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HomeMy WebLinkAbout94-00688 <'f','!.~! "f;~"t" \'., "'1.". ;~' . .:; ~; _r :,,,' ~ ',", z o 1= ~ ::J 0.. :;; o u >< ;:: ''o "\1'JI' '1.111:, '*' . . ;,> ,. . COMMONWEALTH OF PENNSYLVANIA OEPARTMENT OF REVENUE OEPT 280601 HARRISBURG. PA 17128.Q601 REV-1500 INHERITANCE TAX RETURN RESIDENT DECEDENT f- Z W C W U W C DI.C[(llljTSPiAMElLAST FIRST MtD!.IIDDlEltlITIA,ll GARLING H. SCOTT DAT[ or DlATH l!.lM oo.Ve.v1 DAlE OF BIRTHtIJM'()(}''''e~1 07/29/1994 (Ir APPLICABLEI SURvIWlG SPOUSE-S NAME tLAST. FIRST AND MIDDLE IWT1AlI GARLING BARBARA L w ~ ~:!~ u"''' ~&g Li!fs Q. " 00 1 O'k)lnal Return o 4 Lmllled Estato 06 OCCCdent DICd Testale lWcll~,ofW', o 9. LlligaUOn Proceeds ReceIVed o 2 Supplemenlal Relurn o 4a Future Interesl CompromISOIO*clGUI',. 1111111 o 7. Decedenl Maintained a LivIng TrustIAlul:II~, 01 Tru'll o 10. Spousal Poverty Credllll1ll101llflOlbttllftft Il)1 'II/ld '.I-tsl OfJ1CIA.!.'JSEQt<<._ C/ FilE NUMBER 2 ...!..-- 9 .L ..Q...!l_~~_ ~.. H ~_~ """l~ SOCIAL S[CURITY .lUlJ(l[R 1 7 6 - 4 6 - 6 8 0 9 THIS RETURN Musr BE FlLEDIH DUPLICATE WITH UIE REGISTER OF WILLS SOCIAL SECURITY 'IUIJ(l[R 03 RemalntJefReturn IdlltrJGel!l'piVk,l;l)lll o 5 Fedoral Estate Tax Return Reqllllcd _ 8 Tolal Number 01 Safe DePOSIt Bales o 11. EIectlon 10 tal underSec 9113fA)IAb.:IlSchOl !Z w o z o Q. '" W '" '" o u THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO: NAME \ 1\ Lt. \J -t- COMPLETE MAiliNG AOORESS ...,., I \J \Nll\lbt~ Cj'11'1 ,1,lVLl'! rl1(Hc.~ 31~ HirEr" >8lA/\(, -61 ,059.35 x .0L(IS) x .0_(16) X .12 1171 X .15 (181 1191 FIRM NAME I" Awe""', TELEPHONE NUMBER III ') 5 ') 2-- q LI7 6 z o g ::J f- a: <( u w a:: ,. Real ESlale tSchedu~ A) 2. SlOCks and BondslSchedu~ BI 3 Closely Held Corporation. Partnership or Sole.Proprjetorship 4. Mongages 4 Noles Recewable (Schedule 0) 5 Cash. Bank Deposits & MIscellaneous Personal Property (Schedu~ EI 6 Jo;nUy Owned Property tSchedu~ F) (6) o ScpafiUe Billing Requested 7. Inler-Vivos Transfers & MiScellaneous Non.Probate Property (7) (Schedule G or II (II (21 131 (4) (51 8_ Total Groll AIIIllltotal Lines 1.7) 9 Funeral Expenses & AdministraliYe COS15 (Schedule H) (9) 10. Oeb~ of Oecedcnl Mortgage llab,I,oos, 4 liens (Schedule I) 1101 11. TolOl Oeductlon, (Iolallincs 9 4 101 12. Net Value orEII.le (LineS minus Line II) 13 Chantable and GovemmenfalBequestslSec 9113 Trusts for which an election 10 tal has nol been made ISchedule J) 14 Nel Value Subject to Tn (Line 12 minus Une 13) SEE INSTRUCTIONS ON REVERSE SlOE FOR APPLICABLE RATES 15 Amount of Line 14 talable at the spousal tax rale. or transfers under Sec_ 3116 (a)(1.2) 16 Amount of Line 14 tarable allineal rala 17. Amount of Une 14 taxable al sibling rale 18. Amount of Line 14 taxable al collateral rate 19. Tax Due 20.0 (81 (III 1121 113) (14) 1,~ Ivy r 14, 177,5 '7 OFFICIAL USE ONL Y 0.00 -47,954.00 8,500.00 -39.454.00 7,088.00 14,517.35 21,605.35 -61 ,059.35 -61.059.35 -1,831.78 -1.831.78 << Decedent's Com lete Address: f ~; 1 ',j I ' .\ ~1.1; I :;; ~ 301 CHESTNUT CIRCLE . ..T. SHIPPENSBURG SIAlE PA liP 17257 Tax Payments and Credits: . 1 a. DuotPago 1 Line 19) } Cfcdlls;PaymenlS A Spou,al poveny Credll B PoOl P.ymenls C. DI,count (1) -1.83178 Tol.1 CredllS (A. 8. C) (21 tnIOlo,VPen."y if .pplicable 0, Interest E Pen.lly T ol.llnleresVPcn."y ( 0 . E ) (31 "Line 21S gre.ler Ih.n Une 1 . Une 3. enler tho difference. ThiS 15 the OVERPAYMENT. Check box on P.g. 1 L1n. 20 10 roqu..t. refund (4) "Line 1 . Line 3 is g,e.ler Ih.n Une 2. enler Ihe difference. This iSlhe TAX DUE. (5) A. Enler Ihe Inlerest on the t.x due. (SA) 8 Enlcr Ihe 101.1 of Une 5 . SA. This is the BALANCE DUE. (58) Make Check Payable to: REGISTER OF WILLS, AGENT PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN .X. IN THE APPROPRIATE BLOCKS 1. Did decedent m.ke 'Iransler .nd: Yes No .. rel.in the use or Income of Ihe prapeny t,.nslelled; ........................................................................... 0 0 b. rel.in the hghl to design.le who sh.1I use the propeny tr.nslelled 01115 income; ........................................ 0 0 c. retain a reversionary interest; or ...................................................................................................... 0 0 d. receive the promise fOlllfe of eilher p.ymenls. benefits or care? ............................................................. 0 0 2. II de'lh OCCUlled .ffer December 12. 1982. did decedent tr.nsfer property wilhin one ye.r 01 de.lh wilhoul receiving adequ.le consider.tion?.............................................................................................. 0 00 3. Did decedenlown.n 'in llU5I for" or payable upon dealh bank accounl or socuhly at his or her dealh? ................. 0 00 4. Did decedent own an Individual Retirement Accounl. annuity, or olher non.probale prapeny which conl.ins a beneficiary designation? ............................................................................................,.......... 0 0 1.83178 IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. A 17.).41 PA 17~ For dale' 01 dealh on or affer July I, 1994 .nd before January 1. 1995, the tax rale imposed on Ihe net value of tr.nslers to or lor Ihe uso 01 the surviving spouse is 3% In p s. ~91161.)(1.1)(ill. "or d.tes of dealh on or .ffer Janu.ry I, 1995, the tax r.le imposed on Ihe net v.lue ollranslers loor for Ihe use oflhe surviving spouse is 0% [72 P.S. ~91 16,.) (1.11 (il)) The sl.lule does nol e,emOI' tr.nsfor to. surviving spouse !rom t.x, .nd the SI.lulory requirements 101 disclosu,e of .ssels and filing . lax relurn are still,ppicable even if me surviving spouse islhe only beneficiary. For dales 01 dealh on or affer July " 2000: The la' ,.Ie imposed on Ihe nel value of Ir.nslers from a dece.sed child lWenly-one years 01 age or younger al death 1001 for Ihe use of . n.lur.1 p.rent, .n adoptive p.,enl, or a SI,op.,enl 01 the child is 0'4 [72 P.S. ~91 16(a)(1.211. The ,.. r.le Imposed on Ihe nel v.lue oftr.nslers to or for Ihe use oflhe decedent's line.1 benefici.hes is 4.5%. excepl.s noted in 72 P.S. ~9116,1.2) [72 P.S. ~91161.)(111. The la' r.le Imposed on the nel v.lue oll,.nslers to or for Ihe useol the decedenl's siblings is 12% [72 P.S. ~91 16(a)(I.311. A si~ing is defined. under Section 9102..s.n nd'vidual who h.s .lle.sl one parenl in common wilh Ihe decedenl. whelher by blood or adoption. .r.,>o,,,,,..:.. COIJ;IJ;OtM'E.Al TH Of PENtiSYl VA.NIA ItltiERlTANCE fA.X RETURN "I ! SCHEDULE C CLOSEL y,HELD CORPORATION, PARTNERSHIP er SOLE,PROPRIETORSHIP ESTATE OF GARLING H SCOTT FILE NUMBER 21 94 0688 SChedule C., Of C.2 t1ndudu'lg 8~ supporting inlormaoon) musl be attached for each cIosely.held corporatIOn/partnership inleresl 01 the decedent. other than 8 sole.propnelorshlp See Itlstrucbons lor the supporting inlonnatlOn 10 be submlned lor so!e.propnetorships ITEM NUM8ER 1. DESCRIPTION VALLEY BAKING COMPANY, SHAREHOLDER INTEREST VALUE AT DATE OF DEATH 27,69200 2. G & C ASSOCIATES, A PARTNERSHIP, DECEDENT OWNED 50%, SEE COPY OF PARNERSHIP AGREEMENT ATTACHED AND CALCULATION OF VALUE -75,646.00 TDTAL (Also enler on line 3. Recapitulation) S (If moro space is needed.lnse't additional shoels ollhe same size) -47 954.00 _-.'~-' -,---....----- ......-._~~ ,-", '-;;,\' ", ".'. COMMOtI1\EAllH or PENNSYlVAtllA .tlll( AIT Mice 1 AX RE TURtl A! SIOOlT OI:C(O[PlT SCHEDULE C-1 CLOSELY.HELD CORPORATE STOCK INFORMATION REPORT ESTATE OF GARLING H SCOTT Nam. 01 Corporallon VALLEY BAKING COMPANY Addl.SS P.O. BOX G Clly SHIPP ENS BURG FILE NUMBER 21 94 0688 Slale PA Slale ollncorporallon PENNSYLVANIA Dale ollnco'poration Zip Code 17257 Tolal Numbe, of Shareholders 4 Business Reponing Year ProducVService BREAD AND ROLLS 1 3 Federal Employer 1.0. Number Type 01 Business BAKERY STOCK TYPE Voting I Non.Voting TOTAL NUMBER OF SHARES OUTSTANDING 27 PAR VALUE NUMBER OF SHARES OWNED BY THE DECEDENT VALUE OF THE DECEDENT'S STOCK S 27 692 S J Common VOTING Prelerred 12 Provide all hghls and reslhctions penaining 10 each dass olslock. 5 Waslhe decedenl employed by Ihe Corporalion? II yes, Po,i1ion DYes IXI No Annual Salary S Time DevOled 10 Business 6 Was Ihe Corpo'ation indebled 10 Ihe decedenl? I! yes. oroVlde amount 01 indebledness S 7. Wa5lhere lile Insurance payable 10 Ihe corporalion upon the dealh ollhe decedenl? 0 Yes IXI No II yes, Cash Surronder Value S Nel proceeds payable S Owner ollhe policy DYes IXI No 8. Did Ihe decedenlsell or Iransfer ,lock ollhis company within one year phor 10 dealh or wilhin two years if Ihe dale 01 dealh was phor 10 12.31-82? DYes IXI No I! yes. 0 Transle, 0 Sale Number 01 Sha,es Transleree or Purchaser Mach a sepa'ale sheel lor addilionall,anslers and/or sales. 9 Was lhe,e a whllen shareholde,'s ag,eemenl in effeclallhe time 01 Ihe decedent's dealh? II ye,. provide a copy of Ihe agreement. Consideration S Dale DYes IXI No 10 Waslhe decedent's slock sold? IXI Yes 0 No II yes, provide a copy ollhe ag,eemenl 01 sale. elc. 11 Was Ihe corporation dissolved or Iiquidaled alte, Ihe decedent's dealh? IXI Yes 0 No II yes, o,ovide a b,eakdown of dislhbutions received by Ihe eslale. including dales and amounls received. '2 Old Ihe corpo'ation have an inleresl in olher co'porations or pannerships? 0 Yes IXI No II yes. ,epon Ihe necessary inlormalion on a sepa'ale sheet, including a Schedule C.1 or C.2 for each inleresl. THE FOLLOWING INFORMATION MUST BE SUBMITTED WITH THIS SCHEDULE A. Delailed calculations used In Ihe valuation of Ihe decedent's slock. B Complelo copies 01 financialslalemenls or Fede,al Corporalo Income Tax relurns (Fo'm 1120) lor Iho yea, of dealh and 4 preceding years. C. I! Ihe corporation owned real e5lale. submila ti51 showing Ihe complele add,essles and estimaled fai, ma,kel value/s.1! real e5lale appraisals have been secured. allach copies. o Lisl 01 principal5lockholders allhe dale 01 dealh, number olsha,es held and their relationshio 10 Ihe decedent. E, lisl 01 officers,lheir salaries, bonuses and any other benefils received from the corporation. F. Slalemenl 01 dividends paid each year. Lisl those decla'ed and unpaid. G. Any olher information relaling 10 Ihe valuation ollhe decedent's stock. To reach the value listed lor the decedcnt's interest in the G & C Associates general partnership, we have used the concept of liquidation value, or dissolution value, the value which the partners would receive if the partnership discontinued opcrations upon dissolution, sold its assets, paid its liabilities, and distributed uny remaining cash betwcen the purtners (or, in this ease, between the surviving general partner und the deceased purtner's estate). Since the decedent dicd utthe approximate midpoint of 1994, we huve a\lached to the return the G & C Associates uccountant's review reports lor the ycars ending December 31, 1993, and ending December 31, 1994, and have averaged the amounts shown on the rcspective accountant's review reports, as the best way to reach an accurate value of the decedent's partnership interest. For the year ending 12/31/93, assets are shown as 1,739,282, and liabilities are shown as 1,580,194, with the difference between the two figures being shown as partners' capital accounts. These figurcs did not consider the scenario which would require the partnership to be dissolved, the assets sold and the liabilities paid. The partnership, as shown on Note 7 (I), carried an obligation to pay Galen Asper 400,000 on an installment basis, beginning in 2002, In the accountant's review report the present value o I' these installments is given as 58,717, which is 341,283 less than the full amount Asper would have to be paid. For dissolution, or liquidation, purposes, the full cost ofthis long-term obligation must be used, since upon sale of the assets of the partnership, there would be no security for the long-term debt, and it would have to be paid ofT. When this requirement is factored in, the assets ofthe partnership show up as 182,195 less than the liabilities. Therefore the 12/31/93 value of the partnership is -182,195. For the year ending 12/31/94. the assets are shown as 1,971,517. and liabilities are shown as 1,757,668, with the difference being shown as partners' capital accounts. The Galen Asper obligation of 400,000 is shown on this year's report as 65,763, which is 334,237 less than the full amount Asper would have to be paid upon dissolution ofthe partnership. When the full cost of the Asper obligation is factored into the year 1994, the assets ofthe partnership again fall short by 120,388, Therelore the 12/31/94 value of the partnership is -120,388. Add the two figures of -182,195 and -120,388. The sum is -302,583, Divide by two to get the average value of -151,292 for the entire partnership, Divide by two the figure of -151,292 to get the value of -75,646 for the decedent's one-halfinterest in the G & C Associates general partnership. FAX 7J78327422 G AND C BUILDERS POI, (~'r PARTNERSHIP AGREEHENT AGREtHENT, made and concluded thi. ~ day of Dece.ber, 1~87, by and between H, Scott Gatling and Hicha.l J. Ca..idy, ull of Sh1ppensburg, Pennsylvania: WHEREAS, the parties hareto have entered into a partner- ahip engag..d In th.. I>u.ln.... of buyinS, ..11inS, and, rant ins real eatat~lt~e con.truction of residential hauuLns, and WHEREAS, esch of the partle. herete haa investad the aum of ~l,DDO.OO LIl ths partn.rshlp, which canDtltutad the capltal With w~ich the partnership begsn buYLnea., and WHEREAS, the partie. her.to wiah to memoriallza and record th" v.liou.. a8ree~ents and undarstandin.. batvaan themDelvea with reapect to the psrtneruhLp. NOW, THEREFORE, in cenaideration of tha mutual promiae. herein contained and LnLendin8 to be lesall)' bound, tba parti.s hereby agree that: 1. The nama of the pertnar.hip eh.ll ba G. & C. A..oclate.. 2. The principal placa of busina.. of the partnerahip ,hall be 44 Montgomery Av..nue, Shippensburl, PcnnD)'lv."ia, a"d et auch other localltlea within or without the SLate of Pennsylvan1a as may b~ agre.d upon by ehe partnera. 3, The parenorsbip haa enaaged in and ahal1 en8a8a in the business of dev..lop1nS real eatat., includina the buyinS, aell1na and dealing generall)' 1n raal ~stata of all kindu. and in the construction of resldene1el bauaeinl, and Ln auch other bU8lness pf n a1ml1ar nature or related Lhyreto ae sb.l1 be .8r~~d upon by the partnera, 4, The of ~2,OOO.OO forth, baginning capltal of the partnership .ball consiat cenatributed by the partie. hereto au ..bove .et 5, An individual account ahall maintained for eacb ~. pu'tn.r. 6, Except by unanimous agr~emant of the partnar., Dr on dis.olution, tho cape1al contributione of tbe pertnar. ehell not be 8ubj.ct to withdrawal. 7, The net profit. or nat losaes of tha partnarahip ehall be diatrlbutable or charg.able, as the CYUe aa)' be, to each of the partners in equal proportions. FAX 7175327422 G AND C BUILDERS POZ 8, Each of the partnera ahall have an equal voice in tho monas...nt Dnd aonduct of the parener.hip bu.inoaa. Each partnar ahall devu~v ~ho roqulalte time and attention needed for ~II~ ~uwluvuu of the perrnershlp to conduct end manaBe.ant uC tho partuvrubip bualnaes, 9, Any partnor Day retire from the partnerehip upon 60 dayo prior vritton notice to the other part"e~, 10, aetireDont or inlanity of a partner aha!l work an lmmodiata dlaoolutlon of tho portnerehip, 11. If any ana or more of the parties hereto ahall die durins the term of thD portnar.hip, the partnarahip ahall not ~e d..mv~ ~o bu dleaolved thereby, but thu pereonal repr.l.ntativea of the decedent or 6ecedenta ahall have the risht, privilese end option to lmnediately succeed te the interest of their reapectlve ~.~v~unL., by giving vrltten notice of their intentlon .to do aD to the aurvivl"a partu8t wlthiu 30 ~uyu ulLur Lhe death of any party. Upon the aiving Of aaid notlce, the peraonal rvprvuunLuLive ahell atand in the place and etead of the dacadent il respect of the decedent's share and profitl and reaponlibl1itlea ln the bualne.. durins the remainder of ths term of the partnerahip 12. Upon the termination of the psrtnerahip, or dla.olutlon thereof, for any cauaa, a full and accurate inventory ehall be prepared, and the aseete, liabilittee and lneo_e, both sroaa aDd net, ahall be aacertainsd; the debte of the partnerahip Ihall be discharged; and all moneys and asoets of the partnarahip ra.aini ahall bu divided in epecle.:..oDR the partner., .hare and aharu alike, i%, however, any ana of the partners shall daaira to continua tho business after the tormlnation or diaaolutioD of the partnerahip, he ha, the privilege at hia option, to pay the sum dua the withdravins or deceaaed partner for hia ahare of the asuets, or his estate, ae folloWUl 10~ upon reralnatlon or dia.olution, and the balance in 3b equal monthly In.tall.vuLa, wlth lntarest at the rate 61 par annum on the unpaid balanee; prOVided, however, that anyone or more of the ~onthly lnatallaente .ay ba pald in advance at the option of the reaainin. partner. 13. No partner without the eonaent of the other partnerl (a) borrow monuy in thu !lrm name tor tlrm purposee or utilize collateral owned by the partnership aa ,ecurlty for such loana; (b) uauiHu.tranaferlpledgaJcompromiae Dr rclcoaa any of the claims of or debta due the partnerlhip eacapt upon paymsnt in tUll; ee) lea8e, mortaaae, .ell or aRteU La uull,uny partnerahip real eat ate or any intereat thereln or anter lnto any. contract tar any auch purpoae; (~) pl.~Hv ur hyputh.c.~v ur ln any aanner tranafor hia intarest in the partner'hip, except to tb. rem.inin, patry ro thie agreement. . .. . . 13. The partnerahip ahall maintain 8 bank account or bank a~~uu"t. in aUGh bank or bank. a. mer ba a8rood upon by the pal'tnera, 14. All noticea provided for under thie 8Sl'8ement ahall be in WI'L~L"M and .hall b. aull1c1ent 1f eent bf certifi.d Dail to the laat known address to whom auch notice te to be stven. 15. Proper and complete books ef account .hall be kept at all ~.Lm.u 111111 .hell be open to 1nap.otion bf any of the partner. 01' by their acredited rapreaontative et any Lime dUI'L"~ r.aaonabl. bUDin.aa hour.. The booke ahall be axamined and ruviuw~d annuallr as of the close or each fiacul year of the partnerahip. 16. Tha partie. hereto covanent and aaree thet the)' viII aXBeULe any lurthcr inatrumanta and that they vill pOrfOI'D any acta which are or may baceme neeaeaary to e(Cuctuate and to carryon the partnerahip created by Lhia u.rec~ent. IN WITNESS WHEREDF, the parties hereto have hereunto aet their handa and 8aula the day and year firat above written. WITN "..'''..''.~. C~"'orrAtAlTHor PENNSYlVANIA 114HERlTANCETAX RETURN RESIDENT DECEDENT SCHEDULE E CASH, BANK DEPOSITS, & Mise, PERSONAL PROPERTY EST ATE OF FILE NUMBER GARLING H SCOTT 21 94 06BB Include tI1t jlIOCtOd.ollltigabon and tI1t date tI1t procttd...... rtalivtd by tI1t estale. All proptlly Jolntly-owned wffh Ill. right ollurvlYoflhlp mu.t be dltclo.ed on Schedul. F. iTEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 1964 CORVETTE TITLED IN DECEDENT'S NAME, SALES PRICE 6,500.00 TOTAL (Also enler on line 5, Rocapilulallon) S (If more space is needed, Insert additionalsheelS 0' the same size) B 500.00 -", --~" ....'. CCWIJQ!tt\EAllti Of PumSnVAPlIA. lPilj~R!1A.NC[ 'A.).~E1UR~ H,-SIOWt OEC[[)[Nt SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS ESTATE OF GARLING H SCOTT FILE NUMBER 21 94 0688 Debls of decedent mUll be reported on Schedule I, ITEM rWMBER DESCRIPTION AMOUNT " FUNERAL EXPENSES: FOGELSONGER BRICKER FUNERAL HOME, FUNERAL EXPENSE 5,349.00 a ADMINISTRATIVE COSTS: Pe,soral Represenlative's Commissions Name of Personal Represenla\Ne (51 Social Secuh~ Numbe~'11 EIN Number 01 Personal Represenlabve(.) SUeel Address I. Ci1y Slate Zip Yea~.) Commission Paid: 2. 3 AnomeyFees SALLY J. WINDER Family Exemption: (II deeedenfl8ddreu is not the same 8S c1aimanrs. attach e1planation) Claimant StreelAddress 1,500.00 Ci1y RelaliOnshipol Ctaimanllo Oe<edent WIFE Slale Zip 4. ProbaleFee. REGISTER OF WILLS, LETTERS TESTAMENTARY, SHORT CERTIFICATES, FILING RETURN 239.00 5 Accountanfs Fees 6 Ta. Return P,eparefs Fees 7. TOTAL (Alsoenier on line 9, Recapilulalion) $ (II more space is needed. insert add,lionalsheels of Ihe same Size) 7 088.00 ,.~. .,...."..".~ . COMtJOPM(AlTHOf PENNSVLVAMA Itjli[HIIAllCE tAX RETURN IOFStOf.Nf DECEDENt SCHEDULE I DEBTS OF DECEDENT, MORTGAGE LIABILITIES & LIENS ESTATE OF GARLING H SCOTT FILE NUMBER 21 94 0688 Include unrelmburetd mtdlCllexpen.tI, ITEM rWMSER DESCRIPTION AMOUNT 9,B3B.28 2. MORTGAGE TO MELLON BANK, FRANKLIN CTY RECORDER MTG BK 580 PG 431 FACE AMOUNT 22,934,2B. DATE OF DEATH BALANCE FIRST CITY ACCEPTANCE, ACCT NO. 30BB, BALANCE DUE 4,679.07 TOTAL (Also enleron line 10, Rocapilulation) S (If fT1O'O space Is needed.lnsen adoitionalsheels 01 the same size) 14517.35 '".,''',.,.':.'. COMMOPM'EAl Tll Of PENNSn VAMA If.H[RJ'At~CE 1.A.X RETURN RESIDENT OECEOlNI SCHEDULE J BENEFICIARIES ESTATE OF ~1 _ 94 -D6BB RELATIONSHIP TO DECEDENT AMOUNT OR SHARE /lUMBER NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY Do Not Lilt Trull"(I) OF ESTATE I. TAXABLE DISTRIBUTIONS (Include oUlrighlspousal di5lnbullons) 1. BARBARA L. GARLING WIFE 100% ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 THROUGH 17, AS APPROPRIATE, ON REV 1500 COVER SHEET II, NON. TAXABLE DISTRIBUTIONS: . A. SPOUSAL OISTRIBUTlONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE 1. B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS 1. .. , TOTAL DF PART II - ENTER TOTAL NON.TAXABLE DISTRIBUTIONS ON LINE 13 OF REV 1500 COVER SHEET $ .. FILE NUMBER (If more space is needed, Insert add,llonal sheels of Ihe same size) (. PETITION 1.00t GRANT 01' LETTERS 01' ADMINISTnATION Eslal.. 01 11, Scott Garling a/..o klloWII as d/~ 1-lj~f! No, To: _ /),.('t'tuw/. Soda/ Serllril)' No. l76-46-68lll) Regl"er "I' Will, for Ihe CoulllY of ...cumb.ll.rl.l1nd- in Ihe Conullonweahh of Pennsylvania The pellllon of Ihe nnderslgned respeclfully repre'ellls Ihat: Yeur petllloner(s), who 1,;_18 years of age or older, "ppl ieB for lelters of odmlnlslration on the e'tale of (LI.b,II.; I\CnLll'llle IIle; duranle ub\l.'mil1j dlllDnle Illlnurilult') the above decedent, Deeendent was domiciled at deOlh In Cumberland County. Pennsylvania, wllh I' is lost family or principal resldeneelll 301 Chestnut Circle, Shippcnsburg, PA q257 (S tl t T I i ) (11., "'eel. number nod rnunldpnlily) OU lamp on ownSI p lit Df8indcW~'sl~~nt ~frc1e,>'%~a8~~~~bdJ~i, J~i.\~~:>1 ,1994 Decendellllll death ewned property wllh e"IIlIUled values os folllows: (If domiciled In Po,) All personal property (If not domiciled in Po,) Personal properlY in Pennsylvania (If not domiciled In I'll.) Personal properlY in County Value of real estate in Pennsylvania situated os follows: S undetermined S S S undetermined Petllloner_ afler a proper sellrch ha.!!..- ascerlalned that decedent lefl no will and was sorvlved by the following spouse (If any) and heirs: Name Barbara L. Garlin Relationship spouse Residence Chestnut Circle ensburg, PA 17257 301 Shi THEREFORE, pelllioner. respectfully reque,l(s) the grant of letlers of administration In the appropriate form Ie the underslgnod, i 6 '0_ 'oi "'c "0.2 iii." ':;~ ..,.~ So a Vi ~~r2-.~JL"~' Barbara L, Garlin -:101-C1ro1rtnuc Circle "Shippensburg, p" 17257 . CERTIFICATION OF NOTICE UNDER RULE 5,6(8) Name of Decedent: II, scon GARLING Date of Death: July 29, 1994 Will No. 1994-00688 Admin, No. 21-94-0688 To the Register: I certify that Notice of Beneficial Interest required by Rule 5,6(a) of the Orphans' Court Rules was served on or mailed to the following beneficiaries of the above-captioned estate on August 12, 1994: Name Address BARBARA L, GARLING 301 Chcstnut Circle, Shippensburg PA 17257 ~. Notice has not been given to all persons entitled thereto under Rule 5.6(a) except: Date: ? ~~rJ/)f:tL,~ Slgnat r ~l:~ ':~ 0\ :<r ,.., 0.. \0 I ~ :L: Name: Sally J, Winder, Esquire Address: 701 E, King Street Shippensburg, PA 17257 Telephone: (717) 532-9476 Capacity: _ Personal representative _X_ Counsel for personal representative ~it o t). .., , ", }! '..J ...;...,- _ .'1 ,5(;: Ct to <IJCC a: ~ ( '.() ~U '. E ~::] UU & ~ J MI ? 5 lflCJ:JcL---- . -' JRD/June 30, 1992/17858 In Re: Estate of H SCOTT GARL I NG Late of SOUTHAMPTON TWP Estate Ne.: 21 - 94 - 6BB ORPHANS' COURT DIVISION, COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA No. NOTICE OF FAILURE TO FILE CERTIFICATION AND REQUE'SJ' TO CONDVer A HEARING PURSUANr TO RULE S,6(e), SUPREME COURT ORPHANS' COURT RULE Personal Representative: BARBARA L GARLING Counsel fer Personal Representative: SALLY J WINDER ESQ Date ef Grant ef Original Letters: AUGUST 9, 1994 Date of Delinquency Notice: JANUARY 4, 1995 The undersigned, Mary C. Lewis, Regisler of Wills, In accordance with Rule 5,6, Supreme Court Orphans' Court Rules, hereby notifies the Orphans' Court Division, Court of Common Pleas of Cumberland County, that neither the above named personal representative nor the above named counsel for the personal representative have flied with the Register of Wills or Clerk ef the Orphans' Court his, her er its certification required by Rule 5.6(d), Supreme Court Orphans' Court Rule and that the requisite notice, pursuant to Rule 5.6(e), Supreme Ceurt Orphans' Court Rules, was given by the Register of Wills on JAN, 4 , 19J1..~ and that the ten (10) day notice to file the certificalion has expired. Acccrdingly, in accordance with Rule 5.6(e) the Court Is hereby nOllfled of such delinquency and the undersigned requests Ibal a Court conduct a hearing to determine whether sanctions should be Imposed upon the delinquent personal representative or counsel fer the delinquenl personal representative, Date: JAN, 25, 1995 @.' &iJ ~, r Distribution: Personal Representalive Ceunsel for PersenaJ Represenlative Estate File A Hearing is set for /), lA..~oIA l/ 3 - 9 -9.5at ..5 : 30 ~ m, in Court Room No. 1, ~ If the Certification of Notice is filed prior to the hearing date, the hearing will automatically be cancelled. IS' ) f!vd" P:~ .,;,'-/., -?~-: \ /Ii; " " . u'1:; , ,( ( ,'" . 1/ . J~oY!-2\[;y, 'P. J~ , . .,. I STATUS REPOIIT UNDER RULE 6,12 Name of Decedent I \..1- ${{/TT GAAL.lrJG Date of Death: .:s'lALll 1..'1 \'VIll I will No, Admin, No, :AI - (q/11.{- bS<6' pureuant to Rule 6,12 of the supreme Court Orphans' Court Rules, I report the following with respect to completion of the administration of the above-captioned estate: 1, State whether administration of thp estate is complete: Yes 'I. No 2, If the answer is No, state when the personal representative reasonably believes that the administration will be complete: J, If the answer to No. I is Yes, state the following: a. Did the personal. rX'resentative file a final account with the Court? Yes No . b, The separate Orphans' Court No. (if any) for the personal representative's account iSI c. Did the personal representative state an account informally to the parties in interest? Yes ~ No d. Copies of receipts, releases, joinders and approvals of formal or informal accounts may be filed with the Cerk of the Orphans' Court and may be attached to this report, 51.f:11:o J W~,~ s. A L.1'{.3" \Iv IN bE (l.. Name (Please type or print) 701 t. I</N6 ST Address S+l H' P6NS~ LA({G PA 1.).$7 (111 )S"'7rQQ1{. Te I. No. Date: '10 (1-1 02- '-', f".- --- -, (..... ..,,-.1 CapacitYI Personal Representative ~ Counsel for personal representative (KAH: rmf! AMJ) '. . ' '.- . JRD/June 30. 1992/17858 II. SCO'l"l' GI\RI.ING In Re: Estate of Late of SOU'\'H~MP'I'ON '\,WP ORPHANS' COURT DIVISION, COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA No. 1994. 6BB Estate Ne.: 21.1994-6BB NOTICE OF FAILURE TO FILE STAroS REPORT AND REQUEST TO CONDUCT A HEARING PURSUANT TO RULE 6,12, SUPREME COURT ORPHANS' COURT RULE Persenal Representative: Counsel for Personal Representative: SALLY J. WINDER, ESQ., JUI,Y 29, 1994 AUGUS'l' 20, 1997 Date of Decedent's Death: Date of Delinquency Notice: The undersigned, Mary C. Lewis, Register of Wills, in accordance with Rule 6,12, Supreme Court Orphans' Court Rules, hereby notifies the Orphans' Court Division. Court of Common Pleas of Cumberland County, that neither the abeve named personal representative nor the above named counsel for the personal representative have filed with the Regisler of Wills or Clerk of the Orphans' Court his, her or its Status Report required by Rule 6.12, Supreme Court Orphans' Court Rule and that the requisite nOlice, pursuant to Rule 6.12, Supreme Court Orphans' Court Rules, was given by the Register of Wills on Allr.llf':'I' ?n , 19..!l.7and that the len (10) day notice te file the SlalUs Report has expired, Accerdlngly. in accordance with Rule 6.12 the Court is hereby netified of such delinquency and the undersigned requests thaI a Ceurt r.onducl a hearing 10 determine whether sanctions should be imposed upon the delinquent personal representative er counsel for the delinquent personal rep entatlve, ~ Dale: SEP'l'. 25, 1997 Distribulion: Personal Representative Counsel for Personal Representative Estate File A HEARING IS SCHEDUI,ED FOR R,,'. ocr. ~J 1'19 7 A'\, / / : (XI A . rn . IN COUR'l'HOOM NO. 1. IF 'I'HE S'I'A'l~S REPOR'l' (S FII,E'b PRIOR '1'0 'l'HE HEARING DA'l'E, 'l'HE HEARING WIl.I. AU'l'OMA"ICAI,LY ~E CJUoI.~I.I.ED. t C::L-'-JI~.)) / H II .D E. SHEEI.Y, P. I t1.JtA,U1.t~). v /(].-23+'1. MAKE CHECK PAYABLE AND REMIT PAYMENT TO: Rogllt.r of Willi Cumberlond County Courlhou.o CorUllo, PA 17013 CUT ALONG THIS LINE c> RETAIN LOWER PORTION FOR YOUR RECORDS ~ "R'Ev:i54'i i:'x.(iili-il'i)pc.........,... Notic'E '{iF 'INHERij ANCE"tiiic' APPR'Ais'EMENT:' A'LLOWANCi:' OR.................,............... DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX GARLING H S FILE NO. 2194.0666 ACN 101 DATE 12.22.2004 TAX RETURN WAS: ( 0 ) ACCEPTED AS FILED ([8J ) CHANGED SEE ATTACHED RESERVATION CONCERNING FUTURE INTEREST. SEE REVERSE APPRAISED VALUE OF RETURN BASED ON: ORIGINAL RETURN 1. Real Estato (Schedule A) 2, Stocks and Bonds (Schedule B) 3. Closely Held Stock/Parlnershlp InteresllSchedule C) 4. Morlpapos/Notes Receivable (Schedulo Dl 5. Cash/Bank Dopositsl Misc. Personol Properly (Schedule El 6. Jointly OWned Properly (Schedule F) 7. Transfers (Schedule G) B. Tolal Assels APPROVED DEDUCTIONS AND EXEMPTIONS: 9. Funeral Expenses/Adm. Costs/Misc. Expenses (Schedule H) (9) 7,088.00 10. Dobls/Morlpape LlablliUes/L1ons (Schedule I) (10) 14,517.35 11. TolaIDedu.t1ons (11) 21,605.35 12. Net Value of Tax Relurn (12) 887.194.65 13. CharilablelGovernmenlal BeQuests: Non.alecled 9113 Trusls (Schedule J) (13) 0.00 14. Nel Value of Estale Sublectto Tax (14) 887,194.65 NOTE: "an auoumont wa. luuod previously, IIn.. 14, 15 and/or 16,17 and 16 will ralloct IIgur.. that Include tho total of AJ.L. roturns aueuod to data, ASSESSMENT OF TAX: 15. Amount or Line 14 at Spousal rale 16. Amounl or Line 14 laxoblo at Llnoal/Closs A rale 17. Amounl or Line 14 taxable at SlbllnQ role 18. Amounl or Line 14 taxable ot Collateral/Class B role 19, Principal Tax Due TAX CREDITS: PAYMENT DATE , , Bu,fA~ OF INPIV,OUAL TAXES INt'~;RITANCE TAX DIVISION ro OOX 28000 I HARRISBURG, PA 17I28-OOPU:.::: {'" '. COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE : ,. r. [1': NOTICE OF INHERITANCE TAX '.' APPRAISEMENT, ALLOWANCE OR DISALLOWANCE . ':OF DEDUCTIONS AND ASSESSMENT OF TAX DATE ESTATE OF DATE OF DEATH FILE NO, COUNTY ACN 12,22.2004 GARLING H S 07-29,1994 2194.0088 Cumborlond 101 2005 JhH lOW 9: h 1 J'~r.-" (,- SALLY S Wlbl~' 3Q:c'L.!: ~T 9974 MOLLY .6 ERHWY, ';.' SHIPPENSS'P/d7257 :, Amount Rlmlltld ESTATE OF (1) (2) (3) (4) (5) (6) (7) 0.00 0.00 702,000.00 0.00 200,800.00 0.00 0.00 IB) (15) (18) (17) (18) 887,194.65 X .03 X ,045 X .12 X.15 (19) RECEIPT NUMBER DISCOUNT (+) INTEREST/PEN PAID . AMOUNT PAID ~() _iW IllY.1'" IX '''''1) M: NOTE: To Insure prop.r credlllo )'our Iccount, .ubmlt thl upper portion of Ihl, form with your lax PI)'m'"I. 908.BOO.00 20,615.B4 28.615.84 TOTAL TAX CREDIT 0.00 BALANCE OF TAX DUE 28,015.B4' INTEREST 19,257.15 TOTAL DUE 42,072.99 (IP TOTAL DUB 18 LISS THAN '1. NO PAYKBNT IS RBgUIRBD, Ir TOTAL DU. IG RI'L&CTID AS A CRaDIT (CR), YOU KAY aa DUI A R.nnm. sn R_nRsa SIDK 0' THIS FORM 'OR INSTRUCTIONS. I INTEREST CALCULATED UNTIL 01.12.2005' . IP PAID A'T.R DATI IHDICATID, S__ RlvaRSK 'OR CALCULATION or ADDITIOIIAL INTKR_ST. RESERVATION: ealal.a of decedents dyfng on or borore December 12. 1982 -If any Mute lnterallln the altale 1,lranSferred In poll8l1lon or enJoymenllo CI.II B (coItaleral) benelk:larfol of lhe decedent after tho eXplrallon of Iny oltalo for lite or for )'8111, tho Commonwealth hereby ,xprellly reaervellhe nohl to appralllland 811011 tranlfer Inheritanco TaxI181 tho lawful Cl811 B (conal'llIl) fale 01'1 any IUch future Inlemll PURPOSE OF NOTICE: PAYMENT: To fulfill the requIrement. of Section 2140 of the Inheritance and Eltale Tax Act, Act 21 of 1995. (72 P.S. Section 9140). Detach the lop portion of thI, Notice and submit with )'Our payment 10 lho Roolsler 0' Will, printed on tho reverse ald.. Make check or money order payeblolo: REGISTER OF WILLS, AGENT. A refund of 8 lax credil. which waf nol requested on the Tall Return. may be requelled by complellng an -Appllcallon for Refund of Pennsytvanla Inheritance and eltaht T8)1 (REV.'313). AppllcaUons are available alltle 0""C8 of the Reglsler ofWms or enyof the 23 Revenue Dlstricl Olticel, or by calling Ihe .pecfaI24-hour answering service numbof'l'or 'orms ordering: In Pennl)'lvanla 1.800-382.20~, oulsldo Penns)'lvanla and wtthln local Horri.burg 0"0 (717) 787-ll004, TOO' (717) 772.2252IHoarin9 Impolrod Only). Any party In Inlerosl nollallltiod with lhe apprallement, allowanco or disallowance of deductlonl, or Ollollment of laIC (Including dllCounl or Inlerell) 01 lhown on Ihls Nollca mUll object within Ildy (60) dO)l1 0' receipt of Ihll Nollce by: -wrmen proloslto lho PA Departmenl of Revonue Board of Appeall, PO BolC 281021, Harrisburg, PA 17128.1021, OR -eltcUon 10 have lhe mailer delermlned alaudil of lhe account of lhe perlonal representallve OR -appoallo the Orphans' Court, REFUND ICR): OeJECTlONS: ADMINISTRATIVE CORRECTIONS: Factual errorl dllCOVered on this allellmentlhould be addrellad In writing 10: PA Departmenl of Revenue, Buteau of Individual Taxel, ATTN: Post Allellmonl Review Unll, PO Box 280601 Hanisburg, PA 17128.()601 Phone (717) 787.0505, See page 3 of lhe booklet-Inslructlonl for Inheritance Tax Return 'or. Realdenl Decodonr (REV.1501) for en o)lplanallon or admlnlllraUvelycorreclable orrof'l, OISCOUNT: It any lalC duo II paid within three (3) calendar monlhsaflor the decodent'. death a tive percenl (5%) dllcount of the talC paId II allowed, PENALTY: Tt1e 15% IalC amnolty non.partlclpatlon penally II compuled on the total of the tax and Inlorosl assolled, and nol paid before January 18,1098, 1118 firal day after lhe ond of tho lalC amnosty period. Thll non.partlclpatlon penally I, appealable In lhe lame manner and In tho lame time period al you would appeal the tu and Inlorost thai has boen allolled as Indicalod on this nolico, INTEREST: Inlerollls charged boglnnlng with nrat day 0' deUnquency, or nlna (9) monlh. and ono (1) day from tho dale of death, to Iha dalo of paymant. TelCQS which became dellnquenl before January 1, 1982 boar Inlorost 01 tho mla of IllC (6%) percenl por annum caleulalod at a dally rala 0' ,000104, All lalCel which became delinquent on and aftor January 1, 1982 Will boarlnleroslat II rale which will vary 'rom carandar yaar 10 calendar year with thai ralo Dnnounced by tho PA Departmont of Ravenue, Tfllloppllcable Inlerest ralol for 1D82lhrough 2001 are: Inlarolt Dally Inlorelt Dally Inlerelt Dally Yoar --B!!L Factor Yoar Rale Factor Year -..!!!!L. Factor 1082 20% ,000548 1ge8.1001 11% .000301 2001 9% .000247 1983 18% .000438 1092 9% .000247 2002 0% 000'64 1984 11% .000301 1003.1004 7% .000102 2003 5% .000137 1985 13% .0003S8 1095-1000 0% .000247 2004 4% .000110 190e 10% .000274 1000 7% .000192 200S 5% .000137 1907 9% .000247 2000 8% .000219 -Inlerest II calculaled as follOWl: INTEREST. BALANCE OF TAX UNPAJD X NUMBER OF DAYS DELINQUENT X DAILY INTERESTFACTOR -Any Nollce Issued after tho lalC becomes dellnquenl will renacl an Interell calculalJon to fifteen (16) doys beyond the dala of the allellment. If payment II made attar Ihelnlerest campulallon dalelhown on the Nollee, addillonallntafosl mUll be calculalod. :i {.cs}\ .\ .,. ~ /1 ;. MY-Utili"'" , , '* INHERITANCE TAX EXPLANATION OF CHANGES COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU eF INDMDUAL TAXES DEPT. 280&01 ARRI B R P 17' B.OS DECEDENrs NAME REVIEWED BY H S Garling LudwIg Stelgler FILE NUMBER ACN 21 94.0688 101 ITEM SCHEDULE NO, EXPLANATION OF CHANGES C 1 Valley Baking Company adjusted to $302,000 C 2 G & C Associates adjusted to $400,000 E 2 Non-compete payments due the decedent pursuant to fi7,1.4 of the asset purchase agreement between Valley Baking Company and Martin's Famous Pastry Shoppe, Inc, . $100,000 E 3 Payments due the decedent pursuant to fi7,1,4 of the asset purchase agreement between Valley BakIng Company and Martin's Famous Pastry Shoppe, Inc. . $70,600 E 4 Payments due the decedent pursuant to the purchase and sale agreement between Valley Baking Company and Stroehmann BakerIes, Inc. $27,700 or ROW Page 1 / p I i STATUS REPORT UNDER RULE 6,12 Name of Decedent: Date of Death:--=7 ~a( I in~ Zq. (H 1-4. SCOt\- Will No, Admin, No,j93<<-1- OOr088 Pursuant to Rule 6.12 of the Supreme Court Orphans' Court Rules, I report the following with respect to completion of the administration of the above-captioned estate: , State whether ~~inistration of the estate is complete: Yes NO-A- 2. If the answer is No, state when the personal representative ~eJ,o~ablY believes that the administration will be complete: I '11... J, If the answer to No, 1 is Yes, state the following: 1, a, Did the personal representative file a final account with the Court? Yes No ~ b, The separate Orphans' Court No, (if any) for the personal representative's account is: c, Did the personal representative state an account informally to the parties in interest? Yes No ~ d. Copies of receipts, releases, joinders and approvals of formal or informal accounts may be filed with the Cerk of the Orphans' Court and may be attached to this report, Date:~ ,,~"- 1_-' ~'} If'\ '..f'.~' "I tS: ~:' c.( ..., c~ Signature . \Ct\I~ . l;);h d.u-- Name (P ease type or print) 70\ ~ Kif\g ~~ Address hiP{Jei'.~bv. r'l P4 .Q171 5.3J. - QL\7Co Tel. No. o ~ fh L") Capacity: Personal Representative ~counsel for personal representative I,) , 1Jlt..L ().; '(J p, ~ .:: _::J UU (HAH: rmf/ AMJ) ... .. JRD/June 30, 1992/17858 In Re: Estate ef Late of SHIPPENSBURG H. SCOTT GARLING ORPHANS' COURT DIVISION, COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSVLVANIA No. 1994-688 Estate No.: 21-1994-688 NOTICE OF FAILURE TO FILE STATUS REPORT AND REQUEST TO CONDUCT A HEARING PURSUANT TO RULE 6,12, SUPREME COURT ORPHANS' COURT RULE Persenai Representative: 8ARBARA L. GARLING Counsel for Personal Representative: Date of Decedent's Death: JULY 29, 1994 Date of Delinquency Notice: AUGUST 6, 1996 The undersigned, Mary C. Lewis, Register of Wills. in accordance with Rule 6.12, Supreme Court Orphans' Court Rules, hereby notifies the Orphans' Court Division, Court of Common Pleas of Cumberland County, that neither the above named personal representative nor the above named counsel for the personal represenlative have filed with the Register of Wills or Clerk of the Orphans' Court his, her or its Status Report required by Rule 6.12, Supreme Court Orphans' Court Rule and that the requisite notice, Rursuantto Rule 6.12, Sugreme Court Orphans' Court Rules, was given by the Register of Wills on UGUST 6 , 19'3_, and that the ten (10) day notice to file the SlalUs Report has expired. Accerdingly, in accordance with Rule 6.12 the Court is hereby notified of such delinquency and the undersigned requests that a Court conduct a hearing to determine whether sanctions should be imposed upon the delinquent persenal representative or cou sel for the delinquent personal representative. Date: AUGUST 27, 1996 . I,"" I l;)II.I2, IYl'h M y C gister 0 Wills 1JW-</ Distribution: Persenal Represenlative CouroSel for Persenal Representative . Estate File ^' Y' 1_... D9/ 1.'/' (/ II A HEARING IS SCHEDULED FOR IV'() f-mOZA... J , /, c.o AT -0 ,/Y}, IN COURTROOM NO.1. IF THE STATUS REPORT ~S FILED PRIOR TO THE HEARING DATE, THE HEARING WILL AUTOMAT .CALLY BE CANCELLED. -(JA--</ (- -' ,8f, C utud (U\. Q {~. ~q lp H STATUS REPORT UNDER RULE 6,12 Name of Decedent: ~ ' <;(OTT 6,4RLlN(; Date of Death: 0tA.L8 2'~ \(1'1 l/ } No. }. 1_1l\~l/-6 ~ ~ Will No. Admin, Pursuant to Rule 6,12 of the Supreme Court Orphans' Court Rules, I report the following with respect to completion of the administration of the above-captioned estate: 1. State whether ~dministration of the estate is complete: Yes No ^ 2, I f the answer is No, representative reasonabl~ believes complete: MA'/ I) l'itn 3, I f the answer to No, state when the personal that the administration will be 1 is Yes, state the following: a. Did the personal r~resentative file a final account with the Court? Yes No~, co .- , , V1 " , ,..\ c- o <'1 I- r..'l "" (Ill) c;") 2..-'1'-t., 6 Tel. No. b. The separate Orphans' Court No. (if any) for the personal representative's account is: c. Did the personal representative state an account informally to the parties in interest? Yes)( No d, Copies of receipts, releases, joinders and approvals of formal or informal accounts may be filed with the Cerk of the Orphans' Court and may be attached to this report, Date: Lo ("Sf) ! q 6 sW4r~W~ SA L.L Y :::r W I IV \)C t\ Name (Please type.or print) 101 E I<ING ST SHIP(JEOtJ3I$uRG {?f\ 1,7.')"1 Address Capacity: Personal Representative ~ Counsel for personal representative "~ L: (j~ ,.} ~ Cl:( MAH: imf/A5l:$ ~ -. JRD/June 30, 1992117858 REGISTER OF WILLS Cumberland Ceunty Ceurtheuse One Court he use Square Cnrllsle, PA 17013 NOTICE PURSUANT TO RULE 6,12 PENNSYLVANIA SUPREME COURT ORPHANS' COURT RULES To: Personal Representative Counsel: SAl,LY J. WINDER. ESQ.. RE: E&late er H. seo'!''!' GARLING , Deceased, Late er SOU'l'HAMP'l'ON 'l'WP EstaleNo,: .t.l'.l~~4.Utltltl Dale or Decedent's Death: Jur.Y 29, 1994 Pursuant to Rule 6,12, the above named personal representative or the above na!"ed attemey, if applicable. within two (2) years of the decedent's death, and annually thereafter until administration is completed, is required to file with the Register of Wills a Status Repert as required by Rule 6.12, in substantially the prescribed ferm, showing the dale by which the personal representalive, or attorney. as applicable, reasonably believes administration will be completed. The purpose of this Notice is 10 advise you that unless the requisite Status Report is filed with the Regisler ef Wills or Clerk ef the Orphans' Court, as appropriate, within ten (10) calendar days aller the date of this Notice that the Register of Wills Is required to notify the Orphans' Court Dlvisien, Court of Cemmon Pleas ef such delinquency and te request that said Court conduct a hearing to detennine whether sanctions should be Imposed upon the delinquent personal representative and the delinquent personal representative's counsel, If any, Accordingly, If the requisite Status Report Is net filed by SPE'l'. 5 ., 199..1, you are hereby advised that a request will be submitted to the Court in accordlllce with Rule 6.12. (\ , Date: AIIGIIS'l' 20, 1997 --r!\...~c..'~pLL\...Jr~~ Deputy gister of Wills Distributien to Estate File l'hb b 10 fcrtil)' Ih,lt rill' inlurllI,lfion Iwrl' ghcll i, lorll'lrl)' lllJ1it'd Irolll .111 llri}.:in.d u'nilir.lIl" nl deilth dill}' fikd whh me us l.ot:allh'gisHiir. The miHill,a1 fl'rI ilil".lIc' will ht, fOI'\\';lCdt.d 10 till' SI.Ut' Vifill Hl'l,:lIrl,!o. (HJjfl' lor pl'rlll:IIICIH filill}.:. WARNING: Ills Illegal to duplicate this copy by pholostat or photograph, Fl't.' (or this l"l'rcific.Hc, $2.00 72~"!i{J~~ 253332:1. No. /( - ;2 :./22:L l>JW ,..,,,, COMMONWEALT" OF PENNSYLVANIA. DlPARTMlNT OP' Hl!ALTH. VITAL RtCORDS CERTIFICATE DF DEATH (Coroner) ,. '.........1....' Harold s en rUng ,.,,..,..-. tCICIAl.lf~""'._.." .. _",... >AI" _.. ...,..."",..... ...1 .-."-",- ""..., ,... -, ..-.......,.\....,' ..j:oJo,jii Nov.27.1954 Ch4lllb"-'lAbu'l:9.PA ......_u I~n 176.46-6'09 GIoII~Ilf"''''''',_''''_'' .- ....., l,Ifol 'If f. July 29. 1994 39 OQIlll ~~..,LI ." ".'" ." " ...--.-... .-...' White Cumberland "'.....u_ ....."'-- ~r"'_"l maJVt.i(ld ,,,....,...'0."".... ,.-.................. 8411.M'l4 L. fI(' kill! Ir.til__.....~au.tba.m,.1tml ..- ,~ <" _,a ~ltll_ 01/776-L " .--. SpIU"9 HUt Cemt~"'Y Shipp'n.\b~, PA , 72S7 ".H.IIl"../lJ Bot 336,Sl\ifl.""'lu""PoII1257 /7257 ~ __....0 - --~ .....-..............._011_.. ~_..- :::.:...;::.::...-=- '~orl'>f"'H Aprx. PWHlIoW<<.loilt!; lV...._, ~ 12:30 P....j,.. July 29, 1994 -..- _._....__11._".........(>0............_......... ...~..,.._.'....._,.~Hl _............... ;~,...,_.-......I\" ...' ....,.... _....-... ...~".-- ,t \'t. , , '" '-'''''_1 - ~ ...1] ... -,- ~-- --- ~........--........._...... ....,---.......~._._..r.l!l -..- :=.~...... ICA&MI__...... ---.. '......~1..AI1 . Cardiac Arr.hy,ttullie -~DUf.u;r.irr;rrm,.lUI;;;:r(" . Acute Coronary Throlllbo8is ~iUi;;;;J;ji[I...J,...O('....t"l .--- t~ADJ.t.KlJt__G~'--r911IH.Y_Art!'_l.:y. tlIItlOl'...~M'~"..."'lu' Remote HI . - ..""'_.. ...-.....,..", ,""'............. "'II'IION"IO! ~tMl(llllIU ......1..._.' t:1W"'l'IIIJtI1l'UIIW ..... ~ -. Of"lol."'''' " ..0 ..1)1. ...r:J .,- IJ .....- ~ ..... I] c.III..~.._ - - " ICMf.r.:;-~......._..W_,_,.,_,_....._..............,.........t,_.."...._.'...~/~ .. ............,--..,.._...__11....._'1__....- Coroner .-.....NIlIetlQ~""ICI&JI~....h..,....__.."'_..,....o.U.,,.._,.....~ .,....-.............---.....__ _....___...l_.I__.._... tlAIllolf1ltiiiN._ h.;";;:;,:,'--"-~ ~ly 31.1994 ow _.." COW'IrltlltAUMI~H----- ,......u"""...,.""'Hichoel L. Norris, Coroner \A 405 Fairway Drive "N Mechanic.burg. Po. 17055 bV :dt" ".~...,~-., O(~____~~________~. '!-C..D~g/.?Zr- - . " COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES DEPARTMENT 280601 HARRISBURG, PA 17128-0601 July 29, 2004 Sally J Winder 9974 Molly Pitcher Highway Shlpplnsburg, PA 17257 Telephone 717 783-0972 Re: Estate of H Scott Garling File Number 2194-0688 Dear MS.Wlnder: This letter Is to confirm that the Department of Revenue has accepted the estate's request to extend the time within which to Issue a Notice of Appraisement, Allowance or Disallowance of Deductions and Assessment of Tax. The estate's copy of the accepted consent Is attached to this letter. A copy of the approval has been sent to the Register of Wills In Cumberland County to be Included In the estate records, Sincerely, If you have any questions concerning this letter, please contact me at the phone number noted above, cc: Cumberland County Register of Wills v" s 9(":' g :0 :3 ". :?ro ", n rJ (CO '2 .' ~Ir ~ I!I " 1 ." ill '. c,. c'. I ,> \D (:. -.. 0 "'0 "'."':; I',; ._~. .', .c. Vi" :-u:. (..j () )... .:..l -. 0\ s~ "''''''''' fal ... ,~. "REVn;t'I""". COMMONWEAlTH OF PENNSVl VANIA OEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES INHERITANCE TAX DIVISION OEPT. 280601 HARRISBURG PA 17121-0601 CONSENT TO EXTEND THE TIME WITHIN WHICH TO ISSUE A NOTICE OF APPRAISEMENT, ALLOWANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX INSTRUCTIONS: 1. Complele In Irlpllceto and sand alllhree copies 10 tho above address. Taxpaye(s copy will be returned after exacution of the Consent. One copy will be forwarded 10 the Roglsler of Wills. 2. If a prior Consanl wos oxeculed, Ihll Conlent must be executed on or before the date set forth et Pert III of the prior Consent. AUech cOl'Y ef I'rlQr COil lent.) PART I: ESTATE INFORMATION: Imlot ",t.,. H, Scott Garling 21 94-0688 7/29/1994 FIHlNum , 011.01 o..th County I" WiliChthilnh.nllnc. TII f .Iu'" ., ~d Cumberland DiieOOWhldllh. Inh.lltlncilihJtelum WI' " ed .t the Reglll" 01 WIn, January 22, 2004 PART III CON8ENT This Consent to Extend the Time within which to Issue a Nollce of Appraisement, Allowance or Disallowance of Deductions and Assessment of Tax, Is entered into by the personal representallve of the Estate and the Secretary of Revenue, Commonwealth of Pennsylvania, Department of Revenue, by the Deputy Secretary of Taxallon. 72 P.S. gg9137, 9138, 9139, By this Consent, the parties agree to extend the time limit for issuing an Bssessment 01 tax, penalty, and Interest relating to the above-referenced Estate. The Estate and the Department waive the requirement that the Department appraise property, determine the allowance or disallowance of deductions reported on the Estate's inheritance tax retum and assess addillonal tax due by the Estate, within six months of the date the return was filed with the Register of Wills, 72 P,S. gg9137, 9138, 9139. This Consent is binding on the Estate and the Department of Revenue, This Consent supersedes all prior agreements between the parties inconsistent with this Consent. This Con8ent does not extend the lime for payment of tax, penalty or interest. Interest will be calculated from the statuto [}I due date to date of payment. PART III: EXTENDED ASSESSMENT DATE December 31,2004 Slgn.lUI. Oat. FOR THE DEPARTMENT OF VENUE I (01.':;)L.-C"_t- T' .. ' .' CHARLES W. FRAME, III ~rl;fitd Public Acrounlanl 1137 South Fourth Street Chambersburg, Pennsylvania 17201 (717) 267,2957 To the Partners G&C Associates Shippensburg, Pennsylvania X have reviewed the accompanying statement of assets, liabilities, and capital - modified cash basis of G&C Associates (a partnership), as of December 31, 1994, and the related statements of revenues and expenses - modified cash basis and changes in partners' capital - modified cash basis for the year then ended, in accordance with statements on Standards for Accounting and Review Services iseued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the owners of G&C Associates. A review consists principally of inquiries of Company personnel and analytical procedures applied to financial data. It ie substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, I do not express such an opinion. Based on my review, X am not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the modified cash basis of accounting, ae described in Note 1. ~.,4 ?~. ~ $'- July 20, 1995 Chambersburg, Pennsylvania G&C ASSOCIATES STATEMENT OF ASSETS, LIABILITIES, AND CAPITAL - MODIFIED CASH BASIS (See Accountant's Review Report) DECEMBER 31, 1994 ASSETS CURRENT ASSETS Cash Marketable securities - net of valuation allowance of $31,318 Land and conetruction in progress TOTAL CURRENT ASSETS PROPERTY AND EQUIPMENT Land and buildings Vehicles - capitalized lease Equipment Less: Accumulated depreciation $ 24,531 48,415 ~24.839 997,785 TOTAL PROPERTY AND EQUIPMENT - NET OTHER ASSET Loan fees, net of accumulated amortization of $1,372 Mortgage receivable 1,103,753 46,719 39.546 1,190,018 1235.843) 954,175 TOTAL OTHER ASSETS TOTAL ASSETS 6,788 12.769 19.557 $1.971.517 2 r " r t ~ I I I LIABILITIES AND PARTNERS' CAPITAL CURRENT LIABILITIES Current maturities of long-term obligations Accrued interest Security deposits payable Line of credit payable Construction costs payable Deferred contract revenue Note payable TOTAL CURRENT LIABILITIES LONG-TERM OBLIGATIONS - NET OF CURRENT MATURITIES TOTAL LIABILITIES PARTNERS' CAPITAL Barbara Garling Michael J. Caseidy TOTAL PARTNERS' CAPITAL TOTAL LIABILITIES AND PARTNERS' CAPITAL See accompanying notes which are an integral part of this financial statement. 3 $ 155,469 U,581 2,784 117,850 75,000 185,901 210.000 788,585 969.D83 1,757,668 106,924 106.925 213.849 $1.971.517 I I I I I I i i" i I I i .' G&C ASSOCIATBS STATBMENT OF REVENUBS AND BXPBNSBS - MODIFIBD CASH BASIS (See Accountant's Review Report) FOR THB YEAR ENDED DECEMBER 31, 1994 REVENUE Sales - New Construction Rental Income $ 786,540 179.013 965,553 649.440 316,113 TOTAL REVENUB COSTS OF SALBS EXCBSS OF REVENUES OVER COSTS OF SALES EXPBNSES Rental Expenses Repairs and Maintenance Utilities oil Supplies Advertising Insurance Taxes Association Fees Interest Depreciation Miscellaneous Amortization 12,258 20,692 4,044 1,276 949 5,808 13,487 3,020 75,749 38,137 1,080 491 176,991 Total Rental Expenses General and Administrative Office Expense Office Salaries Employee Benefits Advertising Accounting Donations Insurance Dues and Subscriptions Small Bquipment and Supply Vehicle Expenees Vehicle Depreciation utilities Repairs Health Insurance - Partners Life Insurance - Partners Miscellaneous 1,931 24,250 2,343 619 7,423 555 731 621 586 1,289 5,3DO 3,544 1,692 7,128 1,707 2.412 62.131 239.122 Total General and Administrative Expenses TOTAL EXPENSES - continued - 4 " \ . G&C ASSOCIATBS STATEMENT OF REVENUES AND EXPBNSES - MODIFIED CASH BASIS (See Accountant'e Review Report) I FOR THB YEAR ENDED DBCEMBBR 31, 1994 Continued f OPERATING INCOME $ 76,991. I I OTHER INCOME (EXPENSES) I Dividend Income 727 i Miscellaneous Income 11,480 Interest Income 2,053 f. Interest Expense (23,078) Life Insurance Proceeds 9,584 Unrealized Gain on Marketable Securities 1.607 OTHER EXPENSE - NET 2.373 NET INCOME $ 79.36'" See accompanyinq notes which are an inteqral part of this financial statement. 5 ~--'""""-"''''''''-'''-'''''''~~-''-",-....,.., ~"_.'~"~- --- G&C ASSOCIATBS STATEMENT OF CHANGES IN PARTNERS' CAPITAL - MODIFIBD CASH BASIS (See Accountant'e Review Report) FOR THE YEAR BNDED DECEMBER 31, 1994 ~CB AT DECEMBBR 31, 1994 Barbara Michael J. Garlinq Cassidy Total $ 79,597 $ 79,597 $159,194 39,682 39,682 79,364 (12.355) /12.354) /24.709) $106.924 $lD6.925 $213.849 BALANCB AT JANUARY 1, 1994 NET INCOME fITHDRAWALS See accompanying notes which are an integral part of this financial statement. Ii G&C ASSOCIATES NOTES TO FINANCIAL STATEMENTS (See Accountant's Review Reportl DECEMBER 31, 1994 NOTE 5 - ACCRUED INTEREST The terms of the mortgage on a condo in Topsail, North Carolina, include an interest rate of 10.25% and monthly principal and interest payments of $1,058. Since April 1988, the partnership has been making monthly payments of $500, resulting in an intereet liability of $41,581 as of December 31, 1994. The unpaid interest is considered for financial reporting purposes as additional borrowing resulting in an increase in interest expense and corresponding increase in accrued interest. NOTE 6 - NOTE PAYABLE In connection with the purchase of the Asper Farm, G&C borrowed $250,000 from a local bank. The terms of the demand loan include interest at 9%. G&C is currently making monthly interest payments and is paying $2,500 of principal for each lot sold at the Asper farm. As of December 31, 1994, the note payable balance is $210,000. NOTE 7 - LONG-TERM OBLIGATIONS Maturitiee Propertv Current Lonq-Term Total BOD-802 Ritner Highway (AI $ 3,069 $ 34,982 $ 38,051 9974 Molly Pitcher Highway (91 6,707 224,065 230,772 24 Middle Spring Avenue (CI 1,924 117,200 119,124 Shipwatch '1214, Topsail, NC (DI 116,934 116,934 411 Westover (EI 866 65,900 66,766 I King Street, first mortgage (FI 6,931 307,564 314,495 II King Street, second mortgage (GI 5,896 68,660 74,556 Cumberland Valley Co-op loan (HI 50,932 50,932 I Asper liability (II 65,763 65,763 2 vehicles - ca1ita1ized lease ob1igat on (JI 7,508 17,378 24,886 ! Backhoe loan (KI 5.634 16.639 22.273 $155.469 $969.083 $1.124.552 (AI An adjustable rate mortgage is collateralized by an apartment building at 800-802 Ritner Highway. The interest rate is currently 6.0%, monthly principal and interest payments are $439, and the remaining term of the mortgage ie 9 years and 7 months. 9 , 1''( -----."""''''. G&C ASSOCIATES NOTES TO FINANCIAL STATEMENTS (See Accountant's Review Report) DECEMBER 31, 1994 (B) NOTE 7 - LONG-TERM OBLIGATIONS (CONTINUED) A mortgage is collateralized by a professional office bUilding at 9974 Molly Pitcher Highway. The interest rate is 8.00%, monthly principal and intereet paymente are $2,112, and the remaining term of the mortgage is 16 years and 4 months. An adjustable rate mortgage is collateralized by an apartment bUilding at 24 Middle Spring Avenue. The intereet rate is currently 6.9%, monthly principal and interest payments are $1,056, and the remaining term of the mortgage is 25 years. A condo in Topsail, North Carolina is collateral for a mortgage. The terms of the mortgage call for an interest rate of ID.25% and its original five-year term ended July 1, 1991. Since April 1988, the partnership has been making mortgage payments of $500 per month, while the terme of the mortgage require payments of $1,058 per month. Since the terms of the mortgage are not being met this loan is coneidered currently due. (e) (D) (B) G&C Associates has entered into an agreement to purchase a rental property. The agreement calls for a initial payment of $100, 48 monthly payments of $500, and a final payment of $65,900 on January 1, 1996. The preeent Value of these payments Using a 8% capitalization rate is $68,919. The property has been capitalized at $68,919 with the initial liability recorded at $68,819. At December 31, 1994 the present value of the remaining payments is $66,766 using a 8% capitalization rate. (F) An adjUstable rate mortgage is collateralized by a building at 12-16 E. King Street. The interest rate is currently 9.5%, monthly principal and interest payments are $2,979, and the remaining term of the mortgage is 29 years. " , ? (G) A seCond mortgage collateralized by a bUilding at 12-16 E. King Street. The interest rate is currently 8.0%, monthly principal and interest payments are $971, and the remaining term of the mortgage ie 9 years. (8) G&C has entered into an agreement to purChase land called the Asper farm. The agreement calls for G&C to assume a loan payable of $74, ODO to the CUmberland Valley CO-Operative ASsociation. The terms of the loan call for no interest for three years and principal payments of $1000 for every lot sale. The present Value of the loan at December 31, 1994 is $50,932 Using a 9.25% capitalization rate. In G&C ASSOCIATES i I' I NOTES TO FINANCIAL STATEMENTS (See Accountant's Review Report) DECEMBER 31, 1994 I I I I I I i , I , I ! NOTE 7 - LONG-TERM OBLIGATIONS - (CONTINUED) G&C has entered into an agreement to purchase land called the Asper farm. The agreement calls for G&C to make monthly payments of $1,700 beginning June 30, 20D2 until $400,00D has been paid, approximately 235 months. The present value of these payments at December 31, 1994 is $65,763 using a 12% capitalization rate. Two Chevy Blazers are collateral for these capitalized vehicle leases. The terms of the leases call for monthly principal and interest payments totalling $722. (K) A backhoe ie collateral for the loan which has an interest rate of 9.25% and requires monthly principal and interest payments of $625. The remaining term of the loan is 3 years and six months. (I) (J) Maturities of long-term obligations are as follows: YEAR ENDING DECEMBER 31. 1995 1996 1997 1998 1999 Thereafter CAPITAL LEASE $ 7,508 17,378 TOTAL $ 155,469 115,998 35,499 34,776 33,650 749.160 DEBT $ 147,961 98,620 35,499 34,776 33,650 749.160 S1.099.666 S 24.886 S1.124.552 NOTE 8 - LINES OF CREDIT The company hae three approved lines-of-credit with Orrstown Bank in the amounts of $32,00D, $44,5DO, and $75,000. The amounts borrowed and outstanding at December 31, 1994 were $16,000, $31,000, and $70,850, respectively. Intereet was paid monthly at variable interest rates at December 31, 1994 of 11%, 11%, and 10%, respectively. 11 G & C ASSOCIATBS NOTBS TO FINANCIAL STATBMBNTS (See Accountant's Review Report) DECBMBBR 31, 1994 NOTE 9 - PAYMBNTS TO RELATBD PARTIBS The company made payments to the partners and their spouses for services performed during 1994. These payments are recorded in the accounts of the company as fo11owSl Construction Cost of Office in Proaress Conetruction Salaries Total Hike Cassidy $12,40D $17,300 $ $29,7DD B. Scott Garling 1,842 15,383 17,225 Barbara Garling 10,575 3,075 11,250 24,900 Julie Cassidy 13.000 13.000 Totals $24.817 $35.758 524.250 $84.825 12 '. , ., G&C ASSOCIATES .SHIPPENSBURG; PENNSYLVANIA DECEMBER 31, 1993 j i " .1 .'1 , ~ TABLB OF CONTBNTS Accountant's Review Report Statement of Assets, Liabilities, and Capital - Modified Cash Basis Statement of Revenues and Bxpenses - Modified Cash Basis Statement of Changes in Partners' Capital - Modified Cash Basis Notes to Financial Statements 1 2-3 4-5 6 7-11 '. CHARLES W. FRAME, III Qrllfitd Public lI=u.'..' 1137 South Fourth Street Chamberaburg, Pennsylvanle 17201 (717) 267.2957 To the Partners G&C Associates Shippensburg, Pennsylvania I have reviewed the accompanying statement of assets, liabilities, and capital - modified cash basis of G&C Associates (a partnership), as of December 31, 1993, and the related statements of revenues and expenses - modified cash basis and changes in partners' capital - modified cash basis for the year then ended, in accordance with Statements on Standarde for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements ie the representation of the owners of G&C Associates. A review consists principally of inquiries of Company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, I do not express such an opinion. Based on my review, I am not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the modified cash basis of accounting, as deecribed in Note 1. c~ U/, ~:;;r September 7, 1994 Chambersburg, Pennsylvania '. G&C ASSOCIATBS STATBHBNT OF ASSETS, LIABILITIBS, AND CAPITAL _ MODIFIED CASH BASIS (See Accountant's Review Report) DECEMBBR 31, 1993 ASSBTS CURRENT ASSBTS Cash Marketable securities - net of valuation allowance of $32,925 Land and construction in progress $ 8,098 42,544 693.315 743,957 TOTAL CURRENT ASSETS PROPBRTY AND EQUIPMENT Land and buildings Vehicles - capitalized lease Equipment Lessl Accumulated depreciation 1,102,219 46,719 8.445 1,157,383 (185.136) 972,247 TOTAL PROPBRTY AND EQUIPMENT _ NBT OTHER ASSET Loan fees, net of accumulated amortization of $881 Mortgage receivable TOTAL OTHER ASSBTS TOTAL ASSBTS 7,279 15.799 23.078 ,S1.739.282 2 LIABILITIES AND PARTNERS' CAPITAL CURRENT LIABILITIES Current maturities of long-term obligations Accounts payable - completed contracts Accrued interest Security deposits payable Line of credit payable Construction costs payable Deferred contract revenue Note payable TOTAL CURRENT LIABILITIES LONG-TERM OBLIGATIONS - NET OF CURRENT MATURITIES TOTAL LIABILITIES PARTNERS' CAPITAL H. Scott Garling Michael J. Cassidy TOTAL PARTNERS' CAPITAL TOTAL LIABILITIES AND PARTNERS' CAPITAL See accompanying notes which are an integral part of this financial statement. 3 $ 150,573 1,016 35,095 1,900 73,578 75,000 23,500 229.320 589,902 990.106 1,500,00B 79,597 79.597 159.194 S1.739.202 G&C ASSOCIATES STATEMENT OF REVENUES AND EXPENSES - MODIFIED CASH BASIS (See Accountant'e Review Report) FOR THB YEAR ENDED DECEMBER 31, 1993 Continued OPERATING INCOME OTHBR INCOME (BXPENSBS) Dividend Income Miscellaneous Income Interest Income Loss from Dieposa1 of Leased Property Interest Bxpenee Unrealized Loss on Marketable Securities $ 147,230 OTHER EXPBNSB - NBT 164 10,727 1,573 o (12,365) 120.468) 120.369) S 126.861 NET INCOME See accompanying notes which are an integral part of this financial statement. S '. G&C ASSOCIATBS STATBMBNT OF CHANGBS IN PARTNBRS' CAPITAL - MODIFIBD CASH BASIS (See Accountant's Review Report) FOR THB YEAR BNDBD DBCBMBBR 31, 1993 H. Scott Michael J. Garlina Cassidv Total BALANCB AT JANUARY 1, 1993 $ 29,501 $ 29,501 $ 59,002 NBT INCOME 63,430 63,431 126,861 WITHDRAWALS 113.334) 113.335) /26.669) BALANCB AT DBCBMBBR 31, 1993 S 79.597 S 79.597 S159.194. See accompanying notes which are an integral part of this financial statement. 6 G&C ASSOCIATES NOTES TO FINANCIAL STATEMENTS (See Accountant's Review Report) DECEMBER 31, 1993 NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING The financial etatements are prepared on the modified cash basis of accounting. Consequently, except for revenues and expenses of construction contracts, revenues and the related aseets are recognized when received rather than in the period earned and expenses are recognized when paid rather than when the obligation is incurred. Revenues and expenses from construction contracts are recognized on the completed contract method. A contract is considered complete when all costs, except insignificant items, have been incurred and the installation is operating according to specifications or has been accepted by the customer. Thus, all revenues and expenditures are recognized when the contract has been completed even though the revenues have not been received or costs have not been paid. Consequently, accounts receivable-trade and accounts payable, if any, that are recorded would be those from completed construction contracts. DEPRECIATION The cost of buildings, vehicles, and equipment is being depreciated using the modified accelerated cost recovery system required by the Internal Revenue Service. This method differs from the generally accepted accounting principle of computing depreciation over the estimated useful lives of the assets. FEDERAL INCOME TAXES Federal income taxee are not payable by, or provided for the partnership. Partners are taxed individually on their share of partnership earnings. Partnership net revenue is allocated equally to the partners after allowing for partner guaranteed paymente. '. G&C ASSOCIATES NOTES TO FINANCIAL STATEMENTS (See Accountant's Review Report) DECEMBER 31, 1993 NOTE 2 - MARKETABLE EQUITY SECURITIES The partnership's portfolio of marketable equity securities is stated at the lower of aggregate cost (specific identification method) or market as followSI Aggregate cost of marketable equity securities $ 75,469 Less valuation allowance to reduce marketable securities to market 132.925) Marketable securities at lower of cost or market S 42.544 NOTE 3 - LAND AND CONSTRUCTION IN PROGRESS Land purchased through an agreement of sale is being developed by the partnership. The cost of the land, sewer, and roads and the construction in progress of the homes as of December 31, 1993 is as follows I Land, eewer, and roads Conetruction in progress Total land and construction in progress $669,305 24.010 S693.315 NOTE 4 - LAND PURCHASE On June 11, 1992, G&C entered into an agreement to purchase land referred to as the Asper farm. The terms of the agreement are for G&C to aseume $320,000 of debt, construct a $75,000 dwelling, and to make monthly payments of $1,700 beginning June 30, 2002 until $400,000 has been paid, approximately 235 months. The present value of all these payments using a 12\ capitalization rate is $448,458. The farm land was capitalized for $448,458 and corresponding liabilities were recorded to represent the liabilities explained above. 8 G&C ASSOCIATES NOTBS TO FINANCIAL STATBMENTS (See Accountant's Review Report) DECBMBBR 31, 1993 B 5 - ACCRUED INTBREST The terms of the mortgage on a condo in Topsail, North olina, include an interest rate of 10.25\ and monthly principal interest payments of $1,05B. Since April 1988, the partnership been making monthly payments of $500, resulting in an interest bility of $35,095 as of December 31, 1993. The unpaid interest coneidered for financial reporting purposes as additional rowing resulting in an increase in interest expense and responding increaee in accrued interest. E 6 - NOTB PAYJUBLE In connection with the purchase of the Asper Farm, G&C rowed $250,000 from a local bank. The terms of the demand loan tude interest at 9\. G&C is currently making monthly interest nente and is paying $2,500 of principal for each lot sold at Asper farm. As of December 31, 1993, the note payable balance ~229,320. ~ 7 - LONG-TERM OBLIGATIONS Maturities =ODertv Current Lonq-Term Total ! Ritner Highway (A) $ 2,890 $ 38,048 $ 40,938 ,lly pitcher H.i.ghway (B) 6,162 232,313 238,475 Ue Spring Avenue (C) 1,801 119,282 121,083 :ch 11214, Topsail, NC (D) 116,934 116,934 Itover (B) 752 67,225 67,977 :reet, firet mortgage (F) 6,368 313,632 320,000 :reet, second mortgage (G) 5,449 74,551 80,000 .and Valley Co-op loan (H) 53,208 53,208 .iability (I) 58,717 58,717 lles - capital..i.zed I obligation (J) 6,790 25,6D9 32,399 ,r loan (K) 583 583 : partner (L) 2.844 7.521 10.365 5150.573 5990.106 51.140.679 An adjustabl.e rate mortgage is collateralized by an apartment building at BOO-802 Ritner Highway. The interest rate is currently 6.0\, monthly principal and interest paymento are $439, and the remaining term of the mortgage is 10 years and 7 months. 9 G&C ASSOCIATES NOTES TO FINANCIAL STATEMENTS (See Accountant's Review Report) DECEMBER 31, 1993 NOTB 7 - LONG-TERM OBLIGATIONS (CONTINUED) (B) (C) (D) (E) A mortgage is collateralized by a professional office building at 9974 Molly pitcher Highway. The intereet rate is 8.50%, monthly principal and interest payments are $2,183, and the remaining term of the mortgage ie 17 years and 4 months. An adjustable rate mortgage is collateralized by an apartment building at 24 Middle Spring Avenue. The interest rate is currently 6.6%, monthly principal and interest payments are $1,047, and the remaining term of the mortgage is 26 years. A condo in Topsail, North Carolina is collateral for a mortgage. The terms of the mortgage call for an interest rate of 10.25% and its original five-year term ended July 1, 1991. Since April 1988, the partnership has been making mortgage payments of $500 per month, while the terms of the mortgage require payments of $1,D58 per month. Since the terms of the mortgage are not being met this loan is considered currently due. (F) G&C Associates has entered into an agreement to purchase a rental property. The agreement calls for a initial payment of $100, 48 monthly payments of $500, and a final payment of $65,900 on January 1, 1996. The present value of these payments using a 8% capitalization rate is $68,919. The property has been capitalized at $68,919 with the initial liability recorded at $68,819. At December 31, 1993 the present value of the remaining payments is $67,977 using a 8% capitalization rate. An adjustable rate mortgage is collateralized by a building at 12-16 E. King Street. The interest rate is currently 8.5%, monthly principal and interest payments are $2,777, and the remaining term of the mortgage is 30 years. A second mortgage collateralized by a building at 12-16 E. King Street. The interest rate ie currently 8.0%, monthly principal and interest payments are $971, and the remaining term of the mortgage is 10 years. G&C has entered into an agreement to purchase land called the Asper farm. The agreement calls for G&C to assume a loan payable of $74,000 to the Cumberland Valley Co-Operative Association. The terms of the loan call for no interest for three years and principal payments of $1000 for every lot sale. The present value of the loan at December 31, 1993 is $53,20B using a 10% capitalization rate. (G) (H) 10