-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GmvWjuzYiJ65oM91GSGawjgDVOgj+w25Y/WuUAv6vK3LR7YEqw6chKjL9uVhMvrr xdIgkEvqQrg6upOUiWwmUQ== 0001061095-99-000034.txt : 19990607 0001061095-99-000034.hdr.sgml : 19990607 ACCESSION NUMBER: 0001061095-99-000034 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19990604 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TMP INLAND EMPIRE VI LTD CENTRAL INDEX KEY: 0000885046 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 330386437 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K/A SEC ACT: SEC FILE NUMBER: 000-19940 FILM NUMBER: 99640366 BUSINESS ADDRESS: STREET 1: 801 N PARKCENTER DR STREET 2: STE 235 CITY: SANTA ANA STATE: CA ZIP: 92705 BUSINESS PHONE: 7148365503 10-K/A 1 AMENDED 10-K FOR PERIOD ENDING DECEMBER 31, 1996 TMP INLAND EMPIRE VI, LTD A California Limited Partnership The previously filed 10-K for the year ended December 31, 1996 is being amended with restated audited financial statements to reflect the addition of a two million dollar ($2,000,000) valuation reserve as of December 31, 1996 with respect to certain land costs. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------- FORM 10-KA [X] Annual report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 (Fee Required). For the fiscal year ended December 31, 1996 [ ] Transition report pursuant to Section 13 or 15 (d) of the Securities Exchange act of 1934 (No Fee Required). For the transition from _________to____________ ----------------- COMMISSION FILE NO. 0-19940 TMP INLAND EMPIRE VI, LTD., A CALIFORNIA LIMITED PARTNERSHIP (Exact name of registrant as specified in its charter) CALIFORNIA 33-0386437 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 801 N. PARKCENTER DRIVE, SUITE 235 92705 SANTA ANA, CALIFORNIA (Zip Code) (Address of principal executive office) (714) 836-5503 (Registrant's telephone number, including area code) Securities to be registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which to be so registered each class is to be registered - ------------------- ------------------------------ N/A N/A Securities to be registered pursuant to Section 12 (g) of the Act: UNITS OF LIMITED PARTNERSHIP INTEREST - ------------------------------------- (Title of Class) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days Yes [X] No [ ] TMP INLAND EMPIRE VI, LTD (A California Limited Partnership) Financial Statements December 31, 1996 and 1995 Table of Contents Report of Independent Auditors 1 Balance Sheets 2 Statements of Operations 3 Statements of Partners' Capital 4 Statements of Cash Flows 5 Notes to Financial Statements 6-10 Supplementary Information 11-12 Independent Auditor's Report ---------------------------- To the Partners TMP Inland Empire VI, Ltd. (A California Limited Partnership) We have audited the accompanying balance sheets of TMP Inland Empire VI, Ltd. (A California Limited Partnership) as of December 31, 1996 and 1995 and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of TMP Inland Empire VI, Ltd. (A California Limited Partnership) as of December 31, 1996 and 1995 and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information contained in Schedule I is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is stated fairly in all material respects in relation to the basic financial statements taken as a whole. Balser, Horowitz, Frank & Wakeling BALSER, HOROWITZ, FRANK & WAKELING An Accountancy Corporation Santa Ana, California January 20, 1997 except for Note 11 as to which the date is April 8, 1999
TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Balance Sheets December 31, 1996 and 1995 Assets ------ 1996 1995 ---- ---- Cash $ 81,499 $ 153,911 Note Receivable 223,516 227,609 Other Receivables 0 180 Organization Costs (net of accumulated amortization of $33,964 in 1996 and $28,049 in 1995) 0 5,915 Investment in Unimproved Land (Note 1) (Schedule I) at lower of cost or fair value 5,500,000 9,427,903 ---------- ------------- Total Assets $5,805,015 $ 9,815,518 ========== ============= Liabilities and Partners' Capital --------------------------------- Due to Affiliates $ 569 $ 100 Deferred Income 456 2,281 Franchise Tax Payable 800 800 --------- ----------- Total Liabilities 1,825 3,181 --------- ----------- Partners' Capital (Deficit) General Partners (44,651) (4,560) Limited Partners; 11,500 Equity Units Authorized and Outstanding 5,847,841 9,816,897 ----------- ----------- Total Partners' Capital 5,803,190 9,812,337 ----------- ----------- Total Liabilities and Partners' Capital $5,805,015 $ 9,815,518 ========== ===========
See Accompanying Notes -2-
TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Statements of Operations For the Years Ended December 31, 1996, 1995 and 1994 1996 1995 1994 ---- ---- ---- Income Sale of Property $ 0 $ 1,121,703 $ 0 Cost of Sale 0 (1,508,096) 0 --------- ------------ ------------ Loss on Sale of Property 0 (386,393) 0 Rental Income 0 2,100 12,620 Interest Income 13,855 4,600 1,103 Other Income 0 456 0 --------- ------------ ---------- Total Income 13,855 (379,237) 13,723 --------- ------------- ---------- Expenses Decline in fair value of unimproved land 4,013,087 0 0 Prior year sale expense 3,200 0 0 Amortization 5,915 6,799 6,800 Rental Expense 0 1,987 2,397 ---------- ---------- ---------- Total Expense 4,022,202 8,786 9,197 ---------- ----------- ---------- Profit (Loss) Before Income Taxes (4,008,347) (388,023) 4,526 State Franchise Tax 800 800 800 ---------- --------- -------- Net Profit (Loss) $(4,009,147) $ (388,823) $ 3,726 =========== =========== ========== Allocation of Net Profit (Loss) General Partners, in the Aggregate $ (40,091) $ (3,888) $ 37 ============ ============ ========== Limited Partners, in the Aggregate $ (3,969,056) $ (384,935) $ 3,689 ============ =========== ========== Limited Partners, per Equity Unit $ (345.14) $ (33.47) $ .32 ============ =========== ===========
See Accompanying Notes -3-
TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Statements of Partners' Capital For the Years Ended December 31, 1996, 1995 and 1994 General Limited Partners Partners Total Partners' Capital December 31, 1993 $ 1,614 $ 10,428,143 $ 10,429,757 Net Income for 1994 37 3,689 3,726 -------- ----------- ----------- Partner's Capital December 31, 1994 1,651 10,431,832 10,433,483 Distributions for 1995 (2,323) (230,000) (232,323) Net Loss for 1995 (3,888) (384,935) (388,823) -------- ----------- ----------- Partners' Capital (Deficit) December 31, 1995 (4,560) 9,816,897 9,812,337 Net Loss for 1996 (40,091) (3,969,056) (4,009,147) -------- ----------- ----------- Partners' Capital (Deficit) December 31, 1996 $(44,651) $ 5,847,841 $ 5,803,190 ======== =========== ===========
See Accompanying Notes -4-
TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Statements of Cash Flows For the Years Ended December 31, 1996, 1995 and 1994 1996 1995 1994 ---- ---- ---- Cash Flows from Operating Activities Net Income or (Loss) $(4,009,147) $ (388,823) $ 3,726 Adjustments to Reconcile Net Income or (Loss) to Net Cash Used in Operating Activities: Increase in Carrying Costs (85,184) (181,634) (183,656) Loss on Sale of Properties 0 386,393 0 Amortization 5,915 6,799 6,800 Decline in Fair Value of Unimproved Land 4,013,087 0 0 Increase or (Decrease) in Due to Affiliates 469 (636) 636 (Increase) or Decrease in Other Receivables 180 (180) 0 Increase or (Decrease) in Interest Payable 0 (2,333) 2,333 Increase or (Decrease) in Property Tax Payable 0 (57,124) 57,124 Increase or (Decrease) in Deferred Income (1,825) 2,281 0 ------------- --------- --------- Net Cash Used in Operating Activities (76,505) (235,257) (113,037) ------------- ---------- ---------- Cash Flows from Investing Activities Receipt of Promissory Note 0 (248,000) 0 Note Receivable Principal Reduction 4,093 20,391 0 Proceeds from Sale of Property 0 1,121,703 0 ----------- ---------- --------- Net Cash Provided by Investing Activities 4,093 894,094 0 ------------ ---------- --------- Cash Flows from Financing Activities Distributions to Partners 0 (232,323) 0 Reduction of Line-of-credit 0 0 (161,729) Borrowings through Note Payable 0 0 350,000 Reduction in Note Payable 0 (350,000) 0 ----------- ---------- --------- Net Cash Provided by (Used in) Financing Activities 0 (582,323) 188,271 ----------- ---------- --------- Net Increase or (Decrease) in Cash (72,412) 76,514 75,234 Cash, Beginning 153,911 77,397 2,163 ----------- ---------- --------- Cash, Ending $ 81,499 $ 153,911 $ 77,397 =========== ========== ========= Supplemental Disclosures of Cash Flow Information Income Tax Paid $ 800 $ 800 $ 800 =========== ========= ========= Interest Paid $ 0 $ 27,300 $ 23,568 =========== ========= ========= Other Disclosures The Partnership had non-cash investing activities (see Note 5), but it did not have any non-cash financing activities. It did not have any short-term highly liquid investments during the years ended December 31, 1996, 1995, or 1994.
See Accompanying Notes -5- TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Notes to Financial Statements December 31, 1996, 1995 and 1994 Note 1 - Summary of significant accounting policies Accounting Method - The Partnership's policy is to prepare its financial statements on the accrual basis of accounting. Organization Costs - Organization costs include expenses incurred in the formation of the Partnership that have been capitalized and that are being amortized over a period of 40 years prior to 1992 and 5 years beginning in 1992. Investment in Unimproved Land - Investment in unimproved land is stated at the lower of cost or fair value (see Note 10). All costs associated with the acquisition of a property are capitalized. Additionally, the Partnership capitalizes all direct carrying costs (such as interest expense and property taxes.) These costs are added to the cost of the properties and are deducted from the sales prices to determine gains, if any, when the properties are sold. Syndication Costs -Syndication costs (such as commissions, printing, and legal fees) totaling $1,231,617 represent costs incurred to raise capital and, accordingly, are recorded as a reduction in partners' capital (see Note 3). Income Taxes - The entity is treated as a partnership for income tax purposes and any income or loss is passed through and taxable to the individual partners. Accordingly, there is no provision for federal income taxes in the accompanying financial statements. However, the minimum California Franchise tax due by the Partnership at December 31, 1996 and 1995 is $800. Cash and Cash Equivalents - For purposes of the statements of cash flows, the Partnership considers all cash in banks and all highly liquid investments with a maturity of three months or less to be cash equivalents. Estimates - In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from these estimates. Concentration - All unimproved land parcels held for investment are located in the Inland Empire area of Southern California. The eventual sales price of all parcels is highly dependent on the real estate market condition. The Partnership attempts to mitigate any potential risk by monitoring the market condition and holding the land parcels until the real estate market recovers. -6- TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Notes to Financial Statements December 31, 1996, 1995 and 1994 Note 2 - Organization of the Partnership On March 20, 1990, the Partnership was formed with TMP Properties (A California General Partnership) and TMP Investments, Inc. (A California Corporation) as the General Partners. The partners of TMP Properties are William O. Passo, Anthony W. Thompson and Scott E. McDaniel. William O. Passo and Anthony W. Thompson were the shareholders of TMP Investments, Inc. until October 1, 1995, when they sold their shares to TMP Group, Inc. and then became the shareholders of TMP Group, Inc. The Partnership originally acquired eleven separate parcels of unimproved real property in Riverside and San Bernardino Counties, California. The properties are to be held for investment, appreciation, and ultimate sale and/or improvement of all or a portion thereof, either alone or in conjunction with a joint venture partner. During 1995, the Partnership sold one parcel and a portion of another parcel. The partnership agreement provides for two types of investments: Individual Retirement Accounts (IRA) and others. The IRA minimum purchase requirement was $2,000 and all others were a minimum purchase requirement of $5,000. The maximum liability of the limited partners is the amount of their capital contribution. Note 3 -Partners' contributions The Partnership offered for sale 11,500 units at $1,000 each to qualified investors. As of December 31, 1990, all 11,500 units had been sold for total limited partner contributions of $11,500,000. There have been no contributions made by the General Partners. As described in Note 1, syndication costs have been recorded as a reduction in partners' capital. Note 4 - Allocation of profits, losses and cash distributions Profits, losses and cash distributions are allocated 99% to the limited partners and 1% to the General Partners until the limited partners have received an amount equal to their capital contributions plus a cumulative, non-compounded return of 6% per annum on their adjusted capital contributions. At that point, the limited partners are allocated 83.5% and the General Partners 16.5% of profits, losses and cash distributions. In 1995, a distribution of $232,323 was made from the sale of the land parcels. There were no distributions in 1996 or 1994. -7- TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Notes to Financial Statements December 31, 1996, 1995 and 1994 Note 5 - Related party transactions Syndication costs (see Note 1) netted against partners' capital contributions include $1,150,000 in selling commissions paid in prior years to TMP Capital Corp. for the sale of partnership units of which a portion was then paid to unrelated registered representatives. William O. Passo and Anthony W. Thompson were the shareholders of TMP Capital Corp. until October 1, 1995, when they sold their shares to TMP Group, Inc. Investment in unimproved land includes acquisition fees of $650,000 paid in prior years to TMP Properties and TMP Investments, Inc., the General Partners, for services rendered in connection with the acquisition of the properties. The Partnership paid $19,774, $22,663 and $22,663 in partnership management fees to the General Partners during the years ended December 31, 1996, 1995 and 1994, respectively. The Partnership was also charged $11,126, $11,247 and $8,641 during the years ended December 31, 1996, 1995 and 1994, respectively, by the General Partners and an affiliated company of the General Partners for office, secretarial and advertising expenses. At December 31, 1996 and 1995 the Partnership had a payable of $569 and $100, respectively, to the General Partners and the affiliated company. Note 6 - Note Receivable During August 1995 the Partnership sold a parcel of land and took back a note for $248,000. The note was secured by a deed of trust and was due on August 29, 2002. Interest was 7% per annum, and the note provided for monthly payments of $6,500 for the months of September, 1995 through December, 1995, and $2,000 per month starting January 1, 1996. The note is in default as of December 31, 1996. The Partnership is in the process of foreclosing on the collateral property. Note 7 - Note payable During 1994 the Partnership borrowed $350,000 from a private party. The note was secured by a first trust deed on property owned by the Partnership and paid 12% per annum interest only in monthly installments of $3,500. In 1995, the Partnership sold the land parcel and the cash proceeds were used to pay off the note. -8- TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Notes to Financial Statements December 31, 1996, 1995 and 1994 Note 8 - Contingency The Partnership entered into a loan agreement with an outside party who provided engineering services for a land parcel. The loan of $108,408 was secured by a deed of trust and accrued interest at 10% per annum. The interest was payable on or before March 1, 1996. The principal amount was payable upon sale of the land. In August 1995, the Partnership sold the land parcel and the new owner assumed the loan. However, the loan was guaranteed by the Partnership, the three General Partners of TMP Properties, and TMP Properties, a General Partnership. During 1996, the new owner defaulted on the loan. Presently, the Partnership is in the process of foreclosing on the property. Negotiations are underway where the Partnership will issue a note payable, secured by a first deed of trust on the property, to the outside party, upon receipt of the title of the property. Note 9 - Sale and related cost of property sold
The following summarizes property sold in 1995: Palm Desert and Adelanto ------------ Sale price $1,121,703 ---------- Cost of parcel 1,212,417 Development costs 31,426 Acquisition fees 88,374 Carrying costs 125,161 Closing costs and other 50,718 ------ Total cost 1,508,096 --------- Loss on sale of property $ (386,393) ==========
Note 10 - Decline in the fair value of investment in unimproved land As of December 31, 1996, the total carrying amount of the investment in unimproved land was reduced by $4,013,087 (as restated). This reduction (through a valuation reserve) represents the decline in fair market value of the properties, as determined by the General Partners, and is due mainly to the downturn in Southern California's real estate market and slow recovery (See Note 11). -9- TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Notes to Financial Statements December 31, 1996, 1995 and 1994 Notes 11 - Restatement and reissuance of 1996 financial statements In compliance with Statement of Financial Accounting Standards No. 121 Accounting for the Impairment of Long-Lived Assets to Be Disposed Of (SFAS 121), the 1996 financial statements reported an expense for the decline in fair market value of unimproved land of $2,013,087. It has been determined through additional evaluation by management that certain real estate assets required an additional valuation reserve of $2,000,000 at December 31, 1996. Therefore, these financial statements were restated on April 8, 1999 to reflect the value of the investment in unimproved land at the lower of cost or market at that date. -10- SUPPLEMENTAL INFORMATION
TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Schedule I - Real Estate and Accumulated Depreciation (Schedule XI, Rule 12-28, for SEC Reporting Purposes For the Year Ended December 31, 1996 COLUMN A B C D E F G H - ------------------------------------------------------------------------------------------------------------------------------------ COSTS CAPITALIZED SUBSEQUENT Gross TO ACQUISITION amount at Estimated ---------------------- Initial Carrying which Carried Accumulated Date of Date Depreciable Description of Assets Encumbrances Cost Improvement Cost at Year-End Depreciation Construction Acquired Life - ------------------------------------------------------------------------------------------------------------------------------------ Unimproved land - San Jacinto, CA $-0- $1,560,977 $ 0 $163,819 $1,724,796 -0- n/a 06/21/90 n/a Unimproved land - Rancho Cal., CA -0- 1,744,082 0 151,235 1,895,317 -0- n/a 07/12/90 n/a Unimproved land - Palm Desert, CA -0- 3,534,200 0 333,862 3,868,062 -0- n/a 06/15/90 n/a Unimproved land - Perris, CA -0- 171,386 0 19,614 191,000 -0- n/a 01/30/90 n/a Unimproved land - Perris, CA -0- 246,869 0 25,546 272,415 -0- n/a 07/09/90 n/a Unimproved land - Perris, CA -0- 159,823 0 11,858 171,681 -0- n/a 04/16/90 n/a Unimproved land - Perris, CA -0- 237,466 0 22,577 260,043 -0- n/a 10/31/90 n/a Unimproved land - Elsinore, CA -0- 442,302 177 43,217 485,696 -0- n/a 09/19/90 n/a Unimproved land - Elsinore, CA -0- 97,000 4,580 8,907 110,487 -0- n/a 08/31/90 n/a Unimproved land - Adelanto, CA -0- 477,783 0 55,807 533,590 -0- n/a 05/25/90 n/a --- --------- ------- ------- ---------- --- $-0- $8,671,888 $ 4,757 $836,442 $ 9,513,087 -0- ==== ========= ===== ======= ========= === Reconciliation of carrying amount Beginning balance $ 9,427,903 Additions Initial Costs 0 Carrying Costs 85,184 Total Additions 85,184 ------ 9,513,087 Allowance for decline in Value of unimproved land (4,013,087) Ending balance $ 5,500,000 ========== -11- TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Schedule I - Real Estate and Accumulated Depreciation (Schedule XI, Rule 12-28, for SEC Reporting Purposes For the Year Ended December 31, 1995 COLUMN A B C D E F G H - ------------------------------------------------------------------------------------------------------------------------------------ COSTS CAPITALIZED SUBSEQUENT Gross TO ACQUISITION amount at Estimated ---------------------- Initial Carrying which Carried Accumulated Date of Date Depreciable Description of Assets Encumbrances Cost Improvement Cost at Year-End Depreciation Construction Acquired Life - ------------------------------------------------------------------------------------------------------------------------------------ Unimproved land - San Jacinto, CA $-0- $ 1,560,977 $ 0 $ 155,501 $1,716,478 -0- n/a 06/21/90 n/a Unimproved land - Rancho Cal., CA -0- 1,744,082 0 132,684 1,876,766 -0- n/a 07/12/90 n/a Unimproved land - Palm Desert, CA -0- 3,534,200 0 294,142 3,828,342 -0- n/a 06/15/90 n/a Unimproved land - Perris, CA -0- 171,386 0 17,503 188,889 -0- n/a 01/30/90 n/a Unimproved land - Perris, CA -0- 246,869 0 22,227 269,096 -0- n/a 07/09/90 n/a Unimproved land - Perris, CA -0- 159,823 0 10,432 170,255 -0- n/a 04/16/90 n/a Unimproved land - Perris, CA -0- 237,466 0 20,398 257,864 -0- n/a 10/31/90 n/a Unimproved land - Elsinore, CA -0- 442,302 177 39,988 482,467 -0- n/a 09/19/90 n/a Unimproved land - Elsinore, CA -0- 97,000 4,580 8,295 109,875 -0- n/a 08/31/90 n/a Unimproved land - Adelanto, CA -0- 477,783 0 50,088 527,871 -0- n/a 05/25/90 n/a --- ----------- ------- ---------- --------- --- $-0- $ 8,671,888 $ 4,757 $ 751,258 $9,427,903 -0- ==== ========= ===== ======= ========= === Reconciliation of carrying amount Beginning balance $ 10,754,365 Additions Improvements 177 Carrying Costs 181,457 Total Additions 181,634 ------- 10,935,999 Deductions Initial Costs 1,331,996 Improvements 220 Carrying Costs 175,880 ------- Total Deductions 1,508,096 --------- Ending balance $9,427,903 ==========
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TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Schedule I - Real Estate and Accumulated Depreciation (Schedule XI, Rule 12-28, for SEC Reporting Purposes For the Year Ended December 31, 1994 COLUMN A B C D E F G H - ------------------------------------------------------------------------------------------------------------------------------------ COSTS CAPITALIZED SUBSEQUENT Gross TO ACQUISITION amount at Estimated ---------------------- Initial Carrying which Carried Accumulated Date of Date Depreciable Description of Assets Encumbrances Cost Improvement Cost at Year-End Depreciation Construction Acquired Life - ------------------------------------------------------------------------------------------------------------------------------------ Unimproved land - San Jacinto, CA $-0- $ 1,560,977 $ 0 $ 126,692 $ 1,687,669 -0- n/a 06/21/90 n/a Unimproved land - Rancho Cal., CA -0- 1,744,082 0 109,855 1,853,937 -0- n/a 07/12/90 n/a Unimproved land - Palm Desert, CA -0- 4,090,983 0 294,445 4,385,428 -0- n/a 06/15/90 n/a Unimproved land - Perris, CA -0- 171,386 0 14,217 185,603 -0- n/a 01/30/90 n/a Unimproved land - Perris, CA -0- 246,869 0 17,861 264,730 -0- n/a 07/09/90 n/a Unimproved land - Perris, CA -0- 159,823 0 9,349 169,172 -0- n/a 04/16/90 n/a Unimproved land - Perris, CA -0- 237,466 0 18,680 256,146 -0- n/a 10/31/90 n/a Unimproved land - Elsinore, CA -0- 442,302 0 31,404 473,706 -0- n/a 09/19/90 n/a Unimproved land - Elsinore, CA -0- 97,000 4,580 6,960 108,540 -0- n/a 08/31/90 n/a Unimproved land - Adelanto, CA -0- 775,213 220 73,532 848,965 -0- n/a 08/31/90 n/a Unimproved land - Adelanto, CA -0- 477,783 0 42,686 520,469 -0- n/a 05/25/90 n/a --- ----------- ------- ---------- -------- --- $ -0- $ 10,003,884 $ 4,800 $ 745,681 $ 10,754,365 -0- ==== ========== ===== ======= ========== === Reconciliation of carrying amount Beginning balance $ 10,570,709 Additions Improvements 4,800 Carrying Costs 178,856 Total Additions 183,656 ------- Ending balance $10,754,365 ===========
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