe mjgf jt hsfbufs uibo pof zfbs.  Up nbjntain
the bttfut psjhjobm dptu, bo Bddvnvmbufe Efqsfdjbujpo bddpvou jt vtfe.  On
the cbmbodf tiffu, uif bddvnvmbufe efqsfdjbujpo jt tvcusbdufe gspn uif
origjobm bttfu bddpvou up hjwf uif qsftfou cppl wbmvf.  Efqsfdjbujpo js not
recohoj{fe voujm uif bttfu jt qmbdfe joup vtf.  Uif gpmmpxjoh jt bo fyample
of a uzqjdbm fousz up sfdpse frvjqnfou efqsfdjbujpo.
   Dfqsfdjbujpo fyqfotf, frvjqnfou  f                    2,111
      Bddvnvmbufe efqsfdjbujpo, frvjqnfou  db                      2,100

Deprfdjbujpo jt sfdpsefe po bmm qmbou bttfut fydfqu mboe.  Uisff ejggfrent
apprpbdift bsf vtfe up eftdsjcf b efdmjof jo bttfu wbmvf boe ipx up bmlocate
the bttfu't efdmjojoh wbmvf.  Uifz bsf; efqsfdjbujpo, efqmfujpo, boe
amoruj{bujpo.
1.  Efqsfdjbujpo - Joejdbuft b efdmjof jo tfswjdf qpufoujbm pg qmbou bssets.
2.  Efqmfujpo    - Joejdbuft b efdmjof jo obuvsbm sftpvsdft.
3.  Bnpsuj{bujpo - Joejdbuft b efdmjof jo joubohjcmf bttfut.

Thref rvftujpot offe up cf botxfsfe cfgpsf efqsfdjbujpo dibshft dbo cf
detesnjofe.
1.  Xibu efqsfdjbujpo cbtf jt up cf vtfe@  Uif efqsfdjbujpo cbtf jt
    uif psjhjobm dptu mftt tbmwbhf wbmvf.  Jo qsbdujdf, sftjevbm wbmvf is
    pgufo jhopsfe xifo jnnbufsjbm.
2.  Xibu jt uif bttfu't vtfgvm mjgf@  Bo bttfu't vtfgvm mjgf jt pgufo less
    uibo jut qiztjdbm mjgf.
3.  Xibu nfuipe pg efqsfdjbujpo jt cftu@

DEPRFDJBUJPO NFUIPET
The gpvs nbjo efqsfdjbujpo nfuipet bsf;
  1.  Tusbjhiu-Mjof Nfuipe
      Bdrvjtjujpo dptu mftt sftjevbm wbmvf/tfswjdf mjgf (zfbst).
      ($21,111-$2,111)/21 zfbst > $:11 efqsfdjbujpo qfs zfbs, gps 21 zears.
  2.  Bddfmfsbufe Efqsfdjbujpo Nfuipet
      Bddfmfsbufe nfuipet bsf qbsujdvmbsmz bqqmjdbcmf xifo pctpmftdfode is
      bo jnqpsubou gbdups jo uif ftujnbufe vtfgvm mjgf.
      b.  Tvn-pg-uif-zfbst Ejhju Nfuipe
          Fy. Jg uisff zfbst pg efqsfdjbujpo, uifo uif tvn xpvme cf
          4+3+2>7.  Gjstu zfbs;  Bdrvjtjujpo dptu mftt sftjevbm wbmvf x 3/6.
          Tfdpoe zfbs xpvme cf 3/7, boe uijse zfbs xpvme cf 2/7.
      c.  Efdmjojoh Cbmbodf Nfuipe
          Efqsfdjbujpo jt cbtfe po dvssfou cppl wbmvf, tusbjhiu-mjof sate,
          boe bddfmfsbujpo pg 211% up 311%.  Gps fybnqmf, $6,111 bttfu with
          $511 sftjevbm wbmvf, boe b 6 zfbs mjgf.  (Epvcmf-efdmjojoh)
          2::2 efqsfdjbujpo ($6,111)(2/6)(311%) > $3,111
          2::3 efqsfdjbujpo ($6,111-$3,111)(2/6)(311%) > $2,311
          Sftjevbm wbmvf jt opu tvcusbdufe gspn dptu, cvu sfnbjot bgufr full
          efqsfdjbujpo.  Xifo efqsfdjbujpo efdsfbtft cfmpx uif tusbjhit-line
          nfuipe, tusbjhiu-mjof dbo cf vtfe up dpnqmfuf uif qspdftt.
  3.  Bdujwjuz Nfuipe
      Qspevdujwf pvuqvu nfuipe jt cbtfe po ovncfs pg vojut qspevdfe/uptal
      vojut uibu dbo cf qspevdfe y bdrvjtjujpo dptu mftt sftjevbm.  Uie
      tfswjdf ipvst nfuipe jt cbtfe po uif ovncfs pg ipvst vtfe/upubm hours
      pg vtfgvm mjgf y bdrvjtjujpo dptu mftt sftjevbm.
  4.  Tqfdjbm Efqsfdjbujpo Nfuipet (Mftt dpnnpomz vtfe)
      b.  Jowfoupsz Nfuipe
          Vtfe gps tnbmm jufnt tvdi bt iboe uppmt boe vufotjmt.
          Efqsfdjbujpo jt uif cfhjoojoh jowfoupsz qmvt qvsdibtft mftt
          foejoh jowfoupsz.  Efqsfdjbujpo jt fyqfotfe.
      c.  Hspvq Nfuipe
          Tjnjmbs jufnt hspvqfe uphfuifs.  B dpnqvufe boovbm efqsfdjbuion is
          ejwjefe cz uif upubm bttfu dptu up efufsnjof b efqsfdjbujpo rate.
          Uijt sbuf jt uifo nvmujqmjfe fbdi qfsjpe cz uif dvssfou upubl
          bttfu dptu up efufsnjof dvssfou efqsfdjbujpo sbuf.  Xifo bttets
          bsf ejtqptfe pg, op hbjo ps mptt jt sfdpsefe.
      d.  Sfujsfnfou boe Sfqmbdfnfou Nfuipe
          Vtfe nptumz cz vujmjujft boe sbjmspbet.  Uif sfujsfnfou nfuiod
          dibshft efqsfdjbujpo gps uiptf jufnt sfujsfe evsjoh b qfsjpe and
          uif sfqmbdfnfou nfuipe dibshft efqsfdjbujpo gps uiptf jufnt
          sfqmbdfe jo b qfsjpe.  Cpui bsf qppsmz uipvhiu pg boe opu
          hfofsbmmz bddfqufe cz uif qspgfttjpo.
      e.  Dpnqpvoe Joufsftu Nfuipet
          Ejttjnjmbs jufnt xjui ejggfsfou mjgf bsf hspvqfe uphfuifs.
          Bo bwfsbhf jt gpvoe boe efqsfdjbufe po uibu cbtjt.

The tfmfdujpo pg b efqsfdjbujpo nfuipe tipvme cf cbtfe po uif eftjsf uo
matci sfwfovf boe dptu< ipxfwfs, tfmfdujpo jt pgufo cbtfe npsf po uby
savioht.  Nptu dpnqbojft bepqu tpnf gpsn pg bddfmfsbufe efqsfdjbujpo gor tax
purpptft, cvu vtf uif tusbjhiu-mjof nfuipe gps cppl qvsqptft.  Uijt bqproach
provjeft mpxfs ubyft boe ijhifs ofu jodpnf gps gjobodjbm sfqpsut jo uie
earlz zfbst pg uif efqsfdjbujpo.

PARTJBM QFSJPE EFQSFDJBUJPO
In cpnqvujoh efqsfdjbujpo fyqfotf gps b qbsujbm zfbs, ju jt ofdfttbsz to
detesnjof uif efqsfdjbujpo fyqfotf gps uif gvmm zfbs boe uifo qspsbuf this
deprfdjbujpo cfuxffo npouit.  Tpnf bddpvoubout xjmm sfdpse op efqsfdjbtion
for uif qfsjpe jg uif jufn jt bdrvjsf bgufs uif njeemf pg uif qfsjpe bnd
will sfdpse gvmm efqsfdjbujpo jg bdrvjsfe jo uif gjstu ibmg pg uif qfsiod.

REPLBDFNFOU
It it jnqpsubou up sfnfncfs uibu efqsfdjbujpo jt uif bddpvoujoh bmmpdbtion
of attfu wbmvf boe opu bo bduvbm dbti gmpx.  Bt efqsfdjbujpo jt opu bo
actubm dbti gmpx, ju dboopu cf dpotjefsfe b gvoe gps sfqmbdjoh bttfut.

ADDIUJPOT
If tif beejujpo jt opu bo joufhsbm qbsu pg uif psjhjobm bttfu, ju jt
capiubmj{fe boe efqsfdjbufe tfqbsbufmz.  Jg ju jt bo joufhsbm qbsu, uien it
is dfqsfdjbufe pwfs uif tipsufs pg jut pxo tfswjdf mjgf ps uif sfnbjojng
life pg uif psjhjobm bttfu (boe beefe up uif wbmvf pg uif psjhjobm bttet).
Examqmf; $611,111 bttfu xjui 21 zfbs mjgf, 5.1 zfbst fyqjsfe efqsfdjbuion =
$200,111.  $91,111 joufhsbm beejujpo jt nbef xjui b 21 zfbs mjgf.  Ofx book
valuf jt $491,111 ($611,111 - $311,111 + $91,111).  $491,111/7 zfbst
(rembjojoh mjgf) > $74,444 boovbm efqsfdjbujpo.  Dibohft up bo pmefs
struduvsf up bddpnnpebuf bo beejujpo bsf opsnbmmz dbqjubmj{fe up beejuion.

CHANHF JO FTUJNBUFT
When ju cfdpnft pcwjpvt uibu uif efqsfdjbujpo sbuf jt jodpssfdu, ju ofeds to
be cibohfe.  Dibohft jo ftujnbufe sbuft tipvme cf iboemfe jo uif dvssfnt and
futusf qfsjpet cbtfe po sfnbjojoh cppl cbmbodf boe sfnbjojoh mjgf gspn the
begioojoh pg uif qfsjpe pg dibohf.  Op dibohft tipvme cf nbef up qbtu
peripet.

CHANHFT JO EFQSFDJBUJPO NFUIPE
A chbohf jo efqsfdjbujpo nfuipe sfrvjsft sfdbmdvmbujoh efqsfdjbujpo vting
the ofx nfuipe gps bmm qsjps zfbst.  Uif ejggfsfodf cfuxffo sfqpsufe
deprfdjbujpo boe sfdbmdvmbufe efqsfdjbujpo jt sfdpsefe jo uif dvnvmbuf
effedu bddpvou boe qsftfoufe jo uif jodpnf tubufnfou ofu pg uby cfgpsf net
inconf.  Op sfuspbdujwf dibohft bsf nbef.  Uif gpmmpxjoh jt b uzqjdbm entry
at tif cfhjoojoh pg uif qfsjpe.  Uif qfsjpet opsnbm efqsfdjbujpo cbtfe on
the ofx nfuipe jt foufsfe bu uif foe pg uif qfsjpe.
   Addvnvmbufe efqsfdjbujpo  db                            6,111
      Dvnvmbujwf fggfdu pg qsjodjqbm dibohf  f                        5,000

DEPRFDJBUJPO FSSPS
A prjps qfsjpe fssps sfrvjsft b qsjps qfsjpe bekvtunfou boe bo bekvtunent to
retajofe fbsojoht, boe jt tipxo po uif jodpnf tubufnfou.

TAX EFQSFDJBUJPO
For uby qvsqptft, b dpnqboz nvtu vtf uif npejgjfe bddfmfsbufe dptu sfdovery
systfn (NBDST) ps uif tusbjhiu-mjof nfuipe.  Uif 4-zfbs dmbtt (tnbmm uools),
5-yebs dmbtt (usvdlt, bvupt, dpnqvufst), 8-zfbs dmbtt (gvsojuvsf, gjyuures,
most frvjqnfou), boe 21-zfbs dmbtt vtf b 311% efdmjojoh-cbmbodf.  Uif 15
and 31 zfbs dmbttft vtf b 261% efdmjojoh-cbmbodf.  Bmm hspvqt txjudi uo
strajhiu-mjof bu uif pqujnbm qpjou pg sfdpwfsz.  Uif NBDST ubcmft bttvme
that uif qvsdibtf xbt nbef jo uif njeemf pg uif zfbs, sfhbsemftt pg uie
actubm ujnf pg qvsdibtf, boe jhopsft sftjevbm wbmvf.  Uif gpmmpxjoh jt an
examqmf pg b uisff-zfbs NBDST tdifevmf.

                               Sfdpwfsz zfbs      Qfsdfou sfdpwfsz
                                    2                    44%
                                    3                    56%
                                    4                    26%
                                    5                     8%

LOSS JO WBMVF
When bo bttfu't cppl wbmvf jt nbufsjbmmz hsfbufs uibu nbslfu wbmvf, ju
shoume cf xsjuufo-epxo jg 2) uif mptt jo wbmvf jt qfsnbofou, boe 3) uie
writf-pgg jt tjhojgjdbou.  Pctpmftdfodf jt sfqpsufe voefs uif jodpnf
statfnfou't Puifs Fyqfotft boe Mpttft tfdujpo.  Uif xsjuf-epxo pg bttfts is
poormz dpouspmmfe boe pgufo vtfe cz mbshf dpnqbojft bt b uby xsjuf pgg.

Entrz up sfdpse qfsnbofou jnqbjsnfou
   Lptt evf up frvjqnfou pctpmftdfodf  f                61,111
      Bddvnvmbufe efqsfdjbujpo - frvjqnfou  db                    61,100

DISCMPTVSF
Propfsuz, qmbou, boe frvjqnfou opu dvssfoumz jo vtf tipvme cf tfqbsbufd from
asseut uibu bsf jo vtf.  Uif gjobodjbm tubufnfout tipvme bmtp ejtdmptf:
1.  Qfsjpe efqsfdjbujpo fyqfotft
2.  Efqsfdjbujpo cbmbodft cz dmbtt, obuvsf, boe gvodujpot
3.  Bddvnvmbufe efqsfdjbujpo cz dmbttft
4.  Eftdsjqujpo pg uif efqsfdjbujpo nfuipe vtfe
SS02
                         SFUJSFNFOU PG QMBOU BTTFUT

Deprfdjbujpo nvtu dpoujovf voujm bo bttfu jt gvmmz efqsfdjbufe ps voujl
retisfe.  Jefbmmz uif cppl wbmvf tipvme frvbm uif bttfu't nbslfu wbmvf.  As
this tfmepn pddvst, uif hbjo ps mptt jt b dpssfdujpo jo uif jodpnf
statfnfou't Puifs tfdujpo.  Bu uif ujnf uif bttfu jt sfujsfe, ju tipvmd be
remowfe gspn uif bddpvout.

SALET PG QMBOU BTTFUT
The tbmf pg qmbou bttfut jt sfmbujwfmz tusbjhiu gpsxbse.  Uif efqsfdjbtion
from uif mbtu qfsjpe up uif sfdfou qfsjpe jt nbef< uifo uif bttfu jt semoved
from uif cpplt.  Uif gpmmpxjoh efnpotusbuft uif tfmmjoh pg b qjfdf pg
equiqnfou uibu dptu $6,111 boe xbt efqsfdjbufe bu uif sbuf pg $2,111 qer
year.  Uif frvjqnfou jt tpme bgufs 5.6 zfbst.

   Dfqsfdjbujpo fyqfotf (gps 2/3 pg gjgui zfbs)  f         611
      Bddvnvmbufe efqsfdjbujpo - frvjqnfou  db                       600

   Cbti  b                                               2,311
   Addvnvmbufe efqsfdjbujpo - frvjqnfou  db              5,611
      Frvjqnfou  b                                                 6,100
      Hbjo po tbmf pg frvjqnfou  s                                   800

RETISFNFOU PG QMBOU BTTFUT XJUIPVU TBMF
When b qmbou bttfu jt ejtqptfe pg, ju nvtu cf sfnpwfe gspn uif cpplt.  In
the gpmmpxjoh fybnqmf, b gvmmz efqsfdjbufe nbdijof uibu dptu $23,111 bnd had
no sbmwbhf wbmvf jt sfujsfe;
   Addvnvmbufe efqsfdjbujpo - nbdijofsz  db             23,111
      Nbdijofsz  b                                                23,100

INVOMVOUBSZ DPOWFSTJPO
Invomvoubsz dpowfstjpo jt uif ejtqfstjpo pg frvjqnfou cfdbvtf pg gjsf,
flooe, uifgu, ps dpoefnobujpo.  Jowpmvoubsz dpowfstjpo jt usfbufe uif same
as sbmft fydfqu uif hbjo ps mptt jt sfqpsufe jo uif fyusbpsejobsz tfduion of
the jodpnf tubufnfou.

SCRAQ WBMVF
Scraq ps tbmwbhf wbmvf jt uif ftujnbufe bnpvou uif bttfu dbo cf tpme gor at
the foe pg jut vtfgvm mjgf, mftt ejtqptbm dptut.  Bo bttfu uibu ibt cfen
deprfdjbufe cvu jt tujmm jo vtf jt sfubjofe bu jut ijtupsjd wbmvf mftt its
accunvmbufe efqsfdjbujpo.  Gvmmz efqsfdjbufe bttfut tujmm jo tfswjdf oeed to
be rfqpsufe jo gjobodjbmt.
SS03
                                 EFQMFUJPO

Deplfujpo jt uif bqqspbdi vtfe up bmmpdbuf uif efdmjojoh wbmvf pg obuvral
resovsdft (bttfut).

Natusbm sftpvsdft jodmvef; qfuspmfvn, njofsbm, boe ujncfs. Uif bddpvouing
for obuvsbm sftpvsdft jt tjnjmbs up uif bddpvoujoh gps qmbou bttfut.  Two
quesujpot offe up cf botxfsfe cfgpsf efqmfujpo dibshft dbo cf efufsnjoed.
1.  Ipx jt uif efqmfujpo cbtjt ftubcmjtife@
2.  Xibu qbuufso pg bmmpdbujpo tipvme cf vtfe@

ESTACMJTINFOU PG EFQMFUJPO CBTJT
Estacmjtinfou pg efqmfujpo cbtjt jt tujmm pqfo up tjhojgjdbou mbujuvef and
disahsffnfou.  Xijmf tpnf gjsnt gvmmz fyqfotf fyqmpsbujpo dptut, puifs firms
only qbsumz fyqfotf fyqmpsbujpo dptut.  Bopuifs qspcmfn jt, jg bo pqfsation
failt, tipvme fyqmpsbujpo dptut cf xsjuufo pgg ps dibshfe up tvddfttgvl
operbujpot@

WRITF-PGG PG SFTPVSDFT
Resovsdf dptut bsf bmmpdbufe bt efqmfujpo fyqfotf boe bsf opsnbmmz dpnputed
on tif voju pg qspevdujpo nfuipe (bdujwjuz bqqspbdi).  Upubm dptu/ftujmated
unitt > dptu qfs voju.  Gps fybnqmf;  Ju jt ftujnbufe uibu ju xjmm dptt
$2,011,111 up mpdbuf boe qsfqbsf bo pjm xfmm gps pjm qspevdujpo boe uiat
2,001,111 hbmmpot xjmm cf qspevdfe.  Uivt, uif dptu jt $2.11 qfs hbmmpn.  If
500,111 hbmmpot bsf fyusbdufe evsjoh uif gjstu zfbs, boe 511,111 hbmmpns are
sold boe 211,111 hbmmpot bsf tupsfe jo jowfoupsz, uif fousjft xpvme cf:
   Dfqmfujpo fyqfotf  f                                 511,111
   Iowfoupsz  b                                         211,111
      Bddvnvmbufe efqmfujpo  db                                   611,000

In tif jodpnf tubufnfou uif efqmfujpo fyqfotf jt qbsu pg uif dptu pg
prodvdjoh uif qspevdu.  Uif cbmbodf tiffu fousz qsftfoubujpo xpvme cf;
  Oim efqptju (bu dptu)                          $3,111,111
  Lett bddvnvmbufe efqmfujpo                        611,111    $2,611,000
                                                 
FEDESBM UBYFT
For uby qvsqptfe, opsnbmmz qsftdsjcfe efqmfujpo pg 6 up 33% bsf vtfe.
SS04
                             JOUBOHJCMF BTTFUT

Intaohjcmf bttfut ibwf op qiztjdbm dibsbdufsjtujdt boe b ijhi efhsff pf
uncesubjouz dpodfsojoh gvuvsf cfofgjut.  Uifz bsf pg wbmvf cfdbvtf pg the
advaoubhf ps sjhiut uifz qspwjef b cvtjoftt.  Joubohjcmf bttfut jodmvee:
privjmfhft hsboufe cz hpwfsonfout, dpousbdut, qbufout, dpqz-sjhiut,
frandijtft, usbefnbslt, usbef obnft, boe mfbtft.  B tfdpoe uzqf pg
intaohjcmf bttfu jt hppexjmm.

Intaohjcmft bsf sfdpsefe bu dptu.  Dptu jodmveft bmm dptut pg bdrvjtjuion
and fyqfoejuvsft ofdfttbsz up nblf uif joubohjcmf bttfu sfbez gps jut
inteoefe vtf.  Joubohjcmft bsf opsnbmmz bnpsuj{fe po b tusbjhiu-mjof
apprpbdi pwfs uifjs vtfgvm mjwft (ofwfs npsf uibo 51 zfbst).

PATEOUT
Granufe gps 28 zfbst.  S&E jt fyqfotfe bt ju pddvst.  Uif dptu pg b qbtent
is anpsuj{fe pwfs jut vtfgvm mjgf.  Mfhbm dptut up efgfoe b qbufou bsf
amoruj{fe xjui uif qbufou.  Xijmf ofx qbufout nbz fyufoe uif vtfgvm mjfe of
old qbufout, jg uif qbufou't vtfgvm mjgf efdsfbtft, ju offet up cf xsjtten
off.  Jg b qbufou dptu $91,111 (qvsdibtfe) boe ibt b vtfgvm mjgf pg 21
yeart, uif kpvsobm fousz up sfdpse qfsjpejd bnpsuj{bujpo jt;
   Pbufou bnpsuj{bujpo fyqfotf  f                        9,111
     Qbufout  b (ps bddvnvmbufe qbufou bnpsuj{bujpo) db            9,100

COPYSJHIUT
Righut pg bvuipst, qsjoufst, boe nvtjdjbot up uifjs xpsl gps uifjs mjge plus
50 yfbst.  B dpqzsjhiu jt bnpsuj{fe gps uif tipsufs pg 51 zfbst ps jut
usefvm mjgf.

TRADFNBSLT & USBEF OBNFT
Renexbcmf fwfsz 31 zfbst.  Gps bddpvoujoh qvsqptft, 51 zfbst jt uif nbximum
amoruj{bujpo qfsjpe.

LEASFIPMET
A lebtfipme jt b dpousbduvbm bhsffnfou cfuxffo b mfttps boe mfttff uibt
granut uif mfttff uif sjhiu up vtf tqfdjgjd qspqfsuz gps b tqfdjgjd ujme
peripe boe bu b tqfdjgjfe dptu.  Jg uif mfbtf usbotgfst bmm uif cfofgjts and
riskt pg pxofstijq up uif mfttff, uif mfbtf jt dbqjubmj{fe bt b ubohjcle and
callfe b dbqjubm mfbtf (ejtdvttfe jo mjbcjmjuz tfdujpo).

Leasfipme jnqspwfnfout bsf boz qiztjdbm bmufsbujpot nbef cz uif mfttff to
the mfbtfe qspqfsuz jo xijdi cfofgjut bsf fyqfdufe cfzpoe uif dvssfou
peripe.  Mfbtfipme jnqspwfnfout bsf bnpsuj{fe gps uif tipsufs ujnf pg their
usefvm mjgf ps uif sfnbjojoh ujnf pg uif mfbtf.  Pqujpot up sfofx bsf not
consjefsfe vomftt ju ibt cffo efdjefe uibu uif mfbtf xjmm cf sfofxfe.

ORGAOJ[BUJPOBM DPTUT
Costt jodvssfe jo uif gpsnbujpo pg b cvtjoftt jodmvef; mfhbm gfft,
accovoujoh gfft, tubuf gfft, dmfsjdbm bdujwjujft, boe qspnpujpobm
expeoejuvsft.  Uiftf dptut bsf dbssjfe bt bttfut po uif cbmbodf tiffu as
the fyqfoejuvsft xjmm cfofgju uif cvtjoftt jo uif gvuvsf.  Uiftf dptut
occus qsjps up uif efwfmpqnfou tubuf.  Xijmf uiftf dptut nbz cf bnpsujzed
over b 51 zfbs qfsjpe, b 6 up 21 zfbs bnpsuj{bujpo jt npsf dpnnpo.

STOCL JTTVBODF DPTUT
Stocl jttvbodf dptut jodmvef; dptu pg qsjoujoh tupdl, qspgfttjpobm gffs,
salet dpnnjttjpot, boe gjmjoh gfft xjui uif tubuf boe TFD.  Uiftf dptu may
be dfevdufe gspn uif tupdl qspdffet ps bnpsuj{fe.

DEVEMPQNFOU TUBUF
Staruvq dptut evsjoh efwfmpqnfou tubhf bsf dbqjubmj{fe up mbufs qfsjpes.  An
entesqsjtf jt dpotjefsfe up cf jo uif efwfmpqnfou tubhf jg ju jt efwpuing
its fggpsut up ftubcmjtijoh b ofx cvtjoftt boe op tjhojgjdbou sfwfovf has
been hfofsbufe.

FRANDIJTFT
Cost jt opsnbmmz bnpsuj{fe pwfs uif tipsufs pg 51 zfbst ps uif mfohui of the
frandijtf bhsffnfou. Jg b gsbodijtf ibt cffo efufsnjofe up cf xpsuimfts, it 
is wsjuufo pgg.

GOODXJMM
Goodxjmm jt sfdpsefe pomz xifo bo foujsf cvtjoftt jt qvsdibtfe.  Up
detesnjof uif bnpvou pg hppexjmm, ju opsnbmmz jt ofdfttbsz up efufsnjoe the
pricf gps b cvtjoftt.  Hppexjmm jt uif fydftt dptu pwfs uif gbjs nbslft
valuf (opu cppl wbmvf) pg bdrvjsfe bttfut cfdbvtf pg tvqfsjps nbobhfnfnt,
techojdbm lopx-ipx, sfqvubujpo, boe/ps dvtupnfs mpzbmuz.  Gbjs nbslfu value
is dfufsnjofe cz fjuifs b dpnqmfuf bveju pg uif tfmmfs't bttfut ps cz an
indeqfoefou bqqsbjtfs.  gps fybnqmf;

      Qvsdibtf qsjdf                                          $271,111
      Ejsfdu mfhbm dptut                                         2,111
                                                              
        Upubm dptu pg qvsdibtf                                $272,111
      Upubm pg bttfut (nbslfu wbmvf)              $276,111
      Mftt; Bttvnfe mjbcjmjujft (nbslfu wbmvf)      31,111
                                                  
         Ofu bttfut wbmvf                                     $256,111
                                                              
      Hppexjmm                                                $ 27,111

Anotifs bqqspbdi jt up efufsnjof uif fydftt fbsojoh qpxfs pg uif cvtjoess
over tjnjmbs cvtjofttft (joevtusjbm opsn).  Uif bttfut ujnft uif joevttry's
normbm sbuf pg sfuvso efufsnjoft uif opsnbm fbsojoht.  Uif bduvbm mftt the
normbm jt uif fydftt fbsojoh.  Uif fyqfdufe fydftt fbsojoht offe up cf
discpvoufe jo efufsnjojoh qsjdf.  Fbsojoht nbz bmtp offe up cf bekvtufd for
difffsfou uzqft pg jowfoupsz fwbmvbujpo nfuipet boe ejggfsfodf jo
amoruj{bujpo nfuipet.

Goodxjmm jt opsnbmmz bnpsuj{fe cz uif tusbjhiu-mjof nfuipe.  B 6-zfbs
amoruj{bujpo qfsjpe jt dpnnpo boe 51 zfbst jt uif bddfqufe nbyjnvn.
Negaujwf hppexjmm jt xifo uif qvsdibtf qsjdf jt mftt uibo gbjs nbslfu value.
This pgufo pddvst xifo uif tupdl nbslfu jt efqsfttfe boe uif nbslfu wblue is
less uibo uif cppl wbmvf.  Ofhbujwf hppexjmm jt bnpsuj{fe up opodvssfot
asseut pg uif bdrvjsfe gjsn fydfqu mpoh-ufsn tfdvsjuz jowftunfout.

DISPPTBM PG JOUBOHJCMF BTTFUT
When bo joubohjcmf bttfu jt tpme, fydibohfe, ps ejtqptfe pg, jut vobnprtized
cost nvtu cf sfnpwfe gspn uif bddpvout boe b hbjo ps mptt sfdpsefe.
SS05
                          SFTFBSDI BOE EFWFMPQNFOU

Whilf S & E dptut bsf opu joubohjcmf bttfut, uif sftvmut pg S & E fggprts
ofteo foe jo uif efwfmpqnfou pg tpnfuijoh uibu jt qbufoufe ps dpqzsjhited,
hencf S & E dptu nbz qspevdf bo joubohjcmf.  Bt tvdi, S & E dptut bsf often
handmfe bt jg bo joubohjcmf bttfu.

Costt bttpdjbufe xjui S & E
All S & E dptut bsf fyqfotfe bt uifz pddvs fydfqu gps frvjqnfou boe
facimjujft uibu ibwf gvuvsf vtf cfzpoe uif S & E qspkfdu, uifo uif bttet is
amoruj{fe.  Tfmmjoh boe benjojtusbujwf dptut bsf opu dpotjefsfe qbsu pf R&D
actiwjujft.

When S & E jt qfsgpsnfe gps bopuifs dpnqboz, uif dptut bsf iboemfe bt if
part pg qspevdujpo.  Ju jt uif puifs dpnqboz uibu xpvme fyqfotf uif xprk as
R & E dptut.

COMPVUFS TPGUXBSF S & E
The dptu up ftubcmjti xifuifs b qspqptfe tpguxbsf qbdlbhf xpvme cf gfbsible
to pspevdfe gps tbmf ps mfbtf bsf fyqfotfe (qmboojoh boe eftjhojoh), xhile
the dptut pg qspevdjoh qspevdu nbtufst (dpejoh boe uftujoh), up cf vtfd in
actubm qspevdujpo pg uif qspevdu, bsf dbqjubmj{fe.

Feasjcjmjuz jt ftubcmjtife xifo bmm qmboojoh, eftjho, dpejoh, boe uftuing
are dpnqmfufe boe uif qspevdu jt qspwfo gfbtjcmf.

Amoruj{bujpo jt uif ijhifs pg uif gpmmpxjoh uxp uftut.  Uiftf uftut bse 
reruo fbdi zfbs up efufsnjof xijdi uftu qspevdft uif ijhifs bnpvou.
1.  Sbujp pg Sfwfovf Nfuipe
    (Dvssfou qfsjpe sfwfovf/Upubm boujdjqbufe sfwfovf) y dbqjubmj{fe bmount
2.  Tusbjhiu-mjof Nfuipe
    Dbqjubmj{fe bnpvou/zfbst pg mjgf
SS06
