HomeMy WebLinkAbout94-00688
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COMMONWEALTH OF
PENNSYLVANIA
OEPARTMENT OF REVENUE
OEPT 280601
HARRISBURG. PA 17128.Q601
REV-1500
INHERITANCE TAX RETURN
RESIDENT DECEDENT
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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
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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_~~_
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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
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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
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,. 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
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Decedent's Com lete Address:
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301 CHESTNUT CIRCLE
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SHIPPENSBURG
SIAlE
PA
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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.
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COIJ;IJ;OtM'E.Al TH Of PENtiSYl VA.NIA
ItltiERlTANCE fA.X RETURN
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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
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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,
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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
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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
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iii."
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a
Vi
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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: ?
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Slgnat r
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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
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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-
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CapacitYI Personal Representative
~ Counsel for personal
representative
(KAH: rmf! AMJ)
'.
. '
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.
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
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'*
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:~
,,~"-
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If'\
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tS:
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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
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Capacity: Personal Representative
~counsel for personal
representative
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... .. 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'~ \(1'1 l/
} No. }. 1_1l\~l/-6 ~ ~
Will No. Admin,
Pursuant to Rule 6,12 of the Supreme Court Orphans'
Court Rules, I report the following with respect to completion of
the administration of the above-captioned estate:
1.
State whether ~dministration of the estate is complete:
Yes No ^
2, I f the answer is No,
representative reasonabl~ believes
complete: MA'/ I) l'itn
3, I f the answer to No,
state when the personal
that the administration will be
1 is Yes, state the following:
a. Did the personal r~resentative file a final
account with the Court? Yes No~,
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b. The separate Orphans' Court No. (if any) for
the personal representative's account is:
c. Did the personal representative state an
account informally to the parties in interest? Yes)( No
d, Copies of receipts, releases, joinders and
approvals of formal or informal accounts may be filed with the
Cerk of the Orphans' Court and may be attached to this report,
Date: Lo ("Sf) ! q 6
sW4r~W~
SA L.L Y :::r W I IV \)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~ ,.} ~
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-. 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
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COMMONWEALT" OF PENNSYLVANIA. DlPARTMlNT OP' Hl!ALTH. VITAL RtCORDS
CERTIFICATE DF DEATH
(Coroner)
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s
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~ly 31.1994
ow _.." COW'IrltlltAUMI~H-----
,......u"""...,.""'Hichoel L. Norris, Coroner
\A 405 Fairway Drive
"N Mechanic.burg. Po. 17055
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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"
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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
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~
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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
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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
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,
I
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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
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.1
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~
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