-----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, BJN+8ON31ogDfUbKHzJtCPtoreuOjfgRXy6Uj+tX/hQwxRiYtuiAilcBD93XGuR/ VphbMq/afVB050rbT5kH0A== 0001061095-99-000038.txt : 19990607 0001061095-99-000038.hdr.sgml : 19990607 ACCESSION NUMBER: 0001061095-99-000038 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971231 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: 99640397 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, 1997 TMP INLAND EMPIRE VI, LTD A California Limited Partnership The previously filed 10-Q for the quarter ended December 31, 1997 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-K/A Quarterly Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 for the Period ended December 31, 1997 Commission File No. 0-19933 TMP INLAND EMPIRE VI, LTD. A CALIFORNIA LIMITED PARTNERSHIP (Exact name of registrant as specified in its charter) CALIFORNIA 33-0341829 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 801 North 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) ---------------------- Indicate by check mark whether Registrant has [1] 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 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, 1997 and 1996 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 11-14 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, 1997 and 1996 and the related statements of operations, partners' capital, and cash flows for the years ended December 31, 1997, 1996, and 1995. 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, 1997 and 1996 and the results of its operations and its cash flows for the years ended December 31, 1997, 1996, and 1995, 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 26, 1998 except for Note 1 as to which the date is April 8, 1999
TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Balance Sheets December 31, 1997 and 1996 Assets ------ 1997 1996 ---- ---- Cash $ 126,159 $ 81,499 Note Receivable 0 223,516 Prepaid Interest 43,495 0 Investment in Unimproved Land (Note 1) (Schedule 1) at lower of cost or fair value 5,995,905 5,500,000 ------------- -------------- Total Assets $ 6,165,559 $ 5,805,015 ============= ============== Liabilities and Partners' Capital --------------------------------- Due to Affiliates $ 956 $ 569 Property Tax Payable 39,151 0 Deferred Income 0 456 Franchise Tax Payable 800 800 Notes Payable 362,719 0 ------------- -------------- Total Liabilities 403,626 1,825 ------------- -------------- Partners' Capital (Deficit) General Partners (45,064) (44,651) Limited Partners; 11,500 Equity Units Authorized and Outstanding 5,806,997 5,847,841 ------------- -------------- Total Partners' Capital 5,761,933 5,803,190 ------------- -------------- Total Liabilities and Partners' Capital $ 6,165,559 $ 5,805,015 ========= ==============
See Accompanying Notes -2-
TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Statements of Operations For the Years Ended December 31, 1997, 1996 and 1995 1997 1996 1995 ---- ---- ---- Income - ------ Sale of Property $ 0 $ 0 $1,121,703 Cost of Sale 0 0 (1,508,096) --------- --------- --------- Loss on Sale of Property 0 0 (386,393) Rental Income 0 0 2,100 Interest Income 3,018 13,855 4,600 Other Income 456 0 456 --------- --------- --------- Total Income 3,474 13,855 (379,237) --------- --------- --------- Expenses - -------- Decline in fair value of unimproved land 0 4,013,087 0 Prior year sale expense 0 3,200 0 Amortization 0 5,915 6,799 Accounting 6,224 0 0 General Partner Fees 19,774 0 0 Expense Reimbursements 17,933 0 0 Rental Expense 0 0 1,987 --------- --------- --------- Total Expense 43,931 4,022,202 8,786 --------- --------- --------- Loss Before Income Taxes (40,457) (4,008,347) (388,023) State Franchise Tax 800 800 800 --------- ---------- --------- Net Loss $ (41,257) $(4,009,147) $ (388,823) ========= ========== =========== Allocation of Net Loss General Partners, in the Aggregate $ (413) $ (40,091) $ (3,888) ========= =========== ========= Limited Partners, in the Aggregate $ (40,844) $(3,969,056) $ (384,935) ========= =========== ========= Limited Partners, per Equity Unit $ (3.55) $ (345.14) $ (33.47) ========= =========== =========
See Accompanying Notes -3-
TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Statements of Partners' Capital For the Years Ended December 31, 1997, 1996 and 1995 General Limited Partners Partners Total 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 Net Loss for 1997 (413) (40,844) (41,257) --------- ------------- ------------- Partners' Capital (Deficit) December 31, 1997 $ (45,064) $ 5,806,997 $ 5,761,933 ========= ============= =============
See Accompanying Notes -4-
TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Statements of Cash Flows For the Years Ended December 31, 1997, 1996 and 1995 1997 1996 1995 ---- ---- ---- Cash Flows from Operating Activities Net Loss $ (41,257) $(4,009,147) $ (388,823) Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: Increase in Carrying Costs (106,632) (85,184) (181,634) Loss on Sale of Properties 0 0 386,393 Amortization 0 5,915 6,799 Increase or (Decrease) in Due to Affiliates 387 469 (636) (Increase) or Decrease in Other Receivables 0 180 (180) Decrease in Interest Payable 0 0 (2,333) Increase in Prepaid Interest (43,495) 0 0 Increase or (Decrease) in Property Tax Payable 39,151 0 (57,124) Increase or (Decrease) in Deferred Income (456) (1,825) 2,281 Decline in Fair Value of Unimproved Land 0 4,013,087 0 --------- ---------- ---------- Net Cash Used in Operating Activities (152,302) (76,505) (235,257) --------- ---------- ---------- Cash Flows from Investing Activities Receipt of Promissory Note 0 0 (248,000) Land Acquisition and Development Costs (386,554) 0 0 Note Receivable Principal Reduction 223,516 4,093 20,391 Proceeds from Sale of Property 0 0 1,121,703 -------- -------- --------- Net Cash Provided by (Used In) Investing Activities (163,038) 4,093 894,094 -------- -------- ---------- Cash Flows from Financing Activities Distributions to Partners 0 0 (232,323) Borrowings through Notes Payable 410,000 0 0 Reduction in Note Payable (50,000) 0 (350,000) -------- -------- ---------- Net Cash Provided by (Used In) Financing Activities 360,000 0 (582,323) --------- -------- ---------- Net Increase or (Decrease) in Cash 44,660 (72,412) 76,514 Cash, Beginning 81,499 153,911 77,397 --------- -------- ---------- Cash, Ending $ 126,159 $ 81,499 $ 153,911 ========= ======== ======== Supplemental Disclosures of Cash Flow Information - -------------------------- Income Tax Paid $ 800 $ 800 $ 800 ======== ======== ======== Interest Paid $ 84,469 $ 0 $ 27,300 ======== ======== ======== Other Disclosures The Partnership did not enter into any non-cash investing or financing activities during the years ended December 31, 1997, 1996, or 1995. During the year ended December 31, 1997 land was acquired on a note foreclosure for $223,516 (Note 6).
See Accompanying Notes -5- TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Notes to Financial Statements December 31, 1997, 1996 and 1995 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 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 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 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, 1997 and 1996 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, 1997, 1996 and 1995 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 1997 or 1996. -7- TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Notes to Financial Statements December 31, 1997, 1996 and 1995 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, $19,774 and $22,663 in partnership management fees to the General Partners during the years ended December 31, 1997, 1996 and 1995, respectively. The Partnership was also charged $14,810, $11,126 and $11,247 during the years ended December 31, 1997, 1996 and 1995, respectively, by the General Partners and an affiliated company of the General Partners for office, secretarial and advertising expenses. At December 31, 1997 and 1996 the Partnership had a payable of $956 and $569, 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. As of May 28, 1997, the note had defaulted and the property had been foreclosed. Therefore, this note receivable balance at December 31, 1997 is $0. Note 7 - Note payable The Partnership entered into a loan agreement with an outside party who provided engineering services for the partnership. The total loan amount is $110,000. The principal amount is payable in full upon sale of the land parcels that engineering services were performed on or upon recordation of the final tract maps for the same parcels and is secured by those parcels. The loans are guaranteed by the three General Partners of TMP Properties and by TMP Properties. The Partnership entered into a loan agreement with an outside party by offering parcels owned by the partnership as collateral. The total loan amount is $250,000. This note matures in July of 1999. -8- TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Notes to Financial Statements December 31, 1997, 1996 and 1995 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 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. 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 apparent slow recovery (see Note 11). -9- TMP INLAND EMPIRE VI, LTD. (A California Limited Partnership) Notes to Financial Statements December 31, 1997, 1996 and 1995 Note 11 - Restatement and reissuance of 1996 and 1997 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 as of December 31, 1996. Therefore, the 1996 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. The 1997 financial statements originally issued with the auditor's re- port dated January 28, 1998 reported $1,948,003 or income due to appreciation in fair value of land. Current clarification reveals that SFAS 121 does not provide for recording appreciation in fair value of a real estate asset. Therefore, these financial statements have been restated to remove the appreciation in fair value of land. In addition, certain carrying costs of land that were previously capitalized have been restated as current expenses in the amount of $43,811 at December 31, 1997. -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, 1997 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 $181,235 $ 1,742,212 -0- n/a 06/21/90 n/a Unimproved land Rancho Cal., CA -0- 1,744,082 0 168,223 1,912,305 -0- n/a 07/12/90 n/a Unimproved land - Palm Desert, CA -0- 3,534,200 0 371,434 3,905,634 -0- n/a 06/15/90 n/a Unimproved land - Perris, CA -0- 171,386 0 22,119 193,505 -0- n/a 01/30/90 n/a Unimproved land - Perris, CA -0- 246,869 0 28,227 275,096 -0- n/a 07/09/90 n/a Unimproved land - Perris, CA -0- 159,823 0 12,490 172,313 -0- n/a 04/16/90 n/a Unimproved land - Perris, CA -0- 237,466 0 24,788 262,254 -0- n/a 10/31/90 n/a Unimproved land - Elsinore, CA -0- 442,302 177 46,792 489,271 -0- n/a 09/19/90 n/a Unimproved land Elsinore, CA -0- 97,000 4,580 9,831 111,411 -0- n/a 08/31/90 n/a Unimproved land - Adelanto, CA -0- 386,554 0 18,360 404,914 -0- n/a 07/23/97 n/a Unimproved land - Adelanto, CA -0- 477,783 0 62,294 540,077 -0- n/a 05/25/90 n/a --- --------- ----- ------- ---------- --- $-0- $9,058,442 $4,757 $945,793 $10,008,992 -0- ==== ========= ===== ======= ========== === Less: Valuation Allowance: $ 4,013,087 ----------- Net Carrying Value: $ 5,995,905 =========== Reconciliation of carrying amount Beginning balance $5,500,000 Additions Initial Costs 386,554 Carrying Costs 109,351 Total Additions 495,905 --------- Ending balance $5,995,905 =========
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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, 1996 - ------------------------------------------------------------------------------------------------------------------------------------ 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 ===========
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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, 1995 - ------------------------------------------------------------------------------------------------------------------------------------ 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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