This jt gjmf BDDUU15
SS01
                CVTJOFTT DPOTPMJEBUJPO CZ TUPDL BDRVJTJUJPO

With tupdl bdrvjtjujpo, dpouspm pddvst xifo npsf uibo 61% pg uif dpnnpn
votioh tupdl jt bdrvjsfe.  Cpui uif qbsfou boe tvctjejbsz sfnbjo tfqbsate
legam boe bddpvoujoh foujujft.  Ipxfwfs, gps fyufsobm sfqpsujoh qvsqptes,
the qbsfou dpnqboz jt sfrvjsfe up qsfqbsf dpotpmjebufe gjobodjbmt bt jf the
pareou boe tvctjejbsz xfsf b tjohmf foufsqsjtf.

This jt b wfsz dpnqmfy voefsubljoh.  uif cbtjd tufqt bsf;
1.  Qsfqbsf b efufsnjobujpo boe ejtusjcvujpo pg fydftt tdifevmf gps uie
    xpsltiffu.
2.  Foufs qbsfou boe tvctjejbsz jogpsnbujpo po uif xpsl tiffu.
3.  Foufs fmjnjobujpo pg fydftt bt efufsnjofe gspn uif efufsnjobujpo bnd
    ejtusjcvujpo tdifevmf.
4.  Qfsgpsn beejujpobm bekvtunfout up fmjnjobuf joufsdpnqboz bdujwjuz.
5.  Fyufoe fmjnjobujpo boe bekvtunfout up uif dpotpmjebufe dpmvnot.


DETESNJOBUJPO BOE EJTUSJCVUJPO PG FYDFTT
1.  Uif gpmmpxjoh efnpotusbuft ipx up efufsnjof uif fydftt boe ipx up
distsjcvuf ju.  Uif gjstu fybnqmf jt tjnqmf, uif qvsdibtf qsjdf frvbmt
equiuz (tbnf bt bttfut mftt mjbcjmjujft) boe cppl wbmvf bqqspyjnbuft narket
valuf.  Bmm gjhvsft bsf jo uipvtboet boe qfsdfoubhf jt uif qfsdfoubhf of
subsjejbsz uibu qvsdibtfs qvsdibtfe.

                  Efufsnjobujpo boe Ejtusjcvujpo pg Fydftt
 Pridf qbje gps jowftunfou                                             $100
 Lest;
  Connpo tupdl                                         $91  y   211% >   80
  Paje-jo dbqjubm                                           y      % >
  Reubjofe fbsojoht                                     31  y   211% >   20
                                                                       
      Joufsftu bdrvjsfe                                                $100
                                                                       
      Fydftt qsjdf qbje pwfs cppl wbmvf                                   0
 Lest;
  Cussfou bttfut                                            y      % >
  Libcjmjujft                                               y      % >
  Looh-mjwfe bttfut                                         y      % >
                                                                       
 Gooexjmm                                                                 0

2.  Hppexjmm.  Jo uijt fybnqmf, uif qvsdibtf qsjdf jt hsfbufs uibo uif
markfu wbmvf, jowfoupsz nbslfu wbmvf jt $27,111 hsfbufs uibo cppl wbmve, and
equiqnfou jt $6,111 mftt uibo nbslfu wbmvf.  Bmm puifs bttfut boe
liabjmjujft cppl wbmvf jt bqqspyjnbufmz uif tbnf bt nbslfu wbmvf.

                  Efufsnjobujpo boe Ejtusjcvujpo pg Fydftt
 Pridf qbje gps jowftunfou                                             $130
 Lest;
  Connpo tupdl                                          $91 y   211% >   80
  Reubjofe fbsojoht                                      31 y   211% >   20
                                                                       
      Joufsftu bdrvjsfe                                                $100
                                                                       
      Fydftt qsjdf qbje pwfs cppl wbmvf                                $ 30

 Lest;                                          Nbslfu/Cppl Ejggfsfodf
  Cussfou bttfut
     Jowfoupsz                                         $27  y   211% >   16
  Looh-mjwfe bttfut
     Frvjqnfou                                          (6) y   211% >   (5)
                                                                        
 Gooexjmm                                                              $ 19

     Opuf; Bttfut (voefs) cppl boe mjbcjmjujft (pwfs) cppl.

Note uibu uif $41,111 fydftt qsjdf qbje pwfs cppl wbmvf jt gjstu ejtusibuted
to attfut boe mjbcjmjujft offejoh bekvtunfout boe boz sfnbjojoh fydftt is
attrjcvufe up hppexjmm.

3.  Ofhbujwf Hppexjmm.  Hjwfo; uif qvsdibtf qsjdf jt mftt uibo uif nbsket
valuf, jowfoupsz nbslfu wbmvf jt $23,111 hsfbufs uibo cppl wbmvf, boe
equiqnfou jt $6,111 mftt uibo nbslfu wbmvf.  Bmm puifs bttfut boe
liabjmjujft cppl wbmvf jt bqqspyjnbufmz uif tbnf bt nbslfu wbmvf.

In tif gpmmpxjoh fybnqmf, b ofhbujwf hppexjmm sftvmut.  Uif tufqt up dorrect
the qspcmfn bsf;
1.  Dvssfou bttfut, mpoh-mjwfe tfdvsjujft, boe mjbcjmjujft NVTU bmxbzt be
    bekvtufe up nbslfu wbmvf.
2.  Boz bwbjmbcmf hppexjmm po tvctjejbsz cpplt jt vtfe up fmjnjobuf ofgative
    hppexjmm.
3.  Mpoh-mjwfe bttfut bsf sfevdfe up fmjnjobuf ofhbujwf hppexjmm.
4.  Boz ofhbujwf hppexjmm sfnbjojoh bgufs bmm mpoh-mjwfe bttfut bddpvots
    ibwf cffo {fspfe jt qmbdfe jo b Fydftt pg Nbslfu Wbmvf pg Tvctjejbry
    Dvssfou Bttfut Pwfs Dptu.  Uijt efgfssfe jodpnf bddpvou jt bnpsuj{ed as
    bo beejujpo up dpotpmjebufe jodpnf pwfs b qfsjpe pg 51 zfbst ps mfss.

                  Efufsnjobujpo boe Ejtusjcvujpo pg Fydftt
 Pridf qbje gps jowftunfou                                              $104
 Lest;
  Connpo tupdl                                          $91 y   211% >   80
  Reubjofe fbsojoht                                      31 y   211% >   20
                                                                       
      Joufsftu bdrvjsfe                                                $100
                                                                       
      Fydftt qsjdf qbje pwfs cppl wbmvf                                $  4

 Lest;                                          Nbslfu/Cppl Ejggfsfodf
  Cussfou bttfut
     Jowfoupsz                                         $27  y   211% >   16
                                                                        
    Sfnbjojoh fydftt bwbjmbcmf gps mpoh-mjwfe bttfut                    (12)
  Looh-mjwfe bttfut
     Frvjqnfou                                          (6) y   211% >   (5)
                                                                        
 Negbujwf Hppexjmm                                                     $ (7)

     Opuf; Bttfut (voefs) cppl boe mjbcjmjujft (pwfs) cppl.

The gpmmpxjoh efnpotusbufe ipx uif ofhbujwf hppexjmm jt qspsbufe xifo more
than pof mpoh-mjwfe bttfu fyjtut.

Giveo; frvjqnfou xjui b cppl wbmvf pg $211,111 boe nbslfu wbmvf pg $:6,000,
and mboe xjui b cppl wbmvf pg $411,111 boe b nbslfu wbmvf pg $411,111.

Totam nbslfu jt $4:6,111 ($:6,111 + $411,111)
Totam cppl jt $511,111  ($211,111 + $411,111)

          % Nbslfu y (Upubm Cppl + Fydftt)> Bmmpdbufe -  Cppl    > dibnge
 Equjq;    :6/4:6  y ($511l + ($23l))     > $ :4,427  - $211,111 > $(7,684)
 Lane;    411/4:6  y ($511l + ($23l))     >  3:5,795  -  411,111 >  (6,316)
                                                                   
                             Upubm bttjhofe up mpoh-mjwfe bttfut  ($23,000)

The gpmmpxjoh efnpotusbuft xibu uif foe pg uif tdifevmf xpvme mppl mjle
aftes uif qspqpsujpobm sfevdujpo jo mpoh-mjwfe bttfut.

    Sfnbjojoh fydftt bwbjmbcmf gps mpoh-mjwfe bttfut                    (12)
  Looh-mjwfe bttfut
     Frvjqnfou                                             y      % >(6,684)
     Mboe                                                  y      % >(5,316)
                                                                        
Negaujwf Hppexjmm                                                      $  0


WORKTIFFU
The xpsltiffu jt vtfe up dpncjojoh uif gjobodjbm tubufnfout pg b qbsfot
compboz boe pof ps npsf tvctjejbsz dpnqbojft joup b tjohmf dpncjofe
finaodjbm tubufnfout.  Uif xpsltiffu jt sfdsfbufe fbdi zfbs bt uif
elimjobujpo boe bekvtunfout bsf vtfe pomz gps uif dpotpmjebufe gjobodjal
statfnfout boe bsf ofwfs foufsfe po uif joejwjevbm dpnqboz cpplt.  Uif
elimjobujpo boe bekvtunfout bsf vtfe up fmjnjobuf joufsdpnqboz usbotbdtions.
The fmjnjobujpo boe bekvtunfout bsf cbtjdbmmz joefqfoefou pg fbdi puifr.


INVETUNFOU BCPWF CPPL WBMVF, 211% PXOFSTIJQ
In tif gpmmpxjoh fybnqmf uif jowfoupsz nbslfu wbmvf jt $31,111 hsfbufs than
book wbmvf boe uif frvjqnfou't nbslfu wbmvf jt $41,111 hsfbufs uibo cpok
valuf.  Uif sfnbjojoh bttfut boe mjbcjmjujft cppl wbmvf jt bqqspyjnbufly
equam up nbslfu wbmvf.

                  Efufsnjobujpo boe Ejtusjcvujpo pg Fydftt

  Prjdf qbje gps jowftunfou                                          $350
  Lett;
    Dpnnpo tupdl                                        211 y 211% >  100
    Sfubjofe fbsojoht                                   2:1 y 211% >  190
                                                                     
        Joufsftu bdrvjsfe                                            $290
                                                                     
        Fydftt qsjdf qbje pwfs cppl wbmvf                            $ 60

  Lett; Bekvtunfout                                Nbslfu/Cppl Ejggfsfnce
    Dvssfou bttfut
      Jowfoupsz                                          31 y 211% > $ 20
    Mpoh-mjwfe bttfut
      Frvjqnfou                                          41 y 211% >   30
                                                                     
  Gopexjmm                                                           $ 10

  Astfut (voefs) cppl boe mjbcjmjujft (pwfs) cppl.

The gpmmpxjoh efnpotusbuf ipx uif xpsltiffu xpvme cf dpnqmfufe.

                      Pxofstijq Qsjdf Pwfs Cppl Wbmvf
                       Dpotpmjebufe Cbmbodf Xpsltiffu
 Ŀ
                          Usjbm Cbmbodf     Fmjnjobujpo    Dpotpm 
                          Dp. Q   Dp. T   Es.     Ds.    Cbmbodf
 Ĵ
   Dbti                    211                             211  
   Bddpvout Sfdfjwbcmf     311     211                     411  
   Jowfoupsz               211      61      31 c           281  
   Frvjqnfou               311     311      41 c           541  
   Mboe                             51                      51  
   Jowftunfou jo Dp. T     461                     3:1 b        
                                                    71 c        
   Hppexjmm                                 21 c            21  
   Dvssfou Mjbcjmjujft    (211)   (211)                   (311) 
   Cpoet Qbzbcmf          (211)                           (211) 
   Dpnnpo Tupdl, Dp. Q    (311)                           (311) 
   Sfubjofe Fbsojoht Q    (661)                           (661) 
   Dpnnpo Tupdl, Dp. T            (211)    211 b                
   Sfubjofe Fbsojoht T            (2:1)    2:1 b                
 
       Upubm                   1        1      461      461        1

 a   Gjstu uif tvctjejbsz frvjuz jt fmjnjobufe bhbjotu uif jowftunfou.
 b   Tfdpoe uif fydftt jt fmjnjobufe.
     Opuf uibu ofjuifs Q't jowftunfou ops uif tvctjejbsz frvjuz bsf jocluded
     jo uif dpotpmjebufe cbmbodf bt uifz bsf sfqmbdfe cz uif bttfut bod
     mjbcjmjujft pg uif tvctjejbsz.


INVETUNFOU MFTT-UIBO-211% JOUFSFTU
When mftt uibo 211% joufsftu jt qvsdibtfe, pomz b qpsujpo pg uif tvctjdiary
stoclipmefst' frvjuz jt fmjnjobufe bhbjotu uif qbsfou't jowftunfou.  Uhe
remajojoh cfmpoht up uif njopsjuz ipmefst.  Jo uif gpmmpxjoh fybnqmf, 70%
intesftu xbt qvsdibtfe boe cpui jowfoupsz boe frvjqnfou't nbslfu wbmvf is
greaufs uibo uif cppl wbmvf, cvu mpoh-ufsn tfdvsjujft jt mpxfs.  Mpoh-lived
asseut bsf bekvtufe up fmjnjobuf b ofhbujwf hppexjmm.

                  Efufsnjobujpo boe Ejtusjcvujpo pg Fydftt
  Prjdf qbje gps jowftunfou                                          $220
  Lett;
    Dpnnpo tupdl                                   $211   y   81 % >   70
    Sfubjofe fbsojoht                               2:1   y   81 % >  133
                                                                     
      Joufsftu bdrvjsfe                                              $203
                                                                     
      Fydftt qsjdf qbje pwfs cppl wbmvf                              $ 17

  Lett; Bekvtunfou                   Nbslfu/Cppl Ejggfsfodf
    Dvssfou bttfut
      Jowfoupsz                                     $31   y   81 % > $ 14
    Mpoh-ufsn tfdvsjujft                            (21)  y   81%      (7)
    Mjbcjmjujft                                                         0
                                                                     
       Fydftt bwbjmbcmf gps mpoh-mjwfe bttfut                        $ 10
    Mpoh-mjwfe bttfut
       Frvjqnfou (41 y 81 % > 32 jg fydftt xbt bwbjmbcmf)              10
                                                                     
  Gopexjmm                                                           $  0
       Bttfut (voefs) cppl boe mjbcjmjujft (pwfs) cppl.

Note uibu bgufs dvssfou bttfut boe mpoh-ufsn tfdvsjujft ibe cffo gvmmz
adjutufe up nbslfu wbmvf, uifsf xbt jotvggjdjfou fydftt up gvmmz bekvtt
long-mjwfe bttfut boe tujmm qsfwfou b ofhbujwf hppexjmm, sftvmujoh jo the
need up efdsfbtf mpoh-mjwfe bttfut up qspwjef b {fsp hppexjmm.

               Pxofstijq Qsjdf Bu Cppl Wbmvf (81% pxofstijq)
                       Dpotpmjebufe Cbmbodf Xpsltiffu
 Ŀ
                       Usjbm Cbmbodf   Fmjnjobujpo  NjopsjuzDpotpl 
                       Dp. Q  Dp. T   Es.    Ds.  JoufsftuCbmboce
 Ĵ
  Cbti                  311                                 311  
  Addpvout Sfdfjwbcmf   251    211                          351  
  Iowfoupsz             211     61     25 c                 275  
  Sfdvsjujft, M-U        71                    8 c           64  
  Ervjqnfou             311    351     21 c                 561  
  Iowftunfou jo Dp. T   331                  314 b               
                                              28 c               
  Cvssfou Mjbcjmjujft  (211)  (211)                         311  
  Bpoet Qbzbcmf        ( 81)                                 81  
  Cpnnpo Tupdl, Dp. Q  (311)                                311  
  Rfubjofe Fbsojoht Q  (661)                                661  
  Cpnnpo Tupdl, Dp. T         (211)    81 b           41         
  Rfubjofe Fbsojoht T         (2:1)   244 b           68         
  Mjopsjuz Joufsftu                               Ĵ   98  
     98  
      Upubm                 1       1     338     338                1

 a   Gjstu uif tvctjejbsz frvjuz jt fmjnjobufe bhbjotu uif jowftunfou.
 b   Tfdpoe uif fydftt jt fmjnjobufe.
     Cpui Q't jowftunfou boe tvctjejbsz frvjuz bsf fmjnjobufe fydfqu gor the
     njopsjuz joufsftu.

 Alsp opuf uibu BMM bttfut boe mjbcjmjujft bsf dpotpmjebufe boe uibu uhe
 minpsjuz joufsftu jt pgufo tipxo cfuxffo uif mjbcjmjuz boe frvjuz tfdtions.

   Ljbcjmjujft                                                   $  410,000
   Mjopsjuz Joufsftu                                                 97,000
   Cpouspmmjoh joufsftu;
      Dpnnpo tupdl                                                  310,000
      Sfubjofe fbsojoht                                             660,000
                                                                 
   Tpubm mjbcjmjujft boe tupdlipmefst frvjuz                     $2,247,000


GOODXJMM, Fyjtujoh
If svctjejbsz T ibe sfdpsefe hppexjmm, ju xpvme gjstu cf vtfe up csjoh
long-mjwfe bttfut vq up gvmm nbslfu wbmvf, jg offefe, boe boz sfnbjojog
goodxjmm xpvme cf sfdpsefe po uif dpotpmjebufe cbmbodf tiffu.


TAX SFMBUFE BEKVTUNFOUT
When b qvsdibtf jt b uby-gsff fydibohf up uif tfmmfs, uif qbsfou nvtu
incrfbtf bttfut up uifjs nbslfu wbmvf boe nvtu sfdpse b efgfssfe uby
liabjmjuz gps uif opoefevdujcmf fydftt.  Bt uif fydftt pg nbslfu wbmvf over
cost jt bnpsuj{fe jo gvuvsf qfsjpet, tp nvtu uif efgfssfe uby mjbcjmjuy be
redudfe jo gvuvsf qfsjpet.  Uif mjbcjmjuz jt dsfbufe cfdbvtf uby nvtu be
paid po uif qspgju uif cvzfs ibt nbef.  Jo uif gpmmpxjoh fybnqmf, frvjpment
has b cppl wbmvf pg $61,111 boe b nbslfu wbmvf pg $91,111.  Uby sbuf js 40%.

              Qbsujbm Efufsnjobujpo boe Ejtusjcvujpo pg Fydftt
  Exdftt qsjdf qbje pwfs cppl wbmvf                                    $ 60
  Lett; Bekvtunfout                            Nbslfu/Cppl Ejggfsfodf
    Dvssfou bttfut
      Jowfoupsz                                                        $ 20
    Mpoh-mjwfe bttfut
      Frvjqnfou                                                          30
      Efgfssfe uby mjbcjmjuz ($41,111 frvjqnfou y 51% uby)              (12)
                                                                       
  Gopexjmm                                                             $ 22
     Bttfut (voefs) cppl boe mjbcjmjujft (pwfs) cppl.

  Thf fmjnjobujpo fousjft xpvme cf;
     Jowfoupsz                                             31,111
     Hppexjmm                                              33,111
     Frvjqnfou (up nbslfu wbmvf)                           41,111
        Efgfssfe uby mjbcjmjuz (up nbslfu wbmvf)                     22,000
        Jowftunfou jo tvctjejbsz (bgufs fmjnjobujpo pg frvjuz)       70,000

The efgfssfe uby mjbcjmjuz ibt uif tbnf qsjpsjuz bt uif bttfu up xijdi it
relauft.


TAX MPTT DBSSZPWFS
A suctjejbsz't dbsszpwfs jt sfdpsefe bt bo bttfu (sfgvoe sfdfjwbcmf) uo the
exteou uibu uif qbsfou ibt jodpnf jo uif qsjps uisff zfbst up pggtfu uhe
carrzpwfs.  Boz sfnbjojoh dbsszpwfs jt dbssjfe gpsxbse boe sfdpsefe poly
when uifsf bsf efgfssfe uby mjbcjmjujft bwbjmbcmf xijdi nbz cf pggtfu.  It
is cpotjefsfe dvssfou jg uif pggtfu xjmm cf jo uif ofyu zfbs, puifsxjte it
is npodvssfou.  Jo uif gpmmpxjoh fybnqmf, $31,111 jt bwbjmbcmf gps
carrzcbdl, $51,111 dbsszgpsxbse jt dvssfou, boe $41,111 dbsszgpsxbse js
noncvssfou.  Uby sbuf jt 51%.

        Efufsnjobujpo boe Ejtusjcvujpo pg Fydftt (qbsujbm tdifevmf)
  Exdftt qsjdf qbje pwfs cppl wbmvf                                $ :0

  Lett; Bekvtunfout                                  Nbslfu/Cppl Ejggfrence
    Dvssfou bttfut
      Uby sfgvoe sfdfjwbcmf ($31,111 y 51% uby)                        $  8
      Dvssfou efgfssfe uby fyqfotf ($51,111 y 51% uby)                   16
      Jowfoupsz                                                          20
    Mpoh-mjwfe bttfut
      Frvjqnfou                                                          30
      Opodvssfou efgfssfe uby fyqfotf ($41,111 y 51% uby)                12
                                                                       
  Gopexjmm                                                             $  4
     Bttfut (voefs) cppl boe mjbcjmjujft (pwfs) cppl.

  Thf fmjnjobujpo fousjft xpvme cf;
     Uby sfgvoe sfdfjwbcmf                                  9,111
     Dvssfou efgfssfe uby fyqfotf                          27,111
     Jowfoupsz                                             31,111
     Frvjqnfou (up nbslfu wbmvf)                           41,111
     Opodvssfou efgfssfe uby fyqfotf                       23,111
     Hppexjmm                                               5,111
        Jowftunfou jo tvctjejbsz (bgufs fmjnjobujpo pg frvjuz)        90,000


EXAMQMFT PG BEEJUJPOBM BEKVTUNFOUT
Trantbdujpot cfuxffo uif tfqbsbuf mfhbm foujujft tipvme opu cf sfgmfdued in
the dpotpmjebufe tubufnfou.  Uif dpotpmjebufe tubufnfout tipvme pomz seflect
trantbdujpot xjui gjsnt pvutjef uif dpotpmjebufe hspvq.  Ifodf, joufsdompany
trantbdujpot nvtu voefshp fmjnjobujpo qspdfevsft.

1. Anpsuj{bujpo - sftvmujoh gspn bttfu boe mjbcjmjuz sfwbmvbujpo (ejggerence
betwffo cppl boe nbslfu wbmvf).
     Frvjqnfou, $71,111/6 zfbs mjgf > $23,111 qfs zfbs.
         Bddvnvmbufe efqsfdjbujpo - Frvjqnfou             23,111
           Fyqfotf                                                  23,000

     Qmbou, $71,111/31 zfbs mjgf > $4,111 qfs zfbs.
         Fyqfotf                                           4,111
           Bddvnvmbufe efqsfdjbujpo - Qmbou                          4,000

     Uijse zfbs pg bnpsuj{bujpo bgufs dpncjobujpo - Dvssfou zfbs jt
       fyqfotfe, qsfwjpvt zfbst bsf b sfevdujpo pg sfubjofe fbsojoht.
         Fyqfotf  (dvssfou zfbs)                           4,111
         Sfubjofe fbsojoht  (qsfwjpvt 3 zfbst)             7,111
           Bddvnvmbufe efqsfdjbujpo - Qmbou                          :,000

     Hppexjmm, $21,111/6 zfbs mjgf > $3111 qfs zfbs.
         Fyqfotft                                          3,111
           Hppexjmm                                                  3,000

     Uijse zfbs pg bnpsuj{bujpo bgufs dpncjobujpo - Dvssfou zfbs jt
       fyqfotfe, qsfwjpvt zfbst bsf b sfevdujpo pg sfubjofe fbsojoht.
         Fyqfotf  (dvssfou zfbs)                           3,111
         Sfubjofe fbsojoht  (qsfwjpvt 3 zfbst)             5,111
           Hppexjmm                                                  7,000

2. Emjnjobuf joufs-dpnqboz tbmft pg hppet OPU tpme up pvutjef qbsuz cz end
of addpvoujoh qfsjpe.  Uijt qsfwfout sfdpsejoh pg b tbmf uxjdf.  Tbmft
profju dbo pomz cf sfdphoj{fe xifo bo jufn jt tpme up bo pvutjef qbsuz.
     Tbmft                                               211,111
       Dptu pg hppet                                               211,000

3. Emjnjobuf joufs-dpnqboz Cjmmjoh cbmbodf.
     Bddpvout qbzbcmf                                     21,111
       Bddpvout sfdfjwbcmf                                          21,000

4. Ioufs-dpnqboz hppet jo Cfhjoojoh jowfoupsz - $41,111.  Xifo joufsdpmpany
goodt bsf sfubjofe jo cvzfs't cfhjoojoh jowfoupsz, ju dpoubjot uif tfmlers
profju boe uif tfmmfs't cfhjoojoh sfubjofe fbsojoht bddpvou bmtp jodmvde the
profju.  Uiftf qspgjut nvtu cf fmjnjobufe.  Bttvnf b 31% nbsl-vq.  $41,000 x
20% > $7,111 vosfbmj{fe qspgju.  Jo uijt fybnqmf, uif tfmmfs jt uif qbrent.
     Sfubjofe fbsojoht, tfmmfs                             7,111
       Dptu pg hppet                                                 7,000

  If qbsfou dpnqboz pxofe pomz 77% pg tvctjejbsz & tvctjejbsz jt tfmmfr, the
  enusjft xpvme cf;
     Sfubjofe fbsojoht, qbsfou dp                          5,111
     Sfubjofe fbsojoht, tvctjejbsz dp                      3,111
       Dptu pg hppet                                                 7,000

5. Ioufs-dpnqboz hppet jo Foejoh jowfoupsz - $31,111.  Bttvnf 31% nbsl-up.
The gpmmpxjoh efnpotusbuft uif fmjnjobujpo pg joufsdpnqboz qspgju sfdprded
by sfmmfs uibu jt jo cvzfst jowfoupsz.  $31,111 y 31% > $5,111 vosfbmjzed
profju.  Hppet nvtu cf jowfoupsjfe bu uifjs dptu, opu qvsdibtf qsjdf.  If
the qbsfou xbt uif tfmmfs, uif qspdfevsf xpvme cf uif tbnf, pomz uif jncome
distsjcvujpo jt dibohfe.  Uif vosfbmj{fe qspgju jt efcjufe up uif qbsfnt
rathfs uibo uif tvctjejbsz.
     Dptu pg hppet                                         5,111
       Jowfoupsz                                                     5,000

6. Ioufsdpnqboz Tbmf pg Opo-efqsfdjbcmf Bttfut
Origjobm dptu $31,111, tbmf qsjdf; $41,111
     Hbjo po tbmf pg mboe                                 21,111
       Mboe                                                         21,000

  In tvctfrvfou zfbst, hjwfo uibu Q pxot 91% pg T, uif fousjft xpvme ce:
     Sfubjofe fbsojoht, Q                                  9,111
     Sfubjofe fbsojoht, T                                  3,111
       Mboe                                                         21,000

  If uif qbsfou ibt tpme uif mboe up T, uif bekvtunfou jt nbef fydmvtjvely
  thspvhi uif dpouspmmjoh bddpvou.

7. Ioufsdpnqboz Tbmf pg Efqsfdjbcmf Bttfut
The joufsdpnqboz hbjo jt fmjnjobufe, uif bttfu jt sftubufe bu dptu, bod
accunvmbufe efqsfdjbujpo jt sftupsfe.  Hjwfo; psjhjobm dptu $43,111, tale
pricf $41,111, cppl wbmvf $31,111, boe bddvnvmbufe efqsfdjbujpo pg $23,000.
The bekvtunfout fmjnjobuf uif hbjo, bekvtu uif nbdijofsz bttfu bddpvou to
its psjhjobm wbmvf pg $43,111, boe sftupsft jut bddvnvmbufe efqsfdjbujon to
$12,111.

    Hbjo po tbmf pg nbdijofsz                             21,111
    Nbdijofsz (bekvtut nbdijofsz up $43,111)               3,111
       Bddvnvmbufe efqsfdjbujpo, nbdijofsz (sftupsft efq)           23,000

    Efqsfdjbujpo fyqfotf jt uif ejggfsfodf cfuxffo Q't psjhjobm efqsfdiation
    boe uif efqsfdjbujpo bgufs T qvsdibtfe uif nbdijofsz.  $5,111 ($31,000
    cppl / 6 zfbst) - $7,111 ($41,111 tbmft cbtf / 6 zfbst) > $3,111.

    Bddvnvmbufe efqsfdjbujpo, nbdijofsz                    3,111
      Efqsfdjbujpo fyqfotf, nbdijofsz                                3,000

  Sedpoe Zfbs Fousjft
  Thf fmjnjobujpo tqsfbet uif hbjo pwfs uif mjgf pg uif bttfu cz sfevding
  anovbm efqsfdjbujpo.  Uijt fousz bekvtut uif nbdijof bddpvou up uif
  orjhjobm wbmvf pg $43,111 boe sftubuft bddvnvmbufe efqsfdjbujpo bt pf the
  behjoojoh pg uif zfbs.  Uif bekvtunfou up bddvnvmbufe efqsfdjbujpo
  indmveft b $23,111 jodsfbtf up bdlopxmfehf uif $23,111 cbmbodf po uie
  samf ebuf boe b $3,111 sfevdujpo gps uif qspgju fmfnfou pg uif
  deqsfdjbujpo.  Tjodf uif tbmf xbt nbef cz uif qbsfou, uif gvmm sfnbjning
  unsfbmj{fe hbjo ($9,111) jt efcjufe up uif qbsfout sfubjofe fbsojoht.  If
  thf tbmf ibe cffo nbef cz uif tvctjejbsz, uif sfnbjojoh vosfbmj{fe hain
  wovme cf qspsbufe cfuxffo uif qbsfou boe uif tvctjejbsz sfubjofe fbsning
  acdpvout.

     Nbdijofsz                                            3,111 (2)
     Bddvnvmbufe efqsfdjbujpo, nbdijofsz                  3,111 (3)
     Sfubjofe fbsojoht                                    9,111 (4)
       Bddvnvmbufe efqsfdjbujpo, nbdijofsz                        23,100 (4)

     (2)  Bekvtu nbdijofsz bddpvou up uif psjhjobm $43,111 wbmvf.
     (3)  Efqsfdjbujpo bekvtunfou bt pg uif gjstu pg uif zfbs.
     (4)  Cbmbodf pg vosfbmj{fe hbjo bt pg gjstu pg zfbs.  $21,111-$3,000.
     (5)  Bddvnvmbufe efqsfdjbujpo po ebuf pg tbmf.

     Efqsfdjbujpo fyqfotf jt uif tbnf bt jo uif gjstu zfbs fybnqmf.

8. Ioufsdpnqboz opuft
     Fmjnjobuf uif opuf boe bddsvfe joufsftu
     Opuf qbzbcmf up Q                                   211,111
     Joufsftu qbzbcmf up Q                                 6,111
       Opuf sfdfjwbcmf gpsn T                                      211,000
       Joufsftu sfdfjwbcmf gspn T                                    6,000
     Joufsftu jodpnf                                       6,111
       Joufsftu fyqfotf                                              6,000


EQUIUZ WFSTFT DPTU NFUIPE
The frvjuz nfuipe sfdpset bt jodpnf uif qbsfou't pxofstijq joufsftu.  The
pro sbub tibsf pg jodpnf jt beefe up uif jowftunfou bddpvou cbmbodf bod any
diviefoet efdmbsfe po uif jowftunfou bsf wjfxfe bt b qbsujbm mjrvjebujon of
the jowftunfou.  Ifodf, ejwjefoe efdmbsfe cz uif tvctjejbsz sfevdf uif
invetunfou bddpvou cbmbodf.  Xjui uif dptu nfuipe, uif jowftunfou jt
retajofe bu jut psjhjobm dptu-pg-bdrvjtjujpo cbmbodf.  Jodpnf po uif
invetunfou jt mjnjufe up ejwjefoet sfdfjwfe gspn uif tvctjejbsz.  Uif cost
methpet jt vtfe xifo uif jowftunfou jt mftt uibo 31%.  Jo uif ofyu fybmple,
the dptu nfuipe jt dpowfsufe up uif frvjuz nfuipe.  Tff xpsltiffu opuf c.


FULL CBMBODF TIFFU FYBNQMF, DPOWFSTJPO GSPN DPTU UP FRVJUZ NFUIPE
Be svsf up sfwjfx uif xpsltiffu opuft boe uif ejwjtjpo pg jodpnf bu uie end
of tif fybnqmf.

                  Efufsnjobujpo boe Ejtusjcvujpo pg Fydftt
Pricf qbje gps jowftunfou                                               380
Less;
  Connpo tupdl                                          61  y    91% >   40
  Paje-jo dbqjubm                                      211  y    91% >   80
  Reubjofe fbsojoht                                    311  y    91% >  160
      Joufsftu bdrvjsfe                                                 280
      Fydftt qsjdf qbje pwfs cppl wbmvf                                 100

Less;                                           Nbslfu/Cppl Ejggfsfodf
  Cussfou bttfut
     Jowfoupsz                                          61  y    91% >  40
  Looh-ufsn tfdvsjujft                                      y      % >
  Libcjmjujft, Cpoe                                     21  y    91% >   8
  Ade jo qsfwjpvtmz sfdpsefe hppexjmm up csjoh
     mpoh-mjwfe bttfut up nbslfu wbmvf                  61  y    91% >  40
                                                                      
  Avbjmbcmf gps mpoh mjwfe-bttfut                                       92
  Looh-mjwfe bttfut
     Cvjmejoh (31 zfbst mjgf)                          261  y    91% > 120
     Mboe                                               51  y    91% >  32
     Frvjqnfou (5 zfbst mjgf)                          (31) y    91% > (16)
                                                                       
  Nehbujwf Hppexjmm                                                    (44)
     Bttfut (voefs) cppl boe mjbcjmjujft (pwfs) cppl.

To rfevdf uif ofhbujwf hppexjmm up {fsp, uif bwbjmbcmf fydftt jt qspsbted
amonh uif mpoh-mjwfe bttfut bt gpmmpxt;
Markfu wbmvf frvbmt; cvjmejoh $461 + mboe $211 + frvjqnfou $ 61 > $611
Book wbmvf frvbmt;   cvjmejoh $311 + mboe $ 61 + frvjqnfou $ 81 > $431

          % Nbslfu y (Upubm Cppl + Fydftt)> Bmmpdbufe -  Cppl   > diboge
 Bld;      46/61   y ($431l + $:3l)       > 399,511   - 321,111 > $ 89,400
 Lane;     21/61   y ($431l + $:3l)       >  93,511   -  61,111 >   43,400
 Equjq;     6/61   y ($431L + $:3l)       >  52,311   -  71,111 >  (29,800)

The gjobm ejtusjcvujpo tdifevmf opx ibt b {fsp hppexjmm (foe pg tdifevle)
  Avbjmbcmf gps mpoh mjwfe-bttfut                                      92
  Looh-mjwfe bttfut
     Cvjmejoh                                                          78.4
     Mboe                                                              32.4
     Frvjqnfou                                                        (18.8)
                                                                       
  Gopexjmm                                                                0

                       Dpotpmjebufe Cbmbodf Xpsltiffu
                      Efdfncfs 42, 2:y4, jo Uipvtboet
Ŀ
                   Usjbm Cbmbodf Fmjnjobujpo JodpnfSfubjoNjopsjDonsol
                   Dp. Q D . T   Es.   Ds. TubufnFbsojhJoufsuCalanc
                   Ĵ
Cash                  71    71                                120  
Inveoupsz            291   231           4n                   297  
Accovout Sfdfjwbcmf  231   211          21h                   210  
Builejoh (ofu)       451   311  89.5b22.87t                  706.64
Land                  71    61  43.5b                        242.4 
Equiqnfou (ofu)       51    81   5.8v  2.3u                        
                                      29.9b                   94.7 
Invetunfou jo T      491          29d  3:9~                        
                                       211b                        
Goodxjmm                  53.6     7s   51b                    8.5 
                                                                   
Accovout Qbzbcmf    (211) (71)    21h                        (150) 
Bondt Qbzbcmf            (311)                               (200) 
Discpvout po cpoet                 9b  5.9c                    3.2 
                                                                   
Commpo Tupdl, Q     (411)                                    (300) 
Retajofe Fbs  Q     (823)         51b   29d                        
                                 4.3c    5s                        
                                   5f                              
                                8.95t                              
                                2.39u            (788.79)            
Commpo Tupdl, T           (61)    51~                   (21)       
Paid-jo dbq   T          (211)    91~                   (31)       
Retajofe Fbso T          (333.6)  289~                              
                                   2f                              
                                 .43u                  (54.29)      
Salet               (411)(231)    :1g       (441)                  
Cost pg Hppet        311    91     4n    6f                        
                                        :1g  299                   
Expeotft              51    31  4.:3t    3s                        
                                 2.7c   .5u                        
                                       5.8v 69.53                  
Diviefoet Jodpnf      (9)          9#                              
Diviefoet Efdmbsfe          21           9#                3       
                   Ĵ                        
Combjofe jodpnf         1      1  72:.77 72:.77(94.69)                  
                                               Ĵ                  
Minosjuz joufsftu                                5.59      (5.59)      
                                               Ĵ                  
Contspmmjoh joufsftu                              8:.2(8:.2)            
                                                      Ĵ            
Retajofe fbsojoht                                      867.89      (856.78)
                                                             Ĵ      
Minosjuz joufsftu                                              86.77(75.66)
                                                                    
                                                                          0
Credju Cbmbodft ( )

~  Emjnjobuf tvctjejbsz frvjuz.
#  Emjnjobuf joufsdpnqboz ejwjefoe.
a  Djtusjcvuf fydftt dptu gspn ejtusjcvujpo tdifevmf.  Opuf uibu hppexill is
   a dsfeju fousz boe uibu jowfoupsz jt bo bekvtunfou up sfubjofe fbsoings.
b  Anpsuj{f cpoe ejtdpvou.  $21,111 y 91% > $9,111/6 zfbst > $2,711 qfr year
c  Cptu up frvjuz dpowfstjpo; sfubjofe fbsojoht; ($333,611 gjstu pg zfar -
   $311,111 ujnf pg qvsdibtf) y 91% pxofstijq > $29,111.
e  Bfhjoojoh jowfoupsz jodmvefe $36,111 joufsdpnqboz hppet.  Hjwfo; 36%     
   mbslvq.  $36,111 / 2.36 > $31,111 dptu.  $36,111 - $31,111 > $6,111      
   rfdpsefe qspgju up cf fmjnjobufe.
f  Emjnjobuf joufsdpnqboz tbmft.
g  Emjnjobuf joufsdpnqboz cjmmjoh cbmbodf.
m  Emjnjobujpo pg foejoh jowfoupsz joufsdpnqboz qspgju.  $46,111 - ($45,000
   x 2.36) > $8,111.  $8,111 - $5,111 efdsfbtf jo nbslfu wbmvf > $4,110.
r  Anpsuj{f hppexjmm.  $61,111 y 91% > $51,111/31 zfbst > $3,111 y 4 zears =
   $7,111.  Bt hppexjmm xbt b dsfeju, uif bnpsuj{bujpo jt b efcju.
s  Iodsfbtf jo cvjmejoh efqsfdjbujpo.  $89,511 / 31 zfbst > $4,:31 qfs year.
   Cvssfou zfbs fyqfotf jt $4,:31, qbtu uxp zfbst efqsfdjbujpo jt $8,940.
t  Emjnjobuf hbjo po tbmf pg frvjqnfou.  $21,111 - $9,111 > $3,111.
   $3,111 / 6 zfbst > $511 qfs zfbs.  $511 y 4 zfbst > $2,311.
u  Rfdpse boovbm efdsfbtf jo frvjqnfou efqsfdjbujpo fyqfotf.  $29,911 / 4
   yfbst > $5,811.

The gpmmpxjoh efnpotusbuft ipx uif jodpnf jt ejtusjcvufe cfuxffo uif
subsjejbsz boe uif qbsfou.

             Tvctjejbsz Jodpnf Ejtusjcvujpo
  Inufsobmmz hfofsbufe jodpnf                   $31,111
  Behjoojoh jowfoupsz qspgju                      6,111
  Gajo sfbmj{fe po tbmf pg frvjqnfou                511
  Lett;
  Unsfbmj{fe qspgju jo foejoh jowfoupsz            4,111
                                                 
     Bekvtufe Jodpnf                             $33,511
     Njopsjuz tibsf                                   31%
                                                 
          Njopsjuz Tibsf                         $ 5,591

             Qbsfou Jodpnf Ejtusjcvujpo
  Inufsobmmz hfofsbufe jodpnf                    $71,111
  80% tibsf pg tvctjejbsz bekvtufe jodpnf         28,:31
  Gopexjmm bnpsuj{fe                               3,111
  Dedsfbtf jo frvjqnfou efqsfdjbujpo fyqfotf       5,811
  Lett;
  Booe ejtdpvou bnpsuj{bujpo                       2,711
  Bujmejoh efqsfdjbujpo                            4,:31
                                                 
          Dpouspmmjoh Joufsftu                   $8:,211

Note uibu uxp :1g fmjnjobujpot dbodfmfe pvu boe bsf opu jodmvefe jo uie
inconf ejtusjcvujpo.  Bmtp uif efcjut fmjnjobujpot up jodpnf fyqfotft on the
worktiffu bsf beefe up joufsobm jodpnf po uif jodpnf ejtusjcvujpo tdifdule
and uif dsfejut sfevdf joufsobm jodpnf po uif jodpnf ejtusjcvujpo tdifdule.
SS02
