HomeMy WebLinkAbout10-12-07
~.
15056041147
REV.1500 EX (06-05)
PA Department of Revenue
Bureau of Individual Taxes
PO BOX.280601
Harrisburg, PA 17128-0601
ENTER DECEDENT INFORMATION BELOW
Social Security Number Date of Death
OFFICIAL USE ONLY
..
County Code Year
INHERITANCE TAX RETURN 21 07
RESIDENT DECEDENT
File Number
0085
Date of Birth
161344493
01072007
03311942
Decedent's Last Name
Suffix
Decedent's First Name
JUDITH
MI
A
MCCLURE
(If Applicable) Enter Surviving Spouse's Information Below
Spouse's Last Name
Suffix
Spouse's First Name
MI
Spouse's Social Security Number
THIS RETURN MUST BE FILED IN DUPLICATE WITH THE
REGISTER OF WILLS
FILL IN APPROPRIATE OVALS BELOW
[!J 1. Original Return 0 2. Supplemental Return 0 3. Remainder Return (date of death
prior to 12-13-82)
0 4. Limited Estate 0 4a. Future Interest Compromise 0 5. Federal Estate Tax Return Required
(date of death afler 12-12-82)
[KJ 6. Decedent Died Testate 0 7. Decedent Maintained a Living Trust 2 8. Total Number of Safe Deposit Boxes
(Attach Copy of Will) (Attach Copy of Trust)
0 9. Litigation Proceeds Received 0 10 Spousal Poverty Credit (date of death 0 11. Election to tax under Sec. 9113(A)
. between 12-31-91 and 1-1-95) (Attach Sch. 0)
~ORRESPONDENT - THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO:
ame Daytime Telephone Number
PAUL A. LUNDBERG 7172733733
Firm Name (If Applicable)
REILLY, WOLFSON LAW OFFICE
REGISTER OF WILL:S USE ONLY
First line of address
1601 CORNWALL ROAD
Second line of address
City or Post Office
LEBANON
State
PA
DATE FILED
ZIP Code
17042
Correspondent's e-mail address:
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief,
it is true. correct and complete. Declaration of preparer other than the personal representative is based on all information of which preparer has any knowledge.
SIGNATURE 0": f'ERSO~ONSI~L1NG RETURN DATE
( v--L- I y- Christopher T. McClure / c! 41:7
ADDRESS I
oad, Mechanicsburg, PA 17055
REO ENTATIVE
/
DATE
Paul A. Lundberg
17042
L
Side 1
15056041147
15056041147
-.J
".
PA Inheritance Tax Return
Signature of Additional Fiduciaries
ESTATE OF
McClure, Judith A.
FILE NUMBER
21-07 -0085
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my
knowledge and belief, it is true, correct and complete. Declaration of preparer other than the personal representative is based on all information
of which preparer has any knowledge.
Signature #2
CG<---c^-)'-~-Y'\ . ~{~
Name
Address1
Address2
City, State, Zip
Allison M. Lesher
5009 Hart Crossing
Mechanicsburg, PA 17055
Date
/c/l/c7
I I
~.
15056042148
REV-1500 EX
Decedent's Name J u d it h A. M eel u r e
Decedent's Social Security Number
161344493
RECAPITULATION
1. Real Estate (Schedule A).......................................................................................... 1.
277,000.00
2. Stocks and Bonds (Schedule B)............................................................................... 2.
3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C).......... 3.
208,088.00
4. Mortgages & Notes Receivable (Schedule D).......................................................... 4.
5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E)................
5.
347,524.38
6. Jointly Owned Property (Schedule F) 0 Separate Billing Requested............. 6.
7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property
(Schedule G) 0 Separate Billing Requested............. 7.
988,975.32
1 , 821,587.70
48,470.77
199,538.43
248,009.20
1, 573,578.50
20,000.00
1 , 553,578.50
8. Total Gross Assets (total Lines 1-7)....................................................................... 8.
9. Funeral Expenses & Administrative Costs (Schedule H)......................................... 9.
10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I)................................ 10.
11. Total Deductions (total Lines 9 & 10)...................................................................... 11.
12. Net Value of Estate (Line 8 minus Line 11)............................................................. 12.
13. Charitable and Governmental Bequests/See 9113 Trusts for which
an election to tax has not been made (Schedule J)................................................. 13.
14. Net Value Subject to Tax (Line 12 minus Line 13)................................................. 14.
TAX COMPUTATION - SEE INSTRUCTIONS FOR APPLICABLE RATES
15. Amount of Line 14 taxable
at the spousal tax rate, of
transfers under Sec. 9116
(a)(1.2) X ~
16. Amount of Line 14 taxable
at lineal rate X .045
17. Amount of Line 14 taxable
at sibling rate X .12
18. Amount of Line 14 taxable
at collateral rate X .15
o . 0 0
o . 0 0
15.
16. 63,836.03
0.00
17.
18. 20,250.00
19. 84,086.03
1,418,578.50
135,000.00
19. Tax Due................................... .................................................. ............................ .....
20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT.
D
L
Side 2
15056042148
15056042148
--1
REV-15CO EX Page 3
'Decedent's Complete Address:
DECEDENT'S NAME
Judith A. McClure
STREET ADDRESS
5020 Kylock Road, Mechanicsburg
File Number 21-07 -00 8 5
CITY
STATE
Mechanicsburg
PA
17055
Tax Payments and Credits:
1. Tax Due (Page 1 Line 19)
2. Credits/Payments
A. Spousal Poverty Credit
B. Prior Payments
C. Discount
60,000.00
3,157.89
Total Credits (A + B + C)
3. Interest/Penalty if applicable
D. Interest
E. Penalty
Total Interest/Penalty (0 + E)
4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT.
Check box on Page 1 Line 20 to request a refund
5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE.
A. Enter the interest on the tax due.
8. Enter the total of Line 5 + 5A. This is the BALANCE DUE.
Make Check Payable to: REGISTER OF WILLS, AGENT
ZIP
(1 )
(2)
(3)
(4)
(5)
(5A)
(58)
84,086.03
63,157.89
20,928.14
20,928.14
PLEASE ANSWER THE FOllOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS
3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death?.........
4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which
contains a beneficiary designation?.... ...... ......................... .................................................................... .............. [!] 0
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN.
1. Did decedent make a transfer and:
a. retain the use or income of the property transferred;..................................................................................
b. retain the right to designate who shall use the property transferred or its income;....................................
c. retain a reversionary interest; or..................................................................................................................
d. receive the promise for life of either payments, benefits or care?..............................................................
2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without
receiving adequate consideration?...................... ....................... ..................................... ........ ............................
Yes
o
D
D
D
D
D
No
[!]
[!]
[!]
[!]
[!]
[!]
For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the
surviving spouse is three (3) percent [72 P.S. ~9116 (a) (1.1) (i)).
For dates of death on or after January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is zero
(0) percent [72 P.S. ~9116 (a) (1.1) (ii)]. The statute does not exempt a transfer to a surviving spouse from tax, and the statutory requirements
for disclosure of assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary.
For dates of death on or after July 1, 2000:
The tax rate imposed on the net value of transfers from a deceased child twenty-one years of age or younger at death to or for the use of a
natural parent, an adoptive parent, or a stepparent of the child is zero (0) percent [72 P.S. ~9116 (a) (1.2)].
The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is four and one-half (4.5) percent,
except as noted in 72 P.S. ~91161.2) [72 P.S. ~9116 (a) (1)).
The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is twelve (12) percent [72 P.S. ~9116 (a) (1.3)). A
sibling is defined under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption.
R~v-1502 EX+ (6-98)
*'
SCHEDULE A
REAL ESTATE
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
McClure, Judith A.
FILE NUMBER
21-07-0085
All real property owned solely or as a tenant In common must be reported at fair market value. Fair market value is defined as the price at which property would be
exchanged between a willing buyer and a willing seller. neither being compelled to buy or sell. both having reasonable knowledge of the relevant facts.
Real property which Is jolntly-owned with right of survivorship must be disclosed on schedule F.
ITEM
NUMBER
DESCRIPTION
VALUE AT DATE
OF DEATH
1
Real Estate - situate at 5020 Kylock Road, Lower Allen Township, Mechanicsburg,
Cumberland County, PA - value at date of death based upon attached appraisal
277.000.00
TOTAL (Also enter on Line 1, Recapitulation)
277 ,000.00
(If more space is needed. additional pages of the same size)
Copyright (c) 2002 form software only The Lackner Group, Inc.
Form PA-1500 Schedule A (Rev. 6-98)
R~v-1503 EX+ (6-98)
*'
SCHEDULE C
CLOSELY-HELD CORPORATION,
PARTNERSHIP OR
SOLE-PROPRIETORSHIP
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
McClure, Judith A.
FILE NUMBER
21-07 -0085
Schedule C-1 or C-2 (Including all supporting information) must be attached for each closely-held corporation/partnership interest of the decedent, other than
a sole-proprietorship. See instructions for the supporting information to be submitted for sole-proprietorships.
ITEM
NUMBER DESCRIPTION
1 148 shares of Class A voting shares of Rogele, Inc. - @ $1406.00 per share
VALUE AT DATE
OF DEATH
208.088.00
TOTAL (Also enter on Line 3, Recapitulation)
208.088.00
(If more space is needed, additional pages Df the same size)
Copyright (c) 2002 form software only The Lackner Group, Inc.
Form PA-1500 Schedule C (Rev. 6-98)
R~v.1508 EX+ (6-98)
.
SCHEDULE E
CASH, BANK DEPOSITS, & MISC.
PERSONAL PROPERTY
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
McClure, Judith A.
FILE NUMBER
21-07 -0085
Include the proceeds of litigation and the date the proceeds were received by the estate.
All property jolntly-owned with the right of survivorship must be. disclosed on schedule F.
ITEM VALUE AT DATE
NUMBER DESCRIPTION OF DEATH
1 Deferred Equity Golf Membership - The Desert Mountain Club - value at date of 260.000.00
death ($325,000.00 - less 20% transfer fee of $65,000.00) - see attached letter
2 Hematology & Medical Oncology - Refund of overpayment 2.643.21
3 Wachovia Bank - Certificate of Deposit No. 247402112434378 - balance at date of 6.262.70
death $6,258.31 - plus accrued interest of $4.39
4 Wachovia Bank - Checking Account No. 1010059558107 - balance at date of death 22.213.36
$22,212.13 - plus accrued interest of $1.23
5 Wachovia Bank - Checking Account No. 1010079640037 - balance at date of death 5.872.40
$5,871.64 - plus accrued interest of $.76
6 Wachovia Bank - Savings Account No. 3000043492038- balance at date of death 5.171.24
$5,170.39 - plus accrued interest of $.85
7 Ankle Bracelet - broken sterling silver ankle bracelet with gemstones - value at date 2.00
of death based upon attached appraisal
8 Black Pearl Earrings -14 karat yellow gold earrings with hanging round black 150.00
cultured pearl - value at date of death based upon attached appraisal
9 Bracelet - broken sterling silver bracelet with simulated gemstones - value at date 1.00
of death based upon attached appraisal
10 Charm - 14 karat yellow gold "Best Friend" charm- value at date of death based 7.00
upon attached appraisal
11 Charm Bracelet - 14 karat white gold charm bracelet with six gold charms and two 225.00
sterling silver charms - value at date of death based upon attached appraisal
Total of Continuation Schedules
See attached
paaes
TOTAL (Also enter on Line 5, Recapitulation)
347.524.38
(If more space is needed. additional pages of the same size)
Copyright (c) 2002 form software only The Lackner Group, Inc.
Form PA-1500 Schedule E (Rev. 6-98)
R~v.1508 EX+ (6-98)
.
SCHEDULE E
CASH, BANK DEPOSITS, & MISC.
PERSONAL PROPERTY
continued
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
McClure, Judith A.
FILE NUMBER
21-07-0085
ITEM
NUMBER
DESCRIPTION
VALUE AT DATE
OF DEATH
20
21
12
Cross - platimum cross with seventeen round brilliant cut diamonds - value at date
of death based upon attached appraisal
300.00
13
Diamond Ring - 14 karat yellow gold ladies ring with five round brilliant cut
diamonds - value at date of death based upon attached appraisal
150.00
14
Dome Ring - 14 karat yellow gold dome ring - value at date of death based upon
attached appraisal
25.00
15
Earrings - 14 karat yellow gold earrings with a hanging Amethysts pear shaped
gemstone- value at date of death based upon attached appraisal
30.00
16
Earrings - 14 karat yellow gold filigree design hoop earrings- value at date of death
based upon attached appraisal
30.00
17
Earrings - 14 karat yellow gold large oval earrings - value at date of death based
upon attached appraisal
45.00
18
Earrings - 14 karat yellow gold lever back earrings with diamonds and hanging tear
drop shaped blue topaz gemstone - value at date of death based upon attached
appraisal
100.00
19
Earrings -14 karat yellow gold lever back earrings with diamonds and hanging tear
drop shaped citrine gemstone - value at date of death based upon attached
appraisal
100.00
Eternity Ring - ladies platunum diamond eternity ring with round brilliant cut
diamonds - value at date of death based upon attached appraisal
325.00
Heart Pendant - 14 karat yellow gold pendant with an oval blue sapphire and four
round brillian cut diamonds- value at date of death based upon attached appraisal
1.200.00
Copyright (c) 2002 form software only The Lackner Group, Inc.
Form PA-1500 Schedule E (Rev. 6-98)
Rev-1508 EX+' (6-98)
*'
SCHEDULE E
CASH, BANK DEPOSITS, & MISC.
PERSONAL PROPERTY
continued
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
McClure, Judith A.
FILE NUMBER
21-07 -0085
ITEM
NUMBER
DESCRIPTION
VALUE AT DATE
OF DEATH
30
31
32
22
Hoop Earrings - 14 karat yellow gold hoop earrings - value at date of death based
upon attached appraisal
35.00
23
Locket - yellow non-gold locket - value at date of death based upon attached
appraisal
2.00
24
Masonic Ring - 14 karat two tone gold 32 degree Masonic ring - value at date of
death based upon attached appraisal
150.00
25
Mens Ring - 14 karat yellow gold 1964 West Point college ring - value at date of
death based upon attached appraisal
375.00
26
Miscellaneous Personal Property - Value at date of death based upon attached
appraisal
7.710.00
27
Necklace -10 karat yellow gold filigree design necklace with diamonds - value at
date of death based upon attached appraisal
35.00
28
Pocket Watch -14 karat white gold filled Illinois 17 jewel open face pocket watch _
value at date of death based upon attached appraisal
150.00
29
Rolex Watch -18 karat yellow gold Rolex wrist watch with diamond numerals _
value at date of death based upon attached appraisal
7.500.00
Tie-tac -14 karat yellow gold tie-tac with oval black star sapphire - value at date of
death based upon attached appraisal
40.00
Wedding Ring -14 karat yellow gold mens wedding ring - value at date of death
based upon attached appraisal
75.00
Smith Barney - Rogele, Inc. Retirement Account - 821.4917 units of Capital World Gr
& Inc. @ $1.96 per unit - Beneficiary: Estate of Judith A. McClure
1.613.36
Copyright (c) 2002 form software only The Lackner Group, Inc.
Form PA-1500 Schedule E (Rev. 6-98)
R~v-1508 EX+ (6-98)
.
SCHEDULE E
CASH, BANK DEPOSITS, & MISC.
PERSONAL PROPERTY
continued
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
McClure, Judith A.
FILE NUMBER
21-07 -0085
ITEM
NUMBER
DESCRIPTION
VALUE AT DATE
OF DEATH
33
Smith Barney - Rogele, Inc. Retirement Account - 1557.6194 units of Federated Kauf
Small Cap @ $1.28 per unit - Beneficiary: Estate of Judith A. McClure
1.998.80
34
Smith Barney - Rogele, Inc. Retirement Account - 4342.1176 units of Heritage Mid
Cap Stock @ $1.60 per unit - Beneficiary: Estate of Judith A. McClure
6.968.18
35
Smith Barney - Rogele, Inc. Retirement Account - 4903.5844 units of JPM Mid Cap
Value @ $1.86 per unit - Beneficiary: Estate of Judith A. McClure
9.159.65
36
Smith Barney - Rogele, Inc. Retirement Account - 5847.9325 units of Legg Mason
Value Trust @ $1.17 per unit - Beneficiary: Estate of Judith A. McClure
6.859.48
TOTAL (Also enter on Line 5, Recapitulation)
347.524.38
Copyright (c) 2002 form software only The Lackner Group, Inc.
Form PA-1500 Schedule E (Rev. 6-98)
Rev-1510 EX+ (6-98)
*'
SCHEDULE G
INTER-VIVOS TRANSFERS &
MISC. NON-PROBATE PROPERTY
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
McClure, Judith A.
FILE NUMBER
21-07 -0085
ESTATE OF
This schedule must be completed and filed ~ the answer to any of questions 1 through 4 on the reverse side of the REV-1500 COVER SHEET is yes.
ITEM DESCRIP IIUN OF PROPERTY DATE OF DEATH % OF DECO'S EXCLUSION TAXABLE
NUMBER INCLUDE NAME OF TRANSFEREE, THEIR RELATIONSHIP TO DECEDENT AND VALUE OF ASSET INTEREST (IF APPLICABLE) VALUE
THE DATE OF TRANSFER. ATTACH A COPY OF THE DEED FOR REAL ESTATE.
1 Wachovia Bank - Individual Retirement Account 47,263.97 47.263.97
No. 6518899811 - Money Market Fund -
Beneficiaries: see attached list
2 Wachovia Bank - Individual Retirement Account 50.179.81 50,179.81
No. 6518899811 - $50,000 Alabama Power Co @
$100.359625- Beneficiaries: see attached list
3 Wachovia Bank - Individual Retirement Account 626.39 626.39
No. 6518899811 - Accrued Dividend - $50,000
Alabama Power Co @$100.359625-
Beneficiaries: see attached list
4 Wachovia Bank - Individual Retirement Account 51.371.76 51,371.76
No. 6518899811 - $50,000 Anheuser Busch Co.,
Inc. @ $102.743525- Beneficiaries: see attached
list
5 Wachovia Bank - Individual Retirement Account 683.33 683.33
No. 6518899811 -Accrued Dividend - $50,000
Anheuser Busch Co., Inc. @ $102.743525-
Beneficiaries: see attached list
6 Wachovia Bank - Individual Retirement Account 50,000.43 50.000.43
No. 6518899811 - $50,000 Bear Stearns, Co, Inc.
@ $100.000850 - Beneficiaries: see attached list
7 Wachovia Bank - Individual Retirement Account 1,361.67 1.361.67
No. 6518899811 - Accrued Dividend - $50,000
Bear Stearns, Co, Inc. @ $100.000850-
Beneficiaries: see attached list
Total of Continuation Schedules See attached
pages
TOTAL (Also enter on Line 7, Recapitulation) 988.975.32
(If more space is needed, additional pages of the same size)
Copyright (c) 2002 form software only The Lackner Group, Inc.
Form PA-1500 Schedule G (Rev. 6-98)
Rev-1510 EX+ (6-98)
SCHEDULE G
INTER-VIVOS TRANSFERS &
MISC. NON-PROBATE PROPERTY
continued
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
McClure, Judith A.
FILE NUMBER
21-07 -0085
ITEM DESCRIPTION OF PROPERTY DATE OF DEATH % OF DECD'S TAXABLE
EXCLUSION
NUMBER INCLUDE NAME OF TRANSFEREE, THEIR RELATIONSHIP TO DECEDENT AND VALUE OF ASSET INTEREST (IF APPLICABLE) VALUE
THE DATE OF TRANSFER. ATTACH A COPY OF THE DEED FOR REAL ESTATE.
8 Wachovia Bank - Individual Retirement Account 52.808.34 52.808.34
No. 6518899811 - $50,000 Credit Suisse USA,
Inc. @ $105.616675 - Beneficiaries: see attached
list
9 Wachovia Bank - Individual Retirement Account 1.552.78 1.552.78
No. 6518899811 - Accrued Dividend - $50,000
Credit Suisse USA, Inc. @ $105.616675-
Beneficiaries: see attached list
10 Wachovia Bank - Individual Retirement Account 50.861.03 50.861.03
No. 6518899811 - $50,000 Merrill Lynch & Co.,
Inc. @ $101.722050 - Beneficiaries: see attached
list
11 Wachovia Bank - Individual Retirement Account 1.166.67 1.166.67
No. 6518899811 - Accrued Dividend - $50,000
Merrill Lynch & Co., Inc. @ $101.722050-
Beneficiaries: see attached list
12 Wachovia Bank - Individual Retirement Account 50.257.56 50.257.56
No. 6518899811 - $50,000 Target Corp @
$100.515125 - Beneficiaries: see attached list
13 Wachovia Bank - Individual Retirement Account 720.00 720.00
No. 6518899811 - Accrued Dividend - $50,000
Target Corp @ $100.515125 - Beneficiaries: see
attached list
Copyright (c) 2002 form software only The Lackner Group, Inc.
Form PA-1500 Schedule G (Rev. 6-98)
R~v-1510 EX+ (6-98)
.
SCHEDULE G
INTER-VIVOS TRANSFERS &
MISC. NON-PROBATE PROPERTY
continued
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
McClure, Judith A.
FILE NUMBER
21-07 -0085
ESTATE OF
ITEM DESCRIPTION OF PROPERTY DATE OF DEATH % OF DECD'S TAXABLE
EXCLUSION
NUMBER INCLUDE NAME OF TRANSFEREE, THEIR RELATIONSHIP TO DECEDENT AND VALUE OF ASSET INTEREST (IF APPLICABLE) VALUE
THE DATE OF TRANSFER. ATTACH A COpy OF THE DEED FOR REAL ESTATE.
14 Wachovia Bank - Individual Retirement Account 127.712.54 127.712.54
No. 6518899811 -12221.296 shares Evergreen
Select Fixed Income @ $10.45 - Beneficiaries:
see attached list
15 Wachovia Bank - Individual Retirement Account 114.49 114.49
No. 6518899811 - Accrued Dividend - 12221.296
shares Evergreen Select Fixed Income @ $10.45
- Beneficiaries: see attached list
16 Wachovia Bank - Individual Retirement Account 34.181.21 34.181.21
No. 6518899811 - 3380.930586 shares Evergreen
Select Fixed Income @ $10.11 - Beneficiaries:
see attached list
17 Wachovia Bank - Individual Retirement Account 31.62 31.62
No. 6518899811 - Accrued Dividend -
3380.930586 shares Evergreen Select Fixed
Income @ $10.11 - Beneficiaries: see attached
list
18 Wachovia Bank - Individual Retirement Account 9.346.19 9.346.19
No. 6518899811 - 325 shares Alcoa, Inc. @
$28.75 - Beneficiaries: see attached list
19 Wachovia Bank - Individual Retirement Account 49.941.26 49.941.26
No. 6518899811 - 5049.672639 shares Pimco Fds
Pac Invt Mgmt Ser @ $9.89 - Beneficiaries: see
attached list
Copyright (c) 2002 form software only The Lackner Group, Inc.
Form PA-1500 Schedule G (Rev. 6-98)
R,v-1510 EX+ (6-98)
*'
SCHEDULE G
INTER-VIVOS TRANSFERS &
MISC. NON-PROBATE PROPERTY
continued
COMMONWEALTH OF PENNSVLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
McClure, Judith A.
FILE NUMBER
21-07 -0085
ESTATE OF
ITEM DESCRIPTION OF PROPERTY DATE OF DEATH % OF DECD'S TAXABLE
EXCLUSION
NUMBER INCLUDE NAME OF TRANSFEREE, THEIR RELATIONSHIP TO DECEDENT AND VALUE OF ASSET INTEREST (IF APPLICABLE) VALUE
THE DATE OF TRANSFER. ATTACH A COPY OF THE DEED FOR REAL ESTATE.
20 Wachovia Bank - Individual Retirement Account 10.716.38 10.716.38
No. 6518899811 - 150 shares Amgen, Inc. @
$71,4425 - Beneficiaries: see attached list
21 Wachovia Bank - Individual Retirement Account 15.979.50 15.979.50
No. 6518899811 - 300 shares Bank of America
Corporation @ $53.265 - Beneficiaries: see
attached list
22 Wachovia Bank - Individual Retirement Account 12.599.25 12.599.25
No. 6518899811 - 300 shares Hewlett Packard
Co. @ $41.9975 - Beneficiaries: see attached list
23 Wachovia Bank - Individual Retirement Account 9.203.50 9.203.50
No. 6518899811 - 200 shares Illinois Tool Wks,
Inc. @ $46.0175 - Beneficiaries: see attached list
24 Wachovia Bank - Individual Retirement Account 42.00 42.00
No. 6518899811 - Accrued Dividend - 200 shares
Illinois Tool Wks, Inc. @ $46.0175 - Beneficiaries:
see attached list
25 Wachovia Bank - Individual Retirement Account 4.799.40 4.799.40
No. 6518899811 - 228 shares Intel Corp @ $21.05
- Beneficiaries: see attached list
26 Wachovia Bank - Individual Retirement Account 9.563.00 9.563.00
No. 6518899811 - 200 shares JP Morgan Chase
& Co. @ $47.815 - Beneficiaries: see attached
list
Copyright (c) 2002 form software only The Lackner Group, Inc.
Form PA-1500 Schedule G (Rev. 6-98)
R~v.1510 EX+ (6-98)
*'
SCHEDULE G
INTER-VIVOS TRANSFERS &
MISC. NON-PROBATE PROPERTY
continued
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
McClure, Judith A.
FILE NUMBER
21-07 -0085
ESTATE OF
ITEM DESCRIPTION OF PROPERTY DATE OF DEATH % OF DECD'S EXCLUSION TAXABLE
NUMBER INCLUDE NAME OF TRANSFEREE, THEIR RELATIONSHIP TO DECEDENT AND VALUE OF ASSET INTEREST (IF APPLICABLE) VALUE
THE DATE OF TRANSFER ATTACH A COPY OF THE DEED FOR REAL ESTATE.
27 Wachovia Bank - Individual Retirement Account 68.00 68.00
No. 6518899811 - Accrued Dividend - 200 shares
JP Morgan Chase & Co. @ $47.815-
Beneficiaries: see attached list
28 Wachovia Bank - Individual Retirement Account 8.329.69 8.329.69
No. 6518899811 - 125 shares Johnson &
Johnson @ $66.6375 - Beneficiaries: see
attached list
29 Wachovia Bank - Individual Retirement Account 10.695.50 10.695.50
No. 6518899811 - 200 shares Medtronic, Inc. @
$53.4775 - Beneficiaries: see attached list
30 Wachovia Bank - Individual Retirement Account 5.941.50 5.941.50
No. 6518899811 - 200 shares Microsoft Corp.
@ $29.7075 - Beneficiaries: see attached list
31 Wachovia Bank - Individual Retirement Account 8.822.49 8.822.49
No. 6518899811 - 500 shares Oracle Corp. @
$17.644975- Beneficiaries: see attached list
32 Wachovia Bank - Individual Retirement Account 6.301.25 6.301.25
No. 6518899811 - 100 shares Pepsico, Inc. @
$63.0125- Beneficiaries: see attached list
33 Wachovia Bank - Individual Retirement Account 5.740.00 5.740.00
No. 6518899811 - 100 shares Target Cpr. @
$57.40- Beneficiaries: see attached list
Copyright (c) 2002 form software only The Lackner Group, Inc,
Form PA-1500 Schedule G (Rev, 6-98)
R~V.1510 EX+ (6-981
SCHEDULE G
INTER-VIVOS TRANSFERS &
MISC. NON-PROBATE PROPERTY
continued
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
McClure, Judith A.
FILE NUMBER
21-07 -0085
ESTATE OF
ITEM DESC;;RIPTION OF PROPERTY DATE OF DEATH % OF DECD'S EXCLUSION TAXABLE
NUMBER INCLUDE NAME OF TRANSFEREE, THEIR RELATIONSHIP TO DECEDENT AND VALUE OF ASSET INTEREST (IF APPLICABLE) VALUE
THE DATE OF TRANSFER. ATTACH A COPY OF THE DEED FOR REAL ESTATE.
34 Wachovia Bank - Individual Retirement Account 7.424.75 7.424.75
No. 6518899811 - 100 shares United Parcel
Service, Inc. @ $74.2475- Beneficiaries: see
attached list
35 Wachovia Bank - Individual Retirement Account 38.711.09 38.711.09
No. 6518899811 - 2143.471 shares Artisan Fds,
Inc. @ $18.060- Beneficiaries: see attached list
36 Wachovia Bank - Individual Retirement Account 31.697.07 31.697.07
No. 6518899811 - 822.873 shares Davis NY
Venture Fd, Inc. @ $38.52- Beneficiaries: see
attached list
37 Wachovia Bank - Individual Retirement Account 32.651.31 32.651.31
No. 6518899811 - 972.344 shares Harbor Fd @
$33.58 Beneficiaries: see attached list
38 Wachovia Bank - Individual Retirement Account 40.612.90 40.612.90
No. 6518899811 - 1939.489 shares Harbor Fd @
$20.94 - Beneficiaries: see attached list
39 Wachovia Bank - Individual Retirement Account 22.094.87 22.094.87
No. 6518899811 - 745.441 shares WT Mutual
Fund @ $29.64 - Beneficiaries: see attached
list
40 Wachovia Bank - Individual Retirement Account 20.620.65 20.620.65
No. 6518899811 - 668.85 shares Wells Fargo @
$30.83 - Beneficiaries: see attached list
Copyright (c) 2002 form software only The Lackner Group, Inc,
Form PA-1500 Schedule G (Rev. 6-98)
~ev.1510 EX+ (6-98)
.
SCHEDULE G
INTER-VIVOS TRANSFERS &
MISC. NON-PROBATE PROPERTY
continued
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
McClure, Judith A.
FILE NUMBER
21-07 -0085
ESTATE OF
ITEM DESCRIPTION OF PROPERTY DATE OF DEATH % OF DECD'S TAXABLE
EXCLUSION
NUMBER INCLUDE NAME OF TRANSFEREE, THEIR RELATIONSHIP TO DECEDENT AND VALUE OF ASSET INTEREST (IF APPLICABLE) VALUE
THE DATE OF TRANSFER. ATTACH A COpy OF THE DEED FOR REAL ESTATE.
41 Wachovia Bank - Individual Retirement Account 106.158.17 106.158.17
No. 6518899811 - 4593.603 shares Delaware
Pooled Tr @ $23.11- Beneficiaries: see attached
list
42 Wachovia Bank - Individual Retirement Account 22.00 22.00
No. 6518899811 - Accrued Dividend - 200 shares
Medtronic, Inc. @ $53.4775 - Beneficiaries: see
attached list
TOTAL (Also enter on Line 7, Recapitulation) 988.975.32
Copyright (c) 2002 form software only The Lackner Group, Inc.
Form PA-1500 Schedule G (Rev. 6-98)
REV-1151 EX~ (12-99)
*'
SCHEDULE H
FUNERAL EXPENSES &
ADMINISTRATIVE COSTS
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
McClure, Judith A.
FILE NUMBER
21-07 -0085
Debts of decedent must be reported on Schedule I.
ITEM DESCRIPTION AMOUNT
NUMBER
A. FUNERAL EXPENSES:
See continuation schedule(s) attached 14,536.84
B. ADMINISTRATIVE COSTS:
1. Personal Representative's Commissions
Social Security Number(s) I EIN Number of Personal Representative(s):
Street Address
City State Zip
-
Year(s) Commission paid
2. Attorney's Fees Reilly, Wolfson, Sheffey, Schrum and Lundberg LLP 21,000.00
3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation)
Claimant
Street Address
City State Zip
Relationship of Claimant to Decedent
4. Probate Fees 360.00
5. Accountant's Fees
6. Tax Return Preparer's Fees
7. Other Administrative Costs 12,573.93
See continuation schedule(s) attached
TOTAL (Also enter on line 9, Recapitulation) 48,470.77
Copyright (c) 2002 form software only The Lackner Group, Inc.
Form PA-1500 Schedule H (Rev. 6-98)
R,ev-1502 EX+ (6-98)
*'
SCHEDULE H-A
FUNERAL EXPENSES
continued
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
McClure, Judith A.
FILE NUMBER
21-07 -0085
ESTATE OF
ITEM
NUMBER
DESCRIPTION
AMOUNT
1
JDK Catering, Inc. - Funeral Luncheon
13.862.84
2
W. Orville Kimmel Funeral Home, Inc. - Funeral Expenses
674.00
Subtotal
14.536.84
Copyright (c) 2002 form software only The Lackner Group, Inc,
Form PA-1500 Schedule H-A (Rev, 6-98)
~ev-1502 EX+ (6-98)
*'
SCHEDULE H-87
OTHER
ADMINISTRATIVE COSTS
continued
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
McClure, Judith A.
FILE NUMBER
21-07 -0085
ESTATE OF
ITEM
NUMBER
DESCRIPTION
AMOUNT
1
Boles, Metzger Brosius & Ritter - Fee for preparation of Date of Death Valuation of
stock of Rogele, Inc.
7.500.00
2
Cumbeland Law Journal - Advertise Estate Notice
75.00
3
Elmer Murry Auctions, Inc. - Appraisal Fee
370.00
4
Fennemore Craig - Legal Services re: Deferred Equity Golf Membership - The
Desert Mountain Club, AZ
963.30
5
Fennemore Craig - Legal Services re: Deferred Equity Golf Membership - The
Desert Mountain Club, AZ
3.183.60
6
John Thomasco - Appraisal Fee
295.00
7
Register of Wills - Letters of Exemplification
40.00
8
Register of Wills - Short Certificates
10.00
9
The Sentinel - Advertise Estate Notice
137.03
Subtotal
12.573.93
Copyright (c) 2002 form software only The Lackner Group, Inc.
Form PA-1500 Schedule H-B7 (Rev. 6-98)
~ev.1512 EX~ (6.98)
*'
SCHEDULE I
DEBTS OF DECEDENT,
MORTGAGE LIABILITIES, & LIENS
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
McClure, Judith A.
FILE NUMBER
21-07 -0085
Include unrelmbursed medical expenses.
ITEM VALUE AT DATE
NUMBER DESCRIPTION OF DEATH
1 Brigham Women's Hospital - Medical Expense 5.146.94
2 BWPO-DBA Department of Surgery - Medical Expense 823.26
3 Medical Bureau of Economics - Medical Expenses 4.187.28
4 Medical Expenses - Costs advanced by Christopher McClure for home nursing care 17,821.00
- see attached
5 PA Department of Revenue - 2006 Individual Income Tax 75.00
6 PA Department of Revenue - 2006 Individual Income Tax (PA 41-V) 89.00
7 United States Treasury - 2006 Individual Income Tax 23.236.00
8 Wachovia Bank - Consumer Loan No. 320801000405396 - Balance due at date of 148.131.20
death - see attached letter
9 WESTAB - 2006 Local Earned Income Tax 28.75
TOTAL (Also enter on Line 10, Recapitulation)
199,538.43
. (If more space is needed, additional pages of the same size)
Copyright (c) 2002 form software only The Lackner Group, Inc.
Form PA-1500 Schedule I (Rev. 6-98)
REV 1513 EX+ (9-00)
*'
SCHEDULE ..
BENEFICIARIES
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
FILE NUMBER
21-07 -0085
NUMBER
McClure, Judith A.
NAME AND ADDRESS OF
PERSON(S) RECEIVING PROPERTY
TAXABLE DISTRIBUTIONS [include outright spousal
distributions, and transfers
under Sec. 9116(a)(1.2)]
RELATIONSHIP TO
DECEDENT
Do Not List Trustee/s)
SHARE OF ESTATE AMOUNT OF ESTATE
(Words) ($$$)
I.
See attached schedule
Total
Enter dollar amounts for distributions shown above on lines 15 through 18, as appropriate, on Rev 1500 cover sheet
II. NON-TAXABLE DISTRIBUTIONS:
A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT
BEING MADE
B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS
See continuation schedule(s) attached
TOTAL OF PART 11- ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET
Copyright (c) 2002 form software only The Lackner Group, Inc.
20,000.00
Form PA-1500 Schedule J (Rev. 6-98)
20,000.00
SCHEDULE J
BENEFICIARIES
(Part I, Taxable Distributions)
ESTATE OF:
Judith A. McClure 161-34-4493 01/07/2007
Item Name and Address of Person(s) Share of Estate Amount of Estate
Number Receiving Property Relationship (Words) ($$$)
1 Jennifer R. Mathias Daughter 1/4th of the residue
1316 Mountain Laurel Circle of the Wachovia
Harrisburg, PA 17110 Bank - IRA
2 Christopher T. McClure & Allison M. Daughter 1/4th of the
Lesher, Trustees of Jennifer R. Residuary Estate
Mathias Trust
5016 Kylock Road
Mechanicsburg, PA 17055
3 Tobi Gamble Friend Specific Bequest of
9583 Cordova Drive $10,000 from
Highlands Ranch, CO 80130 Wachovia Bank - IRA
Account
4 Brian & Penny Hood Friend Specific Bequest of
335 Cragmoorr Road $40,000 from
York Haven, PA 17370 Wachovia Bank - IRA
Account
5 Joanne Hood Friend Specific Bequest of
636 State Street $10,000 from
Lemoyne, PA 17043 Wachovia Bank - IRA
Account
6 Judy Jaxtheimer Friend Specific Bequest of
HC83 Box 30A $50,000 from
Neely ton, PA 17239 Wachovia Bank - IRA
Account
7 Michele A. Jones Friend Specific Bequest of
330 South Washington Street $25,000 from
Mechanicsburg, PA 17055 Wachovia Bank - IRA
Account
8 Allison M. Lesher Daughter 1/4th ofthe
5009 Hart Crossing Residuary Estate &
Mechanicsburg, PA 17055 1/4th of the residue
of the Wachovia
Bank IRA
1
SCHEDULE J
BENEFICIARIES
(Part I, Taxable Distributions)
ESTATE OF:
Judith A. McClure 161-34-4493 01/07/2007
Item Name and Address of Person(s) Share of Estate Amount of Estate
Number Receiving Property Relationship (Words) ($$$)
9
Christopher T. McClure
5016 Kylock Road
Mechanicsburg, PA 17055
Son
Real Estate, 1/4th of
the Residuary Estate,
stock of Rogele, Inc. ,
1/4th of the residue
of the Wachovia
Bank IRA & Deferred
Equity Golf
Membership
10
James R. McClure
836 Rudy Town Road
New Cumberland, PA 17070
Son
1/4th of the
Residuary Estate &
1/4th of the residue
of the Wachovia
Bank IRA
Total
2
.
SCHEDULE J-IIB
CHARITABLE AND GOVERNMENTAL
DISTRIBUTIONS
continued
Rev-1502 EX+ (6-98)
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
McClure, Judith A.
FILE NUMBER
21-07 -0085
ITEM
NUMBER
DESCRIPTION
AMOUNT
1
West Shore Evangelical Free Church -1345 Williams Grove Road, Mechanicsburg,
PA 17055 -Specific Bequest of $15,000.00 from Wachovia Bank IRA Account
15.000.00
2
West Shore Evangelical Free Church -1345 Williams Grove Road, Mechanicsburg,
PA 17055 _ Specific Bequest of $5,000.00 from Wachovia Bank IRA Account
5.000.00
Subtotal
20.000.00
Copyright (c) 2002 form software only The Lackner Group, Inc.
Form PA-1500 Schedule J-IIB (Rev. 6-98)
Rogele, Inc.
Property Summary
1/7/2007
Common Fair
Assessed Level Market
Value Ratio Value
1031 Girard 8t. 123,100 1.365 1 E38,032
2127 Greenwood 8t. 94,800 1.365 129,402
1 013 S. 21st 8t. 17,500 1.365 23,888
1016 Girard 8t. 18,800 1.365 25,662
1018 Girard 8t. 27,000 1.365 :36,855
1024 Girard 8t. 12,100 1.365 16,517
1028 Girard 8t. 308,500 1.365 4:21,103
1 027 Girard 8t. 78,800 1.365 107,562
1035 Girard 8t. 227,500 1.365 310,538
Old York Rd 313,400 1.180 369,812
Land 3 Acres 51,580 1.180 60,864
1,273,080 1,670,233
ESTATE OF JUDITH A. MCCLURE
ROGELE, INC.
voting Non-Voting Total
Shareholders Stock Stock Shares
Judy R. McClure 148 0 148
James R. McClure IV 8 644 652
Christopher T. McClure 8 644 652
Jennifer R. McClure 0 652 652
Allison M. McClure 0 652 652
Totals 164 2,592 2,756
ROGELE, INC.
VALUATION OF COMMON STOCK
JANUARY 7,2007
ROGELE, INC.
VALUATION OF COMMON STOCK
JANUARY 7, 2007
CONTENTS
Valuation report
Pages 1 - 54
Summary
Schedule 1
Adjusted book value method:
Computation of indicated value
Schedule 2
Income method:
Computation of indicated value
Schedule 3
Formula method:
Computation of indicated value
Sched u Ie 4
Computation of goodwill
Schedule 5
Multiple of net income method:
Computation of indicated value
Schedule 6
Summary of balance sheets
Exhibit 1
Summary of statements of operations
Exhibit 2
Computation of capitalization rate
Exhibit 3
Computation of adjusted net income
Exhibit 4
Officers' compensation adjustment
Exhibit 5
Allocation of indicated value between common voting and
common non-voting shares
. Exhibit 6
BOLES METZGER
WILLIAM B. BOLES, CPAlABV, ASA, CFP
GARY G. GROVE, CPA (RETIRED)
BRIAN J. METZGER, CPA
BRENT W. EMRICK, CPAlABV, CFP, MBA
THEODORE D. BROSIUS, CPA
LISA A. RITTER, CPA, CFE
CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS
3601 N. FRONT STREET
HARRISBURG, PA 17110
PHONE: (717) 238-0446
FAX: (717) 238-3960
www.bmbrcna.com
MEMBERS
AMERICAN AND PENNSYLVANIA INSSTITUTES
OF CERTIFIED PUBLIC ACCOUNTANTS
CPASNET.COM
August 17, 2007
Estate of Judy McClure
Christopher 1. McClure and Allison M. Lesher, Executors
1025 S 21st Street
PO Box 1757
Harrisburg, PA 17105
We have been requested to estimate the value of 148 Class A voting shares of the common
stock of Rogele, Inc. (also referred to in this report as the "Company") as of January 7,2007,
on a controlling interest basis, for the Estate of Judy McClure. This report has been prepared
specifically for this purpose and cannot be used for any other purposes.
We have prepared this estimate of value on the presumption that value is equivalent to "fair
market value" and that "fair market value" is that price at which a willing buyer will buy and a
willing seller will sell an item of property, in an arms-length transaction with neither one being
under any compulsion to buy or sell, and with both having reasonable knowledge of all
relevant facts. Therefore, we do not represent that our estimate of the common stock value
would be the amount ultimately so determined in actual bargaining or litigation.
Based on the information contained in the following narrative report, in our opinion, the fair
market value of 148 Class A voting shares of Rogele, Inc., for the Estate of Judy McClure, on
a controlling interest basis, as of January 7,2007, as shown on Schedule 1 after a discount
for lack of marketability is $208,088.
Our opinion of value is subject to the assumptions and limiting conditions set forth in this
report.
Respectfully submitted,
~P'~CPk~~~ A5A-
William B. Boles, CPAJABV, ASA
Boles Metzger Brosius & Ritter PC
Assumptions and Limiting Conditions
a. The conclusion of value arrived at herein is valid only for the stated purpose as of the
valuation date.
b. Financial statements and other related information provided by Rogele, Inc. or its
representatives in the course of this study have been accepted, without any verification,
as fully and correctly reflecting the Company's business conditions and operating
results for the respective periods, except as specifically noted herein.
c. Public information and industry and statistical information have been obtained from
sources we deem to be reputable; however, we make no representation as to the
accuracy or completeness of such information, and have accepted the information
without any verification.
d. The conclusion of value arrived at herein is based on the assumption that the current
level of management expertise and effectiveness would continue to be maintained and
that the character and integrity of the Company through any sale, reorganization,
exchange, or diminution of management's participation would not be materially or
significantly changed.
e. This report and the conclusion of value arrived at herein are for the exclusive use of our
client for the sole and specific purposes as noted herein. Furthermore, the report and
conclusion of value are not intended by the author, and should not be construed by the
reader, to be investment advice in any manner whatsoever. The conclusion of value
represents the considered opinion of Boles Metzger Brosius & Ritter PC, based on
information furnished by Rogele, Inc. and other sources.
f. Neither all nor any part of the contents of this report should be disseminated to the
public through advertising media, public relations, news media, sales media, mail, direct
transmittal, or any other means of communication, without the prior written approval of
Boles Metzger Brosius & Ritter PC.
g. Future services regarding the subject matter of this report, including, but not limited to,
testimony or attendance in court, shall not be required of Boles Metzger Brosius &
Ritter PC, unless previous arrangements have been made in writing.
h. Boles Metzger Brosius & Ritter pC is not an environmental consultant, and takes no
responsibility for any actual or potential environmental liabilities. Any person entitled to
rely on this report wishing to know whether such liabilities exist, or their scope, and the
effect on the value of the property is encouraged to obtain a professional environmental
assessment. Boles Metzger Brosius & Ritter PC does not conduct or provide
environmental assessments and has not performed one for the subject property.
I. Boles Metzger Brosius & Ritter PC has not made a specific compliance surveyor
analysis of the subject property to determine whether it is subject to or in compliance
with the Americans with Disabilities Act of 1990 (ADA) and this valuation does not
consider the effect, if any, of noncompliance.
2
Economic Outlook
THE NATIONAL ECONOMIC REVIEW
Fourth Quarter 2006
General Economic Overview
According to advance estimates released by the Department of Commerce's Bureau of
Economic Analysis, Real Gross Domestic Product (uGDP"), the output of goods and
services produced by labor and property located in the Uneited States, increased at an
annualized rate of 3.5% during the fourth quarter of 2006. This is the twenty-first
consecutive quarterly rise in GDP subsequent to the 2001 recession, and compares to a
revised increase of 2.0% in the third quarter of 2006. GDP growth in the fourth quarter was
greater than that anticipated by economists. Favorable growth in the fourth quarter is
attributed to lower fuel prices, rising income, a buoyant stock market, and favorable foreign
trade factors. Strong consumer spending served to offset a drop in business capital
investment. Additionally, some economists postulate that unusually warm weather during
the quarter led to higher construction activity than would have been evidenced with more
normal seasonal temperatures.
Percentage Annualized Growth in Real Gross Domestic Product (GDP)
Department of Commerce
8.6%
7.6% AnnuaJRates_ AnnuBlizedQuarterlyRates r:=:::::::J
6.6%
6.6DIa _._..~-_._._-_.__._----------------_._~--_._._..__._---.--.-.-..------....-.-.~----...-- -------____..____._.._...m..___________..________.__ ....._________m__.
4.6D/o ......------.---
--.---......-----------------.-------.-..-----. ...---.----------.---.------.-.------.-----..-.--...- --.--.---...- "-..---
3.6% -.
2.6%
1.6-10
0.6%
.0.6%
.1.6%
~~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~~
~~~~~~~~~-~ ~~ ~- -- -~ ~~ ~
The growth in real GDP in the fourth quarter reflected increases in personal consumption
expenditures ("PCE"), exports, state and local government spending, and federal spending.
These factors were partly offset by a negative contribution from residential fixed
investment, and private inventory investment. Economists note that GDP for all of 2006
grew 3.4%, up slightly from the 3.2% in 2005. Fourth quarter GDP growth was greater than
economist expectations of approximately 2.5%. Economists predict GDP growth on the
order of 2.3% to 2.7% for the first quarter of 2007. After the first quarter, growth is
expected to rise slowly back to the long term trend of approximately 2.8% to 3.1 %.
Although economists remain concerned about the possibility of the current slowdowns in
housing and manufacturing spreading further, the panel of 60 economists forecasted by
the Wall Street Journal, are generally optimistic about the economy's prospects in 2007.
3
THE NATIONAL ECONOMIC REVIEW
Fourth Quarter 2006
(Continued)
General Economic Overview (continued)
At its December meeting, the Fed held the federal funds rate and the discount rate steady
at 5.25% and 6.25%, respectively, after a similar move at its October meeting. Following a
deliberate period of rate increases to achieve a neutral policy position, the Fed has elected
to keep rates steady over the past two quarters, given a pronounced cooling in economic
growth. However, possible increases in resource utilization could potentially further
inflation. The September statement pointed out that readings on core inflation have been
elevated in recent months and that the high levels of resource utilization, could potentially
sustain inflation pressures. However, inflation pressures seem likely to moderate over
time, reflecting reduced impetus from energy prices, contained inflation expectations, and
the cumulative effects of monetary policy actions and other factors restraining aggregate
demand.
The Conference Board (UTCB") reported that the Composite Index of Leading Economic
Indicators ("LEI"), the government's primary forecasting gauge, increased 0.3% in
December to 138.0 after a decrease of 0.1 % in October and remaining flat in November
(all figures recently revised). The index attempts to gauge economic activity six to nine
months in advance. Multiple consecutive moves in the same direction are said to be
indicative of the general direction of the economy. Six of the ten leading economic
indicators rose during December. Positive contributors to the LEI (largest to smallest)
included building permits, average weekly initial claims for unemployment insurance, real
money supply, stock prices, vendor performance, and manufacturers' new orders for
nondefense capital goods. Collectively, these positive contributions to the LEI eclipsed the
negative contributions which included interest rate spread and index of consumer
expectations. Average weekly manufacturing hours and manufacturers' new orders for
consumer goods and materials remained flat in December. In December, the Coincident
Index increased 0.2% and the Lagging Index increased 0.9%. The LEI suggests that
economic growth should continue at a modest rate.
142
139
136
133
130
127
124
121
118 "
116
112
109
106
103 "
100
97
94
91
88
Trends In Leading, Coincident, and Lagging Econorric Indicators
The Conference Board
J x~~x~x~
J.~ _:'It.'ll'.x.x,x:.x'~.~.~
.:P: ~_
iii1o:.X~!~~iiii,.""'>:":'''''''':O:X::i:i:'''j:XXi:j:.:t.''''''"iiix.xiii"iiiiiiiii:i::i::O::i::XiiiXiiiXiiixiii~.iii~~~"''''...............m........... .".. .....m."............mm ...............".....
,
,
I
I....
,
,--...
I
i I ".a;::,'QQ!
,
.-.. i
I I I I II I 1111"
.., "" In N r.D
In In In I:) C
In en In Co 0
.... ... ... N IN
~ ~ g
C. "5 i
0( .., 0
I J' I III J J 1 I
~ ~ ~ ~
:- ~ 0 .!;
I II J I II I I I J J I I J II J I III I II J I 1 II
~~!~~~~~~~~
:';o~:';o.!f:'::o
I II II
9
~
I I J J-+--+--+-l
~ ~
9 9
;; 't;
.., 0
Indices @ 1996 = 100
...........- Leading Indicators -0- Coincident Indicators _):_ Lagging Indicators
Annualt-kasures Reflect Average of Lbnlhly Results tor Each Year Shown
4
THE NATIONAL ECONOMIC REVIEW
Fourth Quarter 2006
(Continued)
General Economic Overview (continued)
Although 2006 economic growth was generally positive, 2006 growth represents a
slowdown relative to 2004 and 2005 levels, especially considering the deceleration
reflected in third quarter GDP measures. According to a monthly survey of over 50
forecasters polled by The Wall Street Journal, GDP is projected to grow 2.3% for the first
half of 2007 and 2.8% in the second half. These modest growth figures are expected to be
at least partially due to a continuation, albeit more modest, of the decline in the housing
sector which began in 2006. A weaker housing market, as well as decreased real estate
values, have the potential to dampen home-equity financed consumer spending, reduce
construction activity, and lead to job losses in the construction industry. However, most
economists feel that as the housing weakness abates and the Federal Reserve possibly
lowers interest rates, manufacturing will rebound in 2007. The service sector of the
economy is booming with restaurants, hospitals, software makers, and consulting firms
growing and hiring. The strength in the service sector is expected to keep the job market
relatively healthy, despite the large job losses in housing-related industries seen from May
through November.
Consumer Spending and Inflation
According to the Bureau of Labor Statistics, the Consumer Price Index ("CPI") increased
0.1 % to 201.8 in December (CPI -U all urban consumers, 1982-1984 = 100, before
seasonal adjustment). The seasonally adjusted annual rate ("SAAR") of inflation for the
fourth quarter of 2006 was 0.2%, compared to changes of 4.3%, 5.1 %, and 0.8%
respectively, for the first three quarters of 2006. For the twelve month period ended in
December 2006, inflation rose 2.5% compared to a 3.4% rise in 2005 and a 3.3% rise in
2004. The 3.4% increase in 2005 represented the largest increase in consumer prices
since a similar increase in 2000.
The index for energy increased 4.6% in December, following decreases of 7.0% and 0.2%
in October and November, respectively. The energy index increased 2.9% in 2006
compared to much larger increases of 17.1% during 2005 and 16.6% in 2004. Seasonal
oil price increases during 2005 were compounded by hurricanes Rita and Katrina as
drilling, pumping, and production activity were significantly curtailed.
The core rate of inflation, which excludes food and energy, rose at a 1.4% (SAAR) during
the fourth quarter of 2006 following increases of 2.8%, 3.6%, and 2.7% for the first three
quarters of 2006, respectively. In 2006, the core rate of inflation advanced 2.6% compared
to 2.2% rises in 2004 and 2005. The Producer Price Index ("PPln), which is generally
recognized as predictive of near-term consumer inflation, increased 0.9% in December
(PPI for finished goods, seasonally adjusted), after a 1.6% decline in October and a 2.0%
increase in November. The PPI rose 5.1 % (SAAR) for the fourth quarter after declining
2.0% in the first quarter of 2006, increasing 6.7% in the second quarter, and declining 4.6%
in the third quarter (all figures recently revised). The PPI increased 1.1 % for 2006,
following a 5.4% increase in 2005 and a 4.2% increase in 2004. After adjustment for
seasonal considerations, the core PPI for finished goods (excluding food and energy)
increased 2.3% in the fourth quarter after increases of 1.8% and 0.3% in the second and
third quarters, respectively. Core PPI rose 2.0% in 2006 after increases of 1.4% in 2004
and 2.3% in 2004.
5
THE NATIONAL ECONOMIC REVIEW
Fourth Quarter 2006
(Continued)
Consumer Spending and Inflation (continued)
According to the Census Bureau of the Commerce Department, the advance estimates in
percentage change in retail and food service sales (adjusted for seasonal, holiday and
trading-day differences) for December 2006 were up 0.9% from the previous month and up
5.4% from December 2005. A large portion of this increase came from retail sales,
electronics and appliance store sales, and sales of health and personal care stores (up
4.9%, 15.0%, and 10.2%, respectively, from 2005 measures). Personal consumption
spending represents approximately two-thirds of total economic activity and is a primary
component of overall economic growth. Real personal consumption spending increased
4.4% in the fourth quarter of 2006 compared to increases of 2.6% and 2.8% (revised),
respectively, in the second and third quarters of 2006. According to the Bureau of
Economic Analysis, durable goods purchases were up 6.0% in the fourth quarter after
decreasing 0.1 % in the second quarter and increasing 6.4% in the third quarter.
Business and Manufacturing Productivity
Productivity has been a primary feature of improved living standards and an important
element in mitigating inflation. According to the Bureau of Labor Statistics the seasonally
adjusted annual rate of non-farm business productivity as measured by the hourly output of
all persons increased 3.0% in the fourth quarter following a revised 0.1 % decrease during
the third quarter of 2006. Fourth quarter productivity reflected the net effect of equal
increases in output and hours worked. Productivity rose 2.4% (all figures seasonally
adjusted and annualized) for the entire business sector. The business sector productivity
increase was the result of output increases of 4.1 % and hours worked of 1.7%.
Manufacturing productivity, generally more volatile in its quarterly measures, increased
2.2% during the quarter as output declined 1.6% and hours decreased 3.7%. Increased
productivity is partially responsible for relatively modest recent employment gains given the
capacity of the work force to increase output without significant new hiring by businesses.
However, economists note that the work force is quite tight given the productivity
improvements. New hires will likely be required which could potentially bid up wage rates.
11%
Non-Farm Business Productivity
Annualized Percentage Change (Per BLS)
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I Annual Ratas - I I Annuali:zed Quarterly Rates = I
6
THE NATIONAL ECONOMIC REVIEW
Fourth Quarter 2006
(Continued)
Industrial Production and Capacity Utilization
Industrial production increased 0.4% in December, after identical decreases of 0.1 % in
October and November (all figures recently revised). Fourth quarter 2006 production
decreased at an annual rate of 0.5% following a revised 4.0% increase during the third
quarter. Manufacturing production rose 0.7% in December after remaining flat in
November. Manufacturing production is 3.3% higher than measures at December 2005.
Capacity utilization increased 0.2 percentage points in December to 81.8%, and was 0.5
percentage points qbove prior year levels. For the third quarter capacity utilization
measured a revised 82.3%. Fourth quarter capacity utilization remained modestly (0.7
percentage point) above the 1972-2005 average. The hurdling of historical levels of
utilization in recent quarters is emblematic of the revitalization of business investment after
many years in which consumer spending significantly outpaced the economic contributions
of the business sector.
The Financial Markets
The Dow closed the third quarter at 12463.15, up 6.7% for the quarter. The Dow rose
4.7% in the third quarter and 0.4% in the second quarter. The Dow was up 16.3% for
2006. The S&P 500 index rose 6.2% during the quarter to close at 1418.30 following a
5.2% decrease in the third quarter. The S&P 500 was up 13.6% in 2006. The NASDAQ
Composite Index rose 6.9% during the fourth quarter to close at 2415.29, following a 4.0%
decrease in the third quarter. The NASDAQ rose 9.5% in 2006. The broad market
Wilshire 5000 index closed at 14257.50, up 6.5% for the quarter. The Wilshire 5000 index
reflected a gain of 13.9% for 2006. At the end of 2003, stocks finished with their first year-
to-year advance since 1999. Performance in 2004 through 2006 represented a
continuation (albeit more modest) of this trend.
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7
THE NATIONAL ECONOMIC REVIEW
Fourth Quarter 2006
(Continued)
The Financial Markets (continued)
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8
THE NATIONAL ECONOMIC REVIEW
Fourth Quarter 2006
(Continued)
The Financial Markets (continued)
The monthly average yields-to-maturity on the 20-year Treasury bond during the fourth
quarter of2006 were 4.94%,4.78%, and 4.78%, respectively, for October, November, and
December. Yields on the 20-year Treasury were flat or declined each month since May
2006, with the exception of October which was modestly up. Bond prices are negatively
correlated with their respective yields, which can shift abruptly due to investor reactions to
major variances in reported economic data versus market expectations (i.e., expected
inflation, growth, monetary policy and other Fed action, etc.). Long-term rates have begun
to respond to the Federal Reserve's most recent action of leaving rates unchanged,
following more than two years of rate increases. In a survey of economists performed by
the Wall Street Journal during the second quarter, one of the most prevalent concerns was
that the Fed would take interest rates too high and tip the economy into a recession. In the
same survey performed in the third quarter, only five out of the 56 economists polled
opined that the Fed would raise rates again in 2006 from the current 5.25% level. That
said, not much effect was seen in the financial markets from the highly anticipated move by
the Federal Reserve to hold rates steady in the second quarter. The majority of the
economists surveyed indicated that in 2007 slowing growth will force the Federal Reserve
to lower interest rates.
Housing Starts and Building Permits
Home building is generally representative of overall economic activity because new home
construction stimulates a broad range of industrial, commercial, and consumer spending
and investment. According to the U.S. Commerce Department's Bureau of the Census,
new privately owned housing starts were at a seasonally adjusted annualized rate of
1.642 million units in December, 4.5% above the revised November estimate, but 18.0%
below the December 2005 level. Single-family housing starts were 1.230 million which is
4.1 % below the November figure. An estimated 1.801 million privately owned housing
units were started in 2006, 12.9% below the 2005 figure of 2.068, which marked the
highest construction volume since 1972. The interest sensitive housing market has fallen
sharply from the highs seen in 2005. As mortgage rates rose, underlying demand and
speculative investment fell and home sales declined. A further reduction of inventories
(homes for sale) is likely required before housing starts will stabilize.
The seasonally adjusted annual rate of private housing units authorized by building permits
(considered the best indicator of future housing starts) was 1.596 million units in
December, 5.5% above the revised November rate of 1.513 million units. Building permits
fell to approximately 24.3% below measures from a year ago. Sixty percent of the
economists forecasted by the Wall Street Journal believe that the worst of the housing
downturn's impact on the broader economy has passed. However, they still see a deeper
housing slump as the biggest risk currently faced by the economy. These economists
predict a 27% likelihood that the housing slump will worsen and push the broader economy
into a recession.
9
THE NATIONAL ECONOMIC REVIEW
Fourth Quarter 2006
(Continued)
Unemployment
According to the Labor Department's Bureau of Labor Statistics ("BLS"), the unemployment
rate was at 4.5% in December, down only slightly from third quarter levels of 4.6% and in
line with forecasts. Unemployment figures of 4.4% to 4.5% during the fourth quarter
represented the lowest levels in over five years. The downward trend in unemployment is
expected to slow, and the unemployment rate is expected to trend toward 4.8% during the
latter half of 2007. The December payroll increased by 167,000 jobs, following a gain of
154,000 jobs in November. The payroll gains were a surprise to economists who had
expected a much smaller increase in payroll growth on the order of 1 00,000 for the month.
With the upward revision of payroll in August, the last twelve months have seen a total of
1.8 million jobs added (an average of 150,000 per month) to payrolls. Population growth
currently adds approximately 150,000 individuals to the work force per month, indicating
that payroll ranks have exceeded population growth. Manufacturing payrolls remained flat
in December following a 1,000 decrease in November. Economists anticipate payroll
growth for January to approach 150,000 jobs.
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10
THE NATIONAL ECONOMIC REVIEW
Fourth Quarter 2006
(Continued)
Interest Rates
The Federal Reserve's Open Market Committee ("FOMC") kept its target for the federal
funds rate unchanged at 5.25% during the fourth quarter. The Committee kept rates
unchanged during the third and fourth quarters of 2006, marking the first quarters since the
latter part of 2003 that the Committee has not raised interest rates. The staff forecast
prepared for the December meeting indicated that growth in economic activity had slowed
to a pace below that of the economy's long-run potential in the second half of 2006. This
was partly due to the effects of the cooling housing market, which was not unexpected for
the quarter. The rate of increase in real GDP is expected to pick up gradually as the drag
from the housing market abates, returning to levels more indicative of potential output
growth by the end of 2007. However, fourth quarter GDP results came in higher than
initially expected. The staff forecast suggests that consumer spending, business
investment, payroll expansion, and sharp declines in energy prices were favorable factors
impacting growth during the quarter. Although readings on core inflation have improved
modestly since early 2006, price pressures are not yet viewed as consistently on a
downward trend. Most expect core inflation to moderate slowly overtime, but stressed that
risks to the inflation outlook remained to the upside. However, core inflation is expected to
be curbed in 2007 and 2008 in response to a continued waning of the effects of higher
energy and import prices, a step-down in rent increases, and the emergence of a small
amount of slack in the economy.
In its December 2005 statement, the FOMC changed its wording regarding monetary policy
accommodation from "can be removed at a pace that is likely to be measured" to "some
further policy firming is likely to be needed." In the March statement, the wording was
changed again to indicate that "some further policy firming may be needed." The wording
was changed in the June statement, and remained in the September and December
statements, to read "that some inflation risks remain."
The following was taken from the Fed's December 1 ih press release:
Economic growth has slowed over the course of the year, partly reflecting a
substantial cooling of the housing market. Although recent indicators have been
mixed, the economy seems likely to expand at a moderate pace on balance over
coming quarters.
Readings on core inflation have been elevated and the high level of resource
utilization has the potential to sustain inflation pressures. However, inflation
pressures seem likely to moderate over time, reflecting reduced impetus from
energy prices, contained inflation expectations, and the cumulative effects of
monetary policy actions and other factors restraining aggregate demand.
Nonetheless, the Committee judges that some inflation risks remain. The extent
and timing of any additional firming that may be needed to address these risks
will depend on the evolution of the outlook for both inflation and economic
growth, as implied by incoming information.
11
THE NATIONAL ECONOMIC REVIEW
Fourth Quarter 2006
(Continued)
Summary and Outlook
Economic results related to the final quarter of 2006 were generally better than expected.
This is especially true regarding GDP. The fourth quarter set the stage for relatively weak,
but positive, expected GDP in 2007. GDP growth expectations from private economists
surveyed by The Wall Street Journal are on the order of 2.3% for first half of 2007 and
2.8% for the second half. This compares to GDP growth of 3.9%, 3.2%, and 3.4% for
2004, 2005, and 2006, respectively. Despite declining growth rates, the majority of
economists do not foresee the likelihood of a recession in the near future. This
deceleration in growth is expected to be at least partially due to the continuing decline in
the housing sector which began in 2006. However, experts note that what consumers are
not spending on construction improvements, they are instead spending on personal
consumption. This somewhat mitigates the downward effect on GDP. Additionally, a
respite from high fuel prices has shored up consumer spending, which, if sustained, should
bolster GDP. The Federal Reserve's outlook concurs with that of the private economists
by suggesting growth at a moderate pace in 2007. Inflation readings were elevated during
the fourth quarter causing some concern for economists. While inflation is not expected to
be a major problem for 2007, should actual inflation exceed expected inflation, the costs to
growth could be significant. Economists are moderately bullish on the stock market
through 2007 and decidedly optimistic long-term. The Fed is expected to reduce interest
rates one to two times during early 2007. The goal is for interest rates to be low enough to
spur expansion, while keeping inflation fears low.
12
Regional Outlook
STATE PROFILE
Pennsylvania - 4th Quarter, 2006
BIG PICTURE
Job quantity hits historic high; top in nation for new manufacturing projects, and
sixth for new and expanded corporate facilities.
· State employment grows 0.9% in October 2006 from year-ago. Greatest gains
in building materials retail, healthcare/education, and telecommunications;
largest losses in manufacturing.
· Unemployment highest in Johnstown at 4.5% in October 2006; lowest in
Lebanon at 2.9%. US average 4.4%.
· Personal income $457 billion in 02 2006, up 6.3% from year-ago.
· PA tax revenue grows 11.4% to $8.7 billion in 022006 from previous year.
· Exports rise 18.4% to $19.4 billion in first 9 months of 2006 from year-ago.
· Venture capital investment in PA jumps 126% to $207 million in 03 2006 from
year-ago.
EMPLOYMENT DATA
Minimum wage of $5.15 mirrors national rate.
Pennsylvania Unemployment and Job Growth Rates
October 2006
us Average 4.4% 1.4%
Allentown 3.8% 1.7%
Altoona 3.7% 1.6%
Erie 4.2% -0.8%
Harrisburg 3.3% 1.9%
Johnstown 4.5% -0.7%
Lancaster 3.0% 1.0%
Lebanon 2.9% 0.8%
Philadelphia 4.1% 1.1%
Pitts burg 3.9% 0.5%
Reading 3.7% 0.1%
Scranton 4.2% 1.1%
State College 3.0% 0.1%
Williamsport 4.3% 1.5%
York 3.4% 0.9%
Source: Bureau of Labor Statistics
13
Pennsylvania Unemployment Rate vs. National Average
Source: Bureau of Labor Statistics
Pennsylvania Job Growth Rates vs. National Average
Source: Bureau of Labor Statistics
14
Pennsylvania Industry Growth Rates
October 2006
Industry
All Employment 0.9%
Mining 1.0%
Construction 1.2%
Manufacturing -2.0%
Wood Products 1.6%
Mineral Products -3.1%
Primary Metals -2.3%
Metal Products 0.0%
Machinery -2.0%
Computers & Electronics -3.5%
Electrical Equipment 1.9%
Transportation Equipment 1.1%
Food Products -1.8%
Paper Products -1.9%
Printing -1.4%
Chemicals -2.9%
Plastics Products -3.3%
Wholesale Trade 1.4%
Retail Trade 0.1%
Cars & Auto Parts 1.4%
Building Materials 2.8%
Food Stores -0.5%
Clothing Stores -0.3%
Transportation, Utilities 1.5%
Trucking 2.5%
Telecommunications 2.7%
Finance -0.1%
Banks -0.2%
Business Services 2.1%
Healthcare & Education 2.9%
Hospitals 1.9%
Hotels 0.4%
Restaurants 1.1%
Government 0.1%
Local Government -0.3%
Source: Bureau of Labor Statistics
15
MAJOR INDUSTRY UPDATE
MINING
PA mining industry includes about 886 companies with combined annual revenue of $3.4
billion. Industry employs approximately 16,100 with annual payroll of $711 million. Large
mining sub-sectors: coal and nonmetallic minerals (valued at $2.5 billion); oil and gas
extraction ($583 million); and support activities for industry ($332 million). Industry
contributes $2.7 billion to gross state product, representing 0.6% of total. Issues impacting
mining industry include obtaining permits; safety, land, and pollution regulations;
environmental lawsuits; fluctuations in commodity prices; and taxes on mined products. PA
mining industry annual exports about $368 million.
· PA Coal Production Up Slightly. State's mines produce 34.6 million short tons of
coal in first half 2006, 2.5% increase over year-ago.
CONSTRUCTION & REAL ESTATE
PA construction and real estate industries include about 34,400 companies with combined
annual revenue of $53 billion. Industries employ about 317,400 with annual payroll of $11
billion. Large sub-sectors: residential construction (valued at $8 billion); commercial ($10
billion); heavy and civil ($7 billion); and real estate services ($6 billion). Industries
contribute $76 billion to gross state product, representing 16% of total. Issues impacting
construction and real estate industries include material, equipment, insurance, and labor
costs; land planning and acquisition; environmental regulations and building codes; worker
safety; cash flow and liquidity management; property obsolescence; and interest rate
changes.
· Existing Home Sales Down. Sales of existing homes, condos, and co-ops fall
4.5% to 245,100 units in Q3 2006 from year-earlier; total of 38 states report decline
in sales activity.
MANUFACTURING
PA's manufacturing industry includes about 16,700 companies with combined annual
revenue of $181 billion. Industry employs about 715,500 with annual payroll of $28 billion.
Major manufacturing sub-sectors: chemicals ($31 billion); food products ($22 billion);
primary metals ($14.3 billion); fabricated metal products ($14.1 billion). Industry contributes
$75 billion to gross state product, representing 16% of total. Issues impacting
manufacturers include raw material, labor, and energy costs; foreign competition; labor,
pollution, and foreign trade regulations; supplier and customer consolidation; capital
equipment and facility expenses; quality control; and labor relations. PA manufacturing
industry annual exports about $21 billion.
· Industry Important to PA. PA site of 19,727 manufacturing plants as of July 2006,
fifth in US for number of plants; largest sub-sectors by employment: plastic
products, commercial printing, and pharmaceutical manufacturing.
16
WHOLESALE & RETAIL
PA wholesale and retail industries include about 64,000 companies with combined annual
revenue of $314 billion. Industries employ approximately 895,900 with annual payroll of
$23 billion. Large wholesale and retail sub-sectors: motor vehicle and parts wholesalers
and dealers (valued at $15 billion, $33 billion); general merchandise retailers ($17 billion);
professional and commercial equipment wholesalers ($13 billion); drug wholesalers ($27
billion); food and beverage retailers ($21 billion); and grocery wholesalers ($23 billion).
Wholesale and retail industries contribute $58 billion to gross state product, representing
12% of total. Issues impacting wholesale and retail industries include transportation costs,
truck driver shortages, logistics, merchandising, inventory management, store advertising
and promotions, consumer and business spending, interest rates, and technology use
(shipment tracking, GPS, point of sale and inventory control software, credit card
processing).
· Retail Consumption Outpaces Nation. Philadelphia shoppers planned to spend
average $1,533 on gifts, decorating, and entertaining in 2006 holiday season, up
7% from previous year and 4.5% above national levels.
TRANSPORTATION & WAREHOUSING
PA transportation and warehousing industries include about 7,500 companies with
combined annual revenue of $14 billion. Industry employs approximately 172,300 with
annual payroll of $4.9 billion. Largest transportation and warehousing sub-sector trucking,
valued at $6.7 billion. Industry contributes $15 billion to gross state product, representing
3% of total. Issues impacting transportation and warehousing industries include fuel,
equipment, and building costs; port traffic and shipment flows; heightened security and
vehicle pollution regulations; driver shortages and licensing; technology for logistics,
shipment tracking, and vehicle maintenance.
· PA Tops in Exports. State seventh in nation for goods shipments to Canada at
$1.7 billion in September 2006; goods transported by truck, rail, and pipeline.
INFORMATION
PA information industry includes about 5,100 companies and employs approximately
143,900 with annual payroll of $6.4 billion. Large information industry sub-sectors:
publishing (valued at $10 billion); Internet service providers ($2.1 billion); broadcasting
($1.8 billion); and telecommunications. Industry contributes $18 billion to gross state
product, representing 4% of total. Issues impacting information industry include
government regulations; industry consolidation; advertising revenue; viewership and
readership; business, education, and consumer spending; technology and infrastructure
shifts.
· Newspapers Up for Sale. Yardley-based Journal Register Co. aims to sell total of
26 newspapers in MA and RI, papers said to show slower growth than others in
company's ownership; Journal Register one of many in newspaper business
adapting to changes in industry, trying to grow Internet business.
17
FINANCE & INSURANCE
PA finance and insurance industry includes about 18,200 companies, employs
approximately 310,500 with annual payroll of $15.2 billion. Aside from banks and credit
unions, top finance and insurance sub-sectors: non-depository credit intermediation
(valued at $12.8 billion); securities intermediation and related activities ($9 billion); and
insurance agencies, brokerages, and related activities ($5.2 billion). Industries contribute
$35.7 billion to gross state product, representing 8% of total. Issues impacting finance and
insurance industry include consumer income and investing, weather related property
damage claims, negotiating reimbursement costs and payments to healthcare providers,
government regulations and codes, interest rates, industry consolidation, technology use,
service differentiation, and client base expansion.
· State Files Suit. PA Department of Banking files lawsuit against Advance America,
one of largest payday lenders in US including 100 locations in PA; suit claims
company operating without state license and charging illegally high interest rates
and fees.
PROFESSIONAL SERVICES
PA professional services industry includes about 28,400 companies with combined annual
revenue of $37 billion. Industry employs approximately 306,000 with annual payroll of $17
billion. Large professional services sub-sectors: computer system design (valued at $8
billion); legal ($7 billion); architecture and engineering ($7 billion); accounting ($3 billion);
and management consulting ($4 billion). Industry contributes $32 billion to gross state
product, representing 7% of total. Issues impacting professional services industry include
government regulations and codes, industry consolidation and business divestiture,
corporate spending, technology use, service differentiation, client base expansion,
corporate in-sourcing, and international clients servicing.
· PA School Keeps Science Interesting. Harrisburg University of Science and
Technology focuses on students earning science, technology, engineering, and
mathematics (STEM) degrees; despite dwindling number of graduates with STEM
degrees in schools across US, Harrisburg able to retain student interest by teaching
science in context, applying all concepts to real life.
HEALTHCARE
PA healthcare industry includes about 32,700 companies with combined annual revenue of
$59 billion. Industry employs approximately 785,500 with annual payroll of $25 billion.
Largest healthcare sub-sectors: ambulatory services (valued at $22 billion) and hospitals
($24 billion). Industry contributes $42 billion to gross state product, representing 9% of
total. Issues impacting healthcare industry include government regulation of
Medicare/Medicaid, doctor/nurse shortages, medical malpractice suits, and care for
uninsured patients. Annual state healthcare expenditures around $55 billion represent 5%
of US total. About 12% of PA residents lack health insurance.
· PA Institutions Play Large Role. Consortium of medical institutions throughout PA
commit nearly $100 million in grants and other funds to National Institutes of Health
plan to link 60 institutions throughout US by 2012; PA part of first round attempt at
linking research facilities with development companies to ensure that medical
advancements reach patients more quickly.
18
TOURISM
PA tourism industry includes about 7,200 companies with combined annual revenue of $9
billion. Industry employs about 132,800 with annual payroll of $3 billion. Large tourism sub-
sectors: arts, entertainment, and recreation (valued at $5 billion); accommodations ($3
billion); and travel arrangement services ($680 million). Tourism contributes $13 billion to
gross state product, representing 3% of total. Issues impacting tourism industry include
visitor numbers, hotel occupancy, international visitors' needs, tourism advertising funds,
visitor traffic and revenue fluctuations due to airline industry restructuring, real estate prices
to buy hotels and land.
· Funding Helps Local and Regional Marketing Efforts. Governor announces $11
million in matching funds for 47 Tourism Promotion Agencies (TPA) in PA; money
used by TPAs in different locales to develop marketing items like advertising
campaigns and promotional literature.
AGRICUL TURE
PA agriculture industry includes 58,105 farms with combined annual revenue of $4.3 billion
and average per farm size of 133 acres. Leading producer of milk and other dairy products
($1.4 billion); poultry and eggs ($746 million); nursery and floriculture products ($733
million); cattle ($442 million). Expenses average four-fifths of total income. Issues
impacting agriculture industry: volatile market prices, equipment costs, animal and plant
diseases and pests, droughts and water restrictions, and changes in government regulation
and aid. Annual industry exports about $1 billion.
· Farm Real Estate Value Up. PA farmers receive average selling price of $4,790
per acre in 2006, up 14% from year-ago; land rental value $46.50 per acre, up from
$45.
LOCAL REAL ESTATE SUMMARY
New housing permits fall 26.1 % in PA in Q3 2006 from year-ago. US average down
23.9%.
Pennsylvania New Housing Permits
Source: US Bureau of Census
19
Commercial vacancy rate in Philadelphia falls to 14.9% in Q3 2006; Pittsburgh 19.5%.
Pennsylvania Commercial Real Estate Vacancy Rate
Data provided by Grubb & Ellis.
Home prices rise 9% in Philadelphia; 3% in Pittsburgh; 13% in York; 12% in Allentown
metro areas in Q3 2006 from year-ago. US average up 8%.
SOllrce'OFI-lEO.
20
Website Links
State of Pennsylvania http://www.state.pa.us
Pennsylvania State Data Center http://www.pasdc.hbo.psu.edu
Pennsylvania Labor Market Information http://www.dli.state.pa.us
Philadelphia Business Journal http://philadelphia.biziournals.com/philadelphia
Pittsburgh Business Journal http://pittsburoh.biziournals.com/pittsburoh
FDIC Statistics on Banking - Pennsylvania http://www2.fdic.oov/SDI/SOB/
21
Industry Outlook - Site Preparation Contractors
First Research, Inc.
Published January 29, 2007
INDUSTRY OVERVIEW
The site preparation contractor industry includes over 30,000 businesses with combined
annual revenue of $37 billion. Major companies include units of Jacobs Engineering Group,
URS Corporation, and Granite Construction, and giants Bechtel and Fluor. Most firms are
privately owned. The industry is fragmented: over 75 percent of businesses are small, with
fewer than ten employees. In addition to corporations of various sizes, many independent
site prep contractors operate as sole practitioners, without incorporation or permanent
employees.
COMPETITIVE LANDSCAPE
Construction and demolition projects drive demand for site prep contractors. The
profitability of individual companies depends on accurate bidding and optimal
deployment of personnel and equipment. Large companies have advantages in servicing
multiple types of projects simultaneously. Small companies can compete effectively by
subcontracting their services to larger firms, specializing by type of work, or becoming a
preferred contractor for local builders and developers. Average annual revenue per
employee for a typical company is a low $130,000, because the work is labor-intensive.
Small firms often compete with solo owner-operators who hire temporary workers and rent
equipment as needed.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services are land clearing and excavation, preparation for construction, and
demolition. Excavation services account for 60 percent of industry business, heavy
construction for 30 percent, and wrecking and demolition, 8 percent. Other services include
preparing for water, sewer, and pipeline construction, and support for oil, gas, and mining
operations.
Most firms specialize in preparation work for buildings or infrastructure projects.
Constructing buildings represents about 50 percent of site prep work. Infrastructure
projects include highways, sewer and water mains and facilities, and driveways.
Contractors use wrecking equipment to demolish buildings and structures, and a variety
of earthmoving equipment for excavation and land grading. Specialty contractors install
septic systems, move houses, or rent equipment with operators. Companies win jobs
through a bidding process, either on a per-hour or fixed-price basis. Firms often work as
subcontractors, which accounts for about half of industry revenue.
For large projects, surveyors measure site elevations and engineers determine how best
to do the work. Contractors acquire local construction permits as needed on a per-job
basis. Firms transport equipment to the job site using trailers, flatbed carriers, or tractor-
trailers.
22
Machine operators, manual laborers, and supervisors work on the job site. Typical
functions include bulldozing to clear and grade land, digging or drilling to prepare for
foundations, and wrecking or blasting for demolition. Workers prepare waste -- such as
dirt, rock, felled trees, and demolition debris, which may contain hazardous materials -- for
removal and hauling according to local ordinances.
Larger firms may work anywhere in the country or internationally, and typically manage
multiple types of projects in multiple locations simultaneously. Midsize firms may work
regionally, as well as locally, whereas smaller firms usually operate within a radius of less
than 30 miles.
Equipment includes bobcats, backhoes, bulldozers, excavators, scrapers, graders, and
loaders for putting debris into trucks for hauling. Major earthmoving equipment
manufacturers are Caterpillar, Komatsu, and CNH Global. A small bulldozer costs around
$15,000 and runs six hours on a tank of gas. Depending on the machine, purchase prices
can vary by 4 to 10 percent during a year, while operational costs can vary greatly due to
changes in gas prices. Smaller companies may rent machinery from sources like United
Rentals and NationsRent.
Site prep machinery is incorporating more technology, including computerized sensors
and controls, that enable the operator to work more efficiently. Sophisticated machines
with global positioning systems (GPS) help in grading and leveling. Office technology
includes software for project planning and management, site elevation schematics, billing,
and receivables. Some smaller firms may prefer traditional manual processes for project
plans and management, but use standard accounting and billing software.
SALES & MARKETING
Typical customers are developers and builders of privately-owned housing and
commercial buildings, civil engineering and heavy construction firms, and government
agencies. Smaller firms may cater exclusively to individual home and business property
owners, or to larger contractors for whom the firms work as subcontractors. About 75
percent of the site prep industry's business comes from the private sector, 25 percent from
primarily state and local governments.
Major types of marketing include ads in the Yellow Pages, newspapers, and construction
trade journals. The most important sales channel is developing and maintaining personal
contacts with construction contractors, builders, and architects. Many firms receive most of
their business through trade and customer referrals. In small firms, the owner may be the
sole salesperson, but other firms employ a sales force.
Smaller companies often compete with individual operators who work on a per-hour basis
on equipment that the end-user customer, such as homeowners or independent
developers, rents. These operators rarely have insurance or business licenses, issues that
smaller companies can exploit in marketing and bidding. The largest contractors may
compete with site prep units of very large construction firms.
Prices vary greatly by type and scope of project and location: from less than $100 per hour
for a simple job by a solo operator, to thousands to prepare for a housing development, or
millions for a major interstate highway project. Large firms price on a per-project basis, but
smaller firms prefer to charge by the hour. Smaller firms may drop prices during off-season
months to help ensure a steady revenue stream.
23
FINANCE & REGULATION
Revenue and cash flow are seasonal in many regions, due to the high volume of warm-
weather projects. Receivables are high for many contractors, because customers pay
incrementally or on completion of work. Half of industry revenue comes from serving as
subcontractors. Average capital expenditures are 5 percent of revenue, and machinery
rental, 4 percent. Few firms carry inventory.
Large firms that buy gas by the tank typically enter hedging contracts to protect against
rising fuel prices. Smaller companies may rent equipment for special job needs.
Independent operators may exclusively rent equipment or buy it used. Dealer financing is
common. Liability insurance is important to protect against project- and injury-related
claims.
Major regulations that affect the site prep industry regard worker safety, in accordance
with OSHA and workers' compensation, and environmental protection, per the EPA.
Localities control proper waste disposal, while many states require contractors to carry
liability insurance. Most municipalities have noise ordinances that restrict the operating
hours for noisy machines like earthmoving equipment. Some localities restrict construction
crews from leaving large equipment on city streets or on work sites when not in use.
REGIONAL & INTERNATIONAL ISSUES
Regional differences largely reflect economic, construction, and climatic conditions.
Contractors in regions with inclement weather, such as Florida during hurricane season or
the far north in the winter, have more seasonality in their business than do firms in milder
climates. California, Pennsylvania, New York, and Texas have high numbers of site prep
contractors.
Large construction firms with global operations provide site prep services abroad.
Midsized companies may subcontract skilled operators to larger firms' international
projects during the local off-season. Every year US firms import increasing numbers of
construction equipment, including earthmoving machinery, primarily from Japan and
Canada.
24
HUMAN RESOURCES
Most site prep employees are machine operators or manual laborers, though many firms
employ engineers and estimators. Manual laborers use mainly physical skills and
machinery operators require equipment-specific training, while highly paid engineers who
plan and manage projects have college degrees. The industry pays on average about 20
percent higher wages than the US average. Fringe benefits add an average of 24 percent
to compensation. Firms maintain a core workforce they supplement with seasonal labor,
which can represent an increase of over 20 percent in headcount. Companies screen
employees for drug use and legal work status.
Industry injury rates are 20 percent higher than the US average, due to the nature of the
work. Many injuries are a result of coming into contact with site prep machinery, or sprains
and strains from overexertion. The severity of injuries keeps industry workers off the job
five days longer than the national average.
Industry Employment Growth
Bureau of Labor Statistics
Average Hourly Earnings & Annual Wage Increase
Bureau of Labor Statistics
25
RECENT DEVELOPMENTS
QUARTERLY INDUSTRY UPDATE
Housing Construction Downturn Continues - Several major indicators, including a
decrease in new housing construction, point toward a slowdown in the US housing market.
New home construction, which is an indicator of the health of the site preparation
contractor sector, was down 28 percent in October 2006 compared to year-ago. Experts
are mixed on predictions for the housing construction market in the near future, with some
seeing the beginning of a turnaround, and others predicting a slow one to two years before
increases begin again.
Corporate Concerns May Drive Facility Construction Changes - Because of a shortage
of skilled labor at the contractor level, corporate property managers are worried that
construction prices could increase exponentially if the process of new facility construction is
not altered. Some large corporations are advocating new approaches to facility location
and construction. One suggestion is for a more integrated construction approach, where all
contractors, including site preparation contractors, would work with companies through the
entire process of facility location and construction.
Canada Has New Construction Hot Spot - Traditionally dominated by Toronto, the bulk
of major office construction seems to have shifted to Calgary. According to industry
experts, 45 percent of new office construction in 2006 has been in Calgary. That number is
expected to climb above 50 percent in 2007, according to CB Richard Ellis. The shift
Westward could ultimately affect site preparation contractors all over Canada, as the boom
in Calgary shows no signs of slowing down.
BUSINESS CHALLENGES
CRITICAL ISSUES
Highly Dependent on New Construction - The site prep contracting business
depends greatly on new construction of commercial and industrial buildings, housing,
and public infrastructure. New construction represents about 75 percent of the
industry's revenue in the US. Total construction spending doubled in the decade ending
in 2005.
· Total US construction spending rose nearly 3 percent in September 2006 compared
to a year earlier; nonresidential construction rose 15.7 percent, while residential
construction spending fell 6.7 percent.
Subject to Seasonal Demand - Industrywide, demand is strongest from spring through
early autumn, requiring careful management of seasonal cash flow and labor. For
companies in cold weather regions, demand can cease during harsh winters. Due to
seasonality, the industry workforce fluctuates at least 20 percent between low and peak
seasons, but for companies in cold regions, the change is even greater.
· Employment in the US site prep industry increased 2 percent in September 2006
compared to a year ago.
26
OTHER BUSINESS CHALLENGES
Full Deployment of Personnel, Equipment - The seasonality of the industry challenges
firms to avoid idle equipment and under-using fulltime personnel when demand is low.
Each piece of earthmoving and demolition equipment costs thousands, and fulltime project
managers and engineers earn high wages. Under-used resources strain the financial
health of firms, especially smaller ones that can service only one or two projects at a time.
Reliance on Gas - Site prep firms rely on gas or diesel for machinery, trucks, and other
equipment that runs throughout the working day. Annual retail gas prices increased 84
percent in the past decade and are subject to volatility, varying by 60 percent in a recent
year. Larger contractors buy gas in tanks at considerable savings, but smaller firms pay
higher prices at retail or wholesale outlets. Fuel can be a significant expense for a small
company, which may be unable to pass the entire cost to customers and remain cost-
competitive.
High Turnover - Manual laborers, unlike engineers and machine operators, receive low
pay, so turnover is high, even during peak season. Firms typically need to hire laborers
quickly to staff a job, and find getting references or determining skill levels difficult. Many
temporary laborers hire on for a specific project and may have less commitment to the
employer than do fulltime crews.
Accident Liability - The industry has a high accident rate and 20 percent more injuries
than average, but firms that demolish structures have even greater risk of incidents and
damage. Inhaling dirt, sand, and dust is an occupational health risk; demolition machinery
is dangerous; and old buildings often contain hazardous materials. Firms need to obtain an
appropriate amount of insurance to cover the financial impact of accidents, but the
potential loss of business due to a damaged reputation can be far greater.
Competition from General Contractors - When general contractors buy local site prep
firms, the general contractors become a competitor, rather than a potential customer, for
the remaining smaller companies. General contractors are a major source of jobs and
referrals for the industry. As general contractors expand their sales and service capabilities
through acquisitions, opportunities diminish for various specialty trades firms, including site
prep companies.
TRENDS AND OPPORTUNITIES
BUSINESS TRENDS
Rising Equipment Costs - Contractors are paying more for construction machinery, as
manufacturers have raised prices in recent years. Prices of graders, rollers, scrapers, and
other site prep equipment recently increased 10 percent in only two years; prices for most
machinery can vary by 4 percent within a year. As an alternative to buying, some
contractors may lease, especially special purpose or rarely used machinery.
More Complex Machinery - Manufacturers are producing equipment with more advanced
technical features, which improves efficiency, but requires more extensive operator
training. Many types of heavy machinery have computerized controls and better hydraulics
and electronics than previous models. Some earthmoving machinery has global positioning
systems (GPS) to help grade and leve/large land areas.
27
Workforce Growth - The size of the industry's workforce closely parallels demand for new
construction and has been growing steadily for a decade, as have wages. The number of
US site prep employees increased 70 percent in ten years, and average wage rates
climbed 35 percent. 2002 was an exception to employment growth due to lower demand
resulting from the recession.
Concerns about Illegal Workers - The construction industry is increasingly concerned
about how immigration legislation will affect business. Efforts by the Department of
Homeland Security to enforce laws against illegal immigrants have led to roundups at
construction sites nationwide. Contractors worry about a potential labor shortage in the
construction industry, since illegal workers account for about 12 percent of its workforce,
according to the Pew Hispanic Center. Legislation can significantly affect smaller firms, due
to project disruption and the time and expense of responding to government inquiries.
INDUSTRY OPPORTUNITIES
Certifying Machinery Operators - Companies whose machinery operators are certified
have a competitive advantage over those who don't. The International Union of Operating
Engineers offers training, apprenticeship, and certification programs in the US and
Canada. Certification is a sales benefit in bidding for jobs and may contribute to lower
insurance costs.
Broader Technology Use - Leading firms are using sophisticated technologies, like 3D
visualization software and global positioning systems (GPS), to win business and gain
efficiencies. Salespeople can use software, like Rapid Design Visualization, to show clients
how the finished project will look in three dimensions. GPS devices on machinery enable
project managers to know the position and progress of operators in the field.
Expanding Partnerships, Services - Site prep firms form partnerships with other specialty
trades to provide a fuller range of services on projects. By combining sales and delivery
efforts, partners can compete better and offer clients the advantage of dealing with fewer
firms. Some partnerships evolve into consolidated companies that have advantages of
scale in reaching more prospects, buying equipment, and servicing more jobs
simultaneously.
Hiring Trained Military Veterans - Because military veterans have long been a good
source of trained employees for the construction industry, Congress has funded a unique
program to accelerate their hiring. Employers can post job openings and recruit from over
150,000 registered candidates via the "Helmets to Hardhats" website. Through this
program, many states allow direct-entry into construction trades for military personnel
leaving active or reserve duty.
28
ECONOMIC STATISTICS AND INFORMATION
Annual Construction Put into Place
Census Bureau
Residential 8.6%
Office -29.0%
12.8%
-13.4%
18.7%
7.5%
13.7%
12.0%
-1.9%
Commercial -7.2%
Total Private Construction -0.4%
-2.5%
6.6%
11.5%
14.4%
7.9%
18.3%
10.8%
11.8%
3.3%
INDUSTRY FORECAST
The value of US construction, a major indicator for site prep contractors, is forecast to
grow at an annual compounded rate of 5.5 percent between 2006 and 2009.
Construction Growth Drops Then Stabilizes
Source: IERF, Inc.
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College
Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
29
The Company
Rogele Inc. is a limited service special trade contractor primarily engaged in the
construction of pipelines, communication, and sewer and water mains. The Company is
located in Harrisburg, Pennsylvania, and was incorporated in 1964.
Rogele's clientele consists almost exclusively of municipalities in the South Central
Pennsylvania area, which includes Dauphin, Cumberland, York and Lancaster Counties.
All of its work is commercial in nature. As of June 2007, the Company has a backlog of
work in the range of $5 - $6 million.
All of the company's sales are derived from bids. Most jobs are given to the low bidder.
Management has indicated that Rogele is more diversified than its competitors who usually
work in a more specific area. This provides some advantages to Rogele since its clients can
hire one company to complete a project rather than hiring several companies to complete
different aspects of a project.
Rogele's employee base consists of 60 individuals. Management has indicated that
employee relations are good. Occasionally the Company will use independent contractors.
Key member of management consist of the following:
Rob McClure, age 39, President and Secretary.
Chris McClure, age 36, Vice President and Treasurer.
Denny McClure, age 55, Vice President.
Dick Davis, age 52, Shop Foreman.
The Company also employs 15 job foremen that range in age from 30-55.
Rogele's common stock consists of 164 shares of Class A voting shares and 2,592 shares
of Class B non-voting shares. The voting shares are owned as follows: Estate of Judy
McClure 148 shares, James McClure 8 shares, Chris McClure 8 shares. The nonvoting
shares are spread out amongst the children and grandchildren of Judy McClure.
Rogele has paid no dividends over the years.
There have been no transactions involving interests in the company in the last five years.
Management has indicated that there have been no written or oral offers received for the
Company in the last five years.
In our opinion the Company's financial condition and its management depth and
competence are good. Growth expectations should mirror the industry. The Company is
not well diversified geographically or with its customer base.
30
RMA Annual Statement Studies
In performing the valuation study we considered industry statistics from Risk Management
Associates (RMA). RMA recommends that Statement Studies data be regarded only as
general guidelines and not as absolute industry norms. It should be noted that the
information collected by RMA is not selected by any random or statistically reliable method;
however it does provide information regarding companies in specific industries grouped by
total assets and by gross revenue. We have utilized the information from the RMA Studies
as a general guideline to assist us in developing our opinion of value under certain
valuation methods.
Revenue Ruling 59-60
This appraisal was also performed in a manner consistent with the guidelines set forth in
U.S. Internal Revenue Ruling 59-60 C.B. 1959-1, 237, which generally outlines the
valuation of closely held stocks.
Our appraisal of the Company as of January 7, 2007 is in accordance with the above
definition.
Basis of Accounting
Rogele, Inc.'s financial statements are prepared under the income tax basis of accounting;
consequently, certain items are recorded differently than they would be under generally
accepted accounting principles. These differences consist of the following:
· Deferred income taxes are not presented
· Compensated absences are recorded on the cash basis
· Depreciation is computed by methods prescribed by the Internal Revenue Code.
We do not believe that these items will materially affect this valuation report.
Financial Analysis
Balance Sheet
Exhibit 1 is a summary of the balance sheets for the years ended July 31, 2002 through
July 31,2006. For the year ended July 31,2006, cash accounts for 0.0 percent of current
assets, accounts receivable 93.7 percent, costs and estimated earnings in excess of
billings on uncompleted contracts 5.3 percent and net bid deposits and prepaid taxes
represent 1.0 percent of total current assets. In total current assets represent 58.4 percent
of total assets.
Equipment, less accumulated depreciation represents 41.4 percent of total assets. Cash
value of life insurance accounts for the remaining 0.2 percent of total assets.
The current portion of long term debt represents 9.1 percent of total liabilities, accounts
payable makes up 25.0 percent, accrued liabilities and employee withholdings represent
2.5 percent of total liabilities and billings in excess of costs and estimated earnings on
uncompleted contracts represents 40.0 percent of total liabilities.
31
Long term liabilities represent 23.4 percent of total liabilities and consist mostly of notes
payable to banks.
Shareholders' equity consists of both voting and nonvoting stock, additional paid in capital
and retained earnings.
The current ratio for July 31,2006 is 1.10. For the other years included in the analysis, this
ratio ranged from 1.15 to 2.03.
The current ratio is a measure of a company's ability to pay its short-term debt from short-
term assets. It measures the number of times that current assets exceed current liabilities.
The industry average current ratio indicated by RMA for Construction General- Water and
Sewer Line and Related Structures Construction is 1.50. A strong ratio indicates a
financially sound company, and is indicative of consistent financing and money
management policies. Rogele, Inc.'s current ratio is at the lower end of the range for
companies in the industry.
The quick ratio, also known as the acid test ratio, is a stricter, more conservative measure
of liquidity than the current ratio. This ratio reflects the degree to which a company's
current liabilities are covered by its most liquid current assets, the kind of assets that can
be converted quickly to cash and at amounts close to book value. Inventory and other less
liquid current assets are removed from the calculation. Generally, if the ratio produces a
value that is less than 1.0, it implies a "dependency" on inventory or other less current
assets to liquidate short-term debt.
In this case, Rogele's quick ratio is 1.09. The average ratio for the industry is 1.20.
Non-Operating Assets
Real estate that is not used by the business represents a non-operating asset of the
Company. We have calculated the fair market value of this real estate by utilizing real
estate tax appraisals provided by management, and multiplying the appraised value by the
common level ratio of the county where the real estate is located.
Since non-operating assets are not an integral part of the business, we have added the fair
market value of these assets to the values calculated in the market approach method.
Income Statements
As part of our analysis of the fair market value of the stock of Rogele, Inc., we analyzed the
Company's unadjusted income statements for the years ended July 31, 2002 through
2006. Exhibit 2 presents the income statements for those periods.
Sales decreased annually from 2002 through 2004, but then rebounded from 2004 to 2006
at an 8.6 percent annual compound growth rate.
Net operating income has decreased over the past 5 years from a high of $639,056, in
2002 to a low of $71,940 in 2006. The Company has consistently produced a net income
from operations during the period under study.
32
Adjustments to Net Income
Earnings are considered the primary factor in a number of the methods we have utilized;
therefore, the elements that comprise earnings were reviewed for material factors that
could distort income.
Earnings are the primary consideration in the capitalized earnings method and are also a
factor in the formula and income methods; therefore, the elements that comprise earnings
were reviewed for material factors that could distort income. Accordingly, an adjustment
was made to reduce officers' compensation for each year included in the study.
As shown in Exhibit 5, officers' compensation was normalized by applying a percentage to
the net sales generated by the Company. The percentage utilized was derived from a
comparable industry sample of officers' compensation as a percentage of net sales. The
percentages used are for Construction General - Water and Sewer Line and Related
Structures Construction (NAICS# 237110, SIC# 1623), which is the classification that the
Company falls under.
Normalized officers' compensation was compared to the compensation expense of Rogele,
Inc. to see if the Company's officers' compensation is more or less than the industry.
In this case, the Company is paying less than other firms in the industry for officers'
compensation. Therefore, the difference between the average industry and and the actual
officers' compensation paid by the Company was added back to increase income on
Exhibit 4 to fully reflect the economic reality of the Company.
An adjustment was made to eliminate non-operating income and donations expense.
These items are not related to operations and therefore should not be considered in
valuation techniques that are based on earnings.
We have also adjusted income taxes based on the adjusted net income for each year.
33
Valuation Approaches
The business appraisal profession classifies valuation methodologies into three basic
approaches. A description of each approach follows.
Income Approach
This approach is based on the earnings potential of the business. The valuation
professional estimates the benefit stream accruing to the owner and either capitalizes
(historical earnings) or discounts (estimated future earnings) that benefit stream at an
appropriate rate to determine the value.
Methods that can be utilized under the income approach are: capitalized earnings,
capitalized cash flow, discounted earnings and discounted cash flow.
Asset Approach
The asset approach assumes that an asset's value is indicated by the cost of reproducing
or replacing it, less an allowance for physical deterioration and obsolescence. This
approach is commonly used for assets that are not sold on an active market, such as land
improvements and special purpose equipment. For business valuations, this approach
generally applies to companies with little value beyond the value of their tangible assets,
such as holding companies.
Methods under the asset approach consist of: formula method (excess earnings), adjusted
book value, and liquidation value.
Market Approach
According to Chris Mercer as published in The Intearated Theory of Business Valuation,
'The market approach compares valuation measures for a subject company with valuation
metrics taken from the markets - either the public securities markets, the market for similar
companies, or even the market for the securities of the subject company."
Some examples of methods under the market approach are: guideline company method,
price/earnings, price/gross cash flow, price/book value, multiple of discretionary earnings,
rules of thumb and company specific methods.
34
Valuation Methods Rejected
Income Approach - Discounted Cash Flow Method
The discounted cash flow method is used primarily when a company's fair market value is
related to its earnings. In the valuation of Rogele, Inc., we considered the discounted cash
flow method and rejected it as an appropriate method in this case due to the lack of reliable
financial forecasts in relation to the size and risk profile of the entity being valued.
Asset Approach - Liquidation Value Method
Liquidation value is the value of a company's assets (minus liabilities) valued as if they
were to be sold in an orderly, piecemeal manner. Although we considered the liquidation
value of Rogele, Inc., we rejected the method as an accurate indicator of its fair market
value as of January 7,2007 due to our opinion that the Company was a going concern at
that date.
Market Approach - Publicly Traded Guideline Company Method
We reviewed various sources to determine if any comparable publicly-traded companies
existed from which we could derive price/earning ratios, price/book value ratios, etc. We
were unable to find any publicly-traded companies that we considered comparable to
Rogele, Inc..
35
Valuation Methods Accepted
The methods employed in reaching our conclusions include the following:
1. Asset Approach - Adjusted Book Value Method
2. Income I Asset Approach - Income Method
3. Asset Approach - Formula Method
4. Market Approach - Multiple of Net Income Method
Asset Approach - Adjusted Book Value Method
Conceptual Basis
This asset based method calculates a business's adjusted book value by adjusting assets
and liabilities from their book value to their estimated fair market value as of the date of
valuation.
Adjustments to Assets
We have utilized shareholder's equity as of December 31, 2006 as provided by the
Company, and adjusted the Company's assets and liabilities to their estimated fair market
values as of the January 7, 2007 date of valuation.
An adjustment was made to increase equity for the fair market value of fixed assets. The
Company's fixed assets consist of land, buildings, construction equipment, small tools,
trucks and autos, and office equipment. The Company has provided us with estimates of
the fair market value of the assets that are not real property.
Fair market values for real estate owned by the Company were derived from real estate tax
appraisals adjusted to current market values by utilizing the common level ratio for the
county where each parcel is located. The common level ratio is published by the
Pennsylvania Department of Revenue and is an estimate of the increase in the value of
real estate since the last tax appraisal was completed.
The unrealized gain on these assets is then adjusted for income taxes to result in adjusted
shareholders' equity
Calculation of Indicated Value
The adjusted book value of the Company on a controlling interest basis, as shown on
Schedule 4, is $3,281,897.
36
Income I Asset Approach - Income Method
Conceptual Basis
The income method, shown in Schedule 3, is a hybrid method that utilizes both income and
adjusted shareholders' equity as valuation factors.
The computation produces a net income factor that is used to calculate the value of the
Company's net income in general accordance with the principles set forth in U.S. Internal
Revenue Ruling 59-60 and its subsequent modifications.
As a guide we referred to U.S. Internal Revenue Ruling 59-60 that provides:
"Earnings may be the most important criterion of value in some cases whereas
asset value will receive primary consideration in others.
In general, the appraiser will accord primary consideration to earnings when
valuing stocks of companies which sell products or services to the public;
conversely, in the investment or holding type of company, the appraiser may
accord the greatest weight to the assets, underlying the security to be valued."
We have found that within the construction industry, the greatest emphasis is generally
given to the assets underlying the security to be valued. Accordingly, we have assigned a
majority of the weight to adjusted shareholders' equity by using a 80% weighting factor.
Computation of Capitalization Rate Under the Build-Up Method
We have computed a capitalization rate for Rogele, Inc. under the build-up method.
If the standard of value is fair market value, the correct capitalization rate is the rate
available on other comparable investments, adjusted for differences in risk and other
factors.
As shown in Exhibit 3 we have started with the rate, as of the appraisal date, available on
long-term bonds. This rate is 4.76 percent as reported by the Federal Reserve Bank of
st. Louis.
The equity risk premium, as detailed in Ibbotson's Stocks, Bonds, Bills and Inflation
2006 Yearbook, is the difference in premium between stocks and bonds. This premium is
added to the normalized risk free treasury yield to develop an average market return. This
is the extra return earned by an average equity investor in excess of the return on long-
term treasury securities. In other words, it attempts to measure the rate of return that an
average investor would consider adequate for an investment in a Standard & Poor's 500
Company. We have reduced the equity risk premium by 1.25 percent based on research
conducted by Roger Grabowski, ASA of Standard & Poor's Corporate Value Consulting.
Grabowski asserts that appraisers should use the arithmetic average of the geometric
average when computing the equity risk premium.
37
The average market return is then adjusted to take into consideration the additional risk
inherent in a small closely held company. There is obviously more risk associated with a
closely held company than with a major publicly traded S & P 500 Company. Therefore,
the capitalization rate must be adjusted to take into consideration this additional risk.
As shown in Exhibit 3, we have utilized Ibbotson's "Expected micro-capitalization equity
size premium" of 3.88 percent. Ibbotson calculates this percentage by calculating the
weighted average return earned by the smallest 20 percent of all companies listed on the
NYSE, AMEX and OTC exchanges.
This rate is then adjusted for other risk factors. We have adjusted the rate by 3.00. The
Company is not very well diversified geographically.
The discount rate for net cash flow is converted to a discount rate applicable to net
earnings by adding an increment specific to net earnings. One method of developing a
business' net earnings discount rate or increment specific to earnings is to develop a
conversion rate based on a range of typical differences between dividend yields
(dividends/stock price) and earnings yields (earnings/stock price) of public companies.
While there have been no definitive studies at this point, many experienced practitioners
feel that this difference most typically ranges from 2 percent to 6 percent. We have utilized
3.00 percent. The discount rate for net earnings derived under this method is 17.49
percent.
In order to convert the discount rate for net earnings to a capitalization rate for net
earnings, the expected long-term average compound growth rate is subtracted from the
discount rate for net earnings. We estimate the long-term growth rate to be approximately
3.00 percent. This calculation renders the net earnings capitalization rate applicable to the
next year. To apply the capitalization rate to the Company's recent historical benefit
stream it should be divided by 1 plus the projected growth rate.
As detailed in Exhibit 3, the capitalization rate derived under this method is 16.98 percent.
In our opinion, this rate is representative of Rogele Inc.'s current operating environment
and market conditions.
Income to be Capitalized
In order to estimate fair market value using the capitalized earnings method, it is necessary
to determine Rogele, Inc.'s sustainable earnings base as of date of valuation. The first step
is to adjust the historical earnings stream. The adjustments to income are shown on
Exhibit 4, and were discussed earlier in this report.
The second step, weighting the net income and calculating the weighted-average earnings
base, is presented in Schedule 3. Net income is weighted in descending order with the
most weight being given to the most recent year and the least weight to the earliest year
included in our study, because the most recent year is generally most indicative of future
results.
Finally, the weighted average net income is capitalized at an appropriate rate. The
capitalization rate of 16.98 percent is calculated in Exhibit 3. The indicated value for
operations under this method is $2,069,287.
38
Calculation of Adjusted Shareholders' Equity Factor
As shown in Schedule 2, shareholders' equity has been adjusted by increasing fixed assets
to their fair market values. The adjusted shareholders' equity value is $3,281,897.
Calculation of Indicated Value
After weighting the earnings (20%) and equity (80%) factors, the indicated total value
derived by this method is $3,039,375.
Asset Approach - Formula Method
Conceptual Basis
In Schedule 4, an estimated value has been determined in general accordance with the
formula or excess earnings method. This method is a two-stage valuation technique in
which the calculated value of intangible assets is added to net tangible assets.
Excess earnings are capitalized at an appropriate rate to determine the intangible value, of
goodwill. This intangible value is then combined with the value of net tangible assets to
calculate the indicated value of the Company.
Excess Earnings to be Capitalized
An appropriate rate of return on shareholders' equity or net tangible assets must be
developed to utilize this method. We have used the industry average operating profit
before taxes from the RMA Annual Statement Studies. These percentages are derived
from companies that are in the same industry.
The Company's normalized income ranges from $354,368 to $819,308 over the five year
period under study as shown on Schedule 5. We believe that these earnings are a
sustainable level of earnings for the future.
In applying this method, we have weighted excess income in a manner in which the results
of the most recent year are given the most weight and the earliest period the least weight.
Generally, the results of the most recent year are more indicative of future performance
than the results of earlier years, due to changes in numerous factors and trends.
Finally, it is necessary to apply an appropriate rate to capitalize excess earnings. Since the
risk attached to the intangible portion of assets is substantially greater, and because
goodwill is perishable, a higher capitalization rate than the rate applied to total equity is
necessary. In our opinion, a rate of 35.0 percent is adequate for capitalizing excess
earnings.
As shown in Schedule 5, the goodwill of Rogele, Inc. is estimated to be $243,179.
Summary and Indicated Value Estimate
The value of the net tangible assets and the intangible assets are then combined, to
produce a total value of the subject corporation. We utilized adjusted book value as
calculated in Schedule 2 as the value of net tangible assets. The total value derived under
this method on a controlling interest basis as shown in Schedule 4 is $3,525,076.
39
Market Approach - Multiple of Net Income Method
Conceptual Basis
In Schedule 6, an indicated value has been determined by the net income multiplier
method. This method is a market approach that provides a valuation based on the median
multiple of net income calculated using 4 private industry transactions completed between
1998 and 2005 as published by Pratt's Stats.
Calculation of Indicated Value
A factor of 9.3 has been applied to the Company's weighted average adjusted net income
to result in a value for operations of $ 3,267,695. The value of the non-operating assets
has been added to the value of operations to result in a total indicated value for the
Company of $3,630,437 as shown in Schedule 6.
Relative Importance of Each Method
When comparing the results of these methods, it is necessary to determine the importance
of each method in determining the estimated value of the Company. We have selected
methods that include elements from each valuation approach (income approach, asset
approach, market approach).
The adjusted book value method and the formula method are both asset approaches. In
our opinion, forthis type of company, we believe that the assets of the Company are more
valuable than the income stream. We have chosen to place a weight of 30.0 percent on
each of these methods.
The income method is a hybrid method that includes both earnings and assets in the
calculation of value. In this instance we have place more reliance on the asset value (80%)
than on the value of earnings (20%). A weight of 10.0 percent has been placed on this
method.
The multiple of net income method calculates value under the market approach. This
method utilizes a multiplier developed from actual sales in the industry to derive value. We
believe that this approach is valid in determining the fair market value of the Company. A
weight of 30.0 percent has been applied to this approach.
In summary, we believe that the results of each method result in valid values for the
Company. In our opinion the asset approach should receive more weight than the other
approaches.
Control Premium
The shares to be valued represent a controlling interest in the voting stock of the
Corporation. The methods selected result in controlling interest values; therefore, no
additional premium has been added to the total value of the Company.
We have however included an allocation of a portion of the total value of the Company
between voting and non-voting shares as discussed later in this report.
40
Marketability and Liquidity Discount
The concept of marketability involves the liquidity of an interest. In other words,
marketability is how quickly and assuredly an investment can be converted to cash at the
owner's discretion. Generally, an investment has greater value if it is readily marketable
than if it is not, since investors prefer liquidity to the lack of it. An interest in a closely held
business is not as liquid as compared to a majority of alternative investments.
Since closely held interests are not readily marketable, a discount for lack of marketability
and liquidity is appropriate. We have reviewed various studies and court cases to assist us
in developing such a discount rate.
One source of information utilized in our search for an appropriate discount rate was the
data available on transactions in letter stock. Letter stock is similar to the freely traded
stock of a public company except that it is restricted from trading on the open market for a
specified period of time. This time period is usually two years, however it can vary.
The only difference between the letter stock of a company and its publicly traded shares,
which are unrestricted, is the marketability of the interest. Therefore, the difference
between the price of a company's publicly traded stock and the transaction price garnered
for its letter stock should provide guidance as to an appropriate discount for restrictions on
marketability.
SEC (Securities Exchange Commission) "Accounting Release No. 113" imparts that
the discount for lack of marketability can be substantial.
Restricted securities are often purchased at a discount, frequently substantial, from the
market price of outstanding unrestricted securities of the same class. This reflects the fact
that securities which cannot be readily sold in the public market place are less valuable
than securities which can be sold, and also the fact that by the direct sale of restricted
securities, sellers avoid the expense, time and public disclosure which registration entails.
Restrictions on the transfer of letter stock eventually expire and the seller can transfer the
shares in the stock market. The same is not true of closely held stock or interests that are
encumbered by a partnership agreement that restricts the disposition of partnership assets.
Therefore, the discount assigned to closely held shares or interests encumbered by other
means can be substantially greater than that indicated by the spread between the letter
stock of a public company and its freely traded counterpart.
In the "Institutional Investors Study Report" of the Securities and Exchange
Commission that was published in 1971, one of the topics researched was the amount of
discount at which transactions in restricted stock (letter stock) took place compared to the
prices of identical but unrestricted stock on the open market.
41
The study detailed the difference between the open market price on letter stock
transactions and the price of unrestricted stock trades. The amount of the spread was
equivalent to the discount due to lack of marketability. These transactions were further
broken down by the market in which the security was traded. The four categories utilized
were the New York Stock Exchange, American Stock Exchange, over-the-counter (OTC)
reporting companies, and OTC non-reporting companies. Reporting companies are those
that must file forms and other information with the SEC. A non-reporting company is a
publicly traded stock that is not subject to the reporting requirements of the SEC. A stock
traded over-the-counter can avoid the reporting requirements by having assets of less than
$1 million or by having 500 shareholders or less.
The smaller non-reporting public companies probably better reflect the marketability
characteristics of a closely held entity.
The study detailed that the discounts on the letter stocks were smallest for shares traded
on the NYSE and increased, in order, for AMEX listed stocks, OTC reporting companies
and OTC non-reporting entities. For OTC non-reporting companies, the largest frequency
of observations fell in the 30 to 40 percent discount range.
Over 30 percent of the OTC reporting companies had discounts of over 30 percent. The
overall mean average discount indicated by the study was a 25.8 percent. However, for
OTC nonreporting companies, which are probably more comparable to closely held
companies, the average discount was 32.6 percent.
Also reviewed was the "Moore Study of Court Decisions on Closely Held Interests"
published in Trusts & Estates, February 1987, pp. 40-52. This study concludes that lack of
marketability discounts can vary substantially in size, depending on a multitude of factors,
but that the magnitude of lack of marketability discounts has steadily increased over the
years. For the years 1980 to 1982 the study indicated an average discount of 28.6 percent.
Evidence from more recent studies, namely the "FMV Study" published in Estate
Planning in 1994 and the "Management Planning Long-Term Study" published in The
Handbook of Advanced Business Valuation in 2000, show that marketability discounts
are not as large as they were in the early to mid 1980's. The average discounts shown by
these studies were 23.0 and 27.1 percent respectively.
We also examined other studies of discounts for lack of marketability. In particular, we
reviewed the "Gelman Study" published in 1972, the "Trout Study" published in 1972, the
"Moroney Study" published in 1973, the "Maher Study" published in 1976, the "Standard
Research Consultants Study" published in 1983, and the "Willamette Management
Associates Study" published in 1984.
42
The courts commonly use the data available on letter stock discounts to select an
appropriate discount rate for lack of marketability in valuing closely held entities. However,
some recent court cases have resulted in judges rejecting this data that valuation
professionals had used to support the marketability discounts in their reports. One such
case is Mandelbaum VS. Commissioner. The court cited the following factors that might
cause a marketability discount to be higher or lower than benchmark averages:
1. Financial statement analysis
2. Dividend policy
3. Nature of the company, its history, its position in the industry
and its economic outlook
4. The company's management
5. Amount of control in the transferred shares
6. Restrictions on transferability of the stock
7. Holding period for the stock
8. Company's redemption policy
9. Costs associated with a public offering
While a number of these items may be considered repetitive factors that should have
already been considered in the valuation process, particularly factors that are also
considered in reaching a minority value, the conclusions reached reveal an overall trend in
the tax courts. Although courts continue to accept discount studies for establishing
marketability discounts, they no longer seem satisfied by a blind application of those
studies. The presiding judge in the Mandlebaum case defends his position by noting that it
may be appropriate to consider the same factors again for different reasons.
In determining the discount for lack of marketability and liquidity, we have given primary
consideration to the factors stated above.
In our judgment, based upon the studies cited and other factors noted, a 25.0 percent
discount for lack of marketability and liquidity is deemed appropriate.
43
Allocation of Total Indicated Value Between Common-Voting
and Common-Nonvoting Shares
In general, voting rights increase the value of common stock for quite obvious reasons.
This is especially so when a certain class of the common stock has no voting rights. In
essence, the voting shareholders control the company. The main problem to resolve in this
particular case is the allocation of fair market value between voting and nonvoting stock.
In determining the portion of the total indicated value of the Company to allocate to each
class of stock, we referred to the ESTATE OF SAMUEL I. NEWHOUSE, 94TC(No. 14)
94.14PHTC.
In the Estate of Samuel I. Newhouse, Advance Publications, Inc, common stock was
valued, Advance operated a highly successful newspaper and publishing operation. Its
capital structure consisted of 10 shares of Class A common stock, 990 shares of Class B
common stock, and 3,500 shares of preferred stock. The Class A stock had no par value,
and its owners had the exclusive right to vote for the board of directors.
With the exception of voting rights, Class B common stock shared equally with Class A
common stock in all rights.
The Court concluded that the value of the shares of a closely held corporation should be
adjusted to reflect legal uncertainties regarding the relative rights of the voting and non-
voting shareholders.
Our purpose in reviewing this case was to determine how the Class A voting stock
premium was determined. The Court concluded that, Goldman Sachs analysis
produced a reasonable and correct value for the voting common stock.
Goldman Sachs reasoned that the best way to realize the value in the company's stock
would be through a public sale. In order to accomplish a public sale, it would first be
necessary to recapitalize the company creating a single class of common stock. The
exchange would consist of trading one share of the newly created stock for one
share of the preferred stock or Class B common stock, but the Class A voting
common stock would be traded for three shares of the new stock. With the capital
structure of Advance, the net effect was the application of a 33.3 percent premium
attributed to the voting shares.
In determining the portion of the total indicated value of the Company to allocate to each
Class of stock, we referred to Shannon Pratt's Valuing A Business, The Analysis and
Appraisal of Closely Held Companies pp. 119. "The matter of voting rights, of course, is
inseparable from the whole matter of control. There is very little empirical transaction data
and scant guidance from court decisions that are helpful in quantifying the value of voting
rights in various circumstances. For small minority interests, what little market data exists
suggests that voting rights are accorded little or no value unless they are significant". The
Newhouse case suggests a 33.3 percent premium while Shannon Pratt suggests little or no
premium. Based on our experience and the references given above, we have applied a
3.70 percent premium to the voting shares.
The percentage shown in Exhibit 6 is based on the total indicated value.
44
Summary of Apportionment of Total Indicated Value
Between Class A and Class B Common Stock
Based upon the information obtained, the procedures followed and the assumptions made
as set forth above, a reasonable estimate of the apportioned market value of Rogele, Inc.,
after applicable premiums and discounts is:
Total
Indicated
Value
Price
Per
Share
Common Stock -
Voting, Class A
$ 230,602
$1 ,406
Common Stock -
Non-voting Class B
$ 2,345,769
$ 905
Summary
In summary, we have concluded that a reasonable estimate of the fair market value of
Rogele, Inc., on a controlling interest basis as of January 7,2007 after a discount for lack
of marketability and liquidity is $2,576,371 as shown on Schedule 1.
In our opinion, the fair market value of 148 Class A voting shares of Rogele, Inc., for the
Estate of Judy McClure, on a minority interest basis,as of January 7, 2007, as shown on
Schedule 1 after a discount for lack of marketability is $208,088.
However, because the validity of the assumptions made could be ultimately determined
only as a result of litigation, if a controversy were involved, and because actual fair market
value can only be determined by bona fide bargaining between well informed buyers and
sellers, we do not represent that the amount set forth above will be the amount ultimately
so determined.
~~ a dAj.t~~ f/-StV
August 17, 2007
45
Certification of Appraiser
We certify that, to the best of our knowledge and belief:
1. The statements of fact contained in this report are true and
correct.
2. The reported analyses, opinions, and conclusions are limited
only by the reported assumptions and limiting conditions, and
represents our unbiased professional analyses, opinions and
conclusions.
3. We have no present or prospective interest in the property that
is the subject of this report, and we have no personal interest
or bias with respect to the parties involved.
4. Our compensation is not contingent on an action or event
resulting from the analyses, opinions, or conclusions in, or the
use of, this report.
5. Our analyses, opinions, and conclusions were developed,
and this report has been prepared in conformity with Uniform
Standards of Professional Appraisal Practice.
6. This valuation report has been prepared by Michael W. Zelko,
CPAlABV and Brent W. Emrick, CPAlABV, CFP under the
supervision of William B. Boles, CPAlABV, ASA, CFP.
7. The American Society of Appraisers and the American Institute
of Certified Public Accountants have mandatory recertification
programs for all of their members. We are in compliance with
these programs.
46
Appendix A:
Professional Parameters
The American Society of Appraisers is a professional organization of individuals.
International in structure, it is self-supporting, unaffiliated and independent. The society
works cooperatively for the elevation of the appraisal profession. It is one of eight major
appraisal societies that helped to found the Appraisal Foundation, a national self-regulatory
organization created in 1987 to establish uniform qualification criteria for professional
appraisers, to develop standards for appraisal work, and to provide other programs to
serve the Public.
The only major appraisal organization representing all of the disciplines of appraisal
specialists, the Society was originated in 1936 and incorporated in 1952. It is
headquartered in suburban Washington, D.C.
Society members include specialists in business valuation, machinery and equipment,
personal property (fine arts, antiques, residential contents, gems and jewelry, and a variety
of other subjects), real property (residential, commercial, industrial, and agricultural), and
technical valuation (public utilities, industrials, natural resources, and others); in short, all
types of property, tangible and intangible, real or personal
Each Society member who has conclusively demonstrated that he or she is qualified to
appraise one or more kinds of property has been certified. Such certification is predicated
upon Society criteria: intensive written examinations, submission of representative
appraisal reports and screening of applicant's practice and ethics. With five years or more
of full-time valuation experience members may use the professional designation ASA
(Accredited Senior Appraiser). With more than two years but less than five years of
experience members may use the professional designation AM (Accredited Member).
Senior appraisers are required to recertify, every five years, through a mandatory
continuing education process.
Ethical practices and conduct required of Society members are clearly defined in The
Principles of Appraisal Practice and Code of Ethics of the American Society of Appraisers.
Interna~ional Board of Governors
Resolution # 6-71-4
Revised 6-88
47
Appendix B:
Appraiser's Qualifications
STATEMENT OF APPRAISER QUALIFICATIONS
Overview
Boles Metzger Brosius & Ritter PC is a full service consulting and public accounting firm
with an excellent reputation and a recognized expertise in the area of business valuation
services.
William B. Boles, CPA, ASA, CFP directs the Business Valuation Division of Boles Metzger
Brosius & Ritter PC. Bill is an Accredited Senior Appraiser with the American Society of
Appraisers in the business valuation area. He has over 30 years of practical experience in
valuing a diverse array of business entities and types. Bill's experience combined with the
experience and talents of the other members of his team, allows us to value just about any
type of business.
Bill's team consists of Michael W. Zelko, CPAJABV and Brent W. Emrick, CPAJABV, MBA,
CFP.
The team has valued businesses and business interests of all sizes, from small
proprietorships to large corporations.
We have also valued intangible assets such as goodwill, employment agreements,
securities and copyrights. We have prepared merger and acquisition studies, employee
stock ownership plan analysis, and other similar studies.
Our work is used frequently in annual ESOP plan administration, estate and gift tax
planning, buy/sell agreements, securities litigation, and marital dissolution. We have served
as expert witnesses in a number of related litigation cases.
Our valuation engagements include such diverse tasks as structuring and implementation
of professional practice retirement/buyouts, the determination of economic losses in
deprivation of value litigation including personal injury, contract disputes and eminent
domain.
Our office is located at:
3601 North Front Street
Harrisburg, PA 17110
Tel: (717) 238-0446
48
STATEMENT OF APPRAISER QUALIFICATIONS
Experience:
Our Partnership has extensive experience in the valuation of both small and large companies in a
wide variety of industries. The following is a partial list of various kinds of businesses for which we
have supplied business valuation services:
Agricultural Entities
Architectural Firms
Automobile Dealerships
Beer Distributors
Construction Companies
Dry Cleaners
Environmental Engineering Firms
Electrical Connector Manufacturers
Financial Institutions
Fuel Oil Suppliers
Gasoline Service Stations
Valuation Library:
Law Practices
Machine Shops
Manufacturing Companies
Medical Practices
Packaging Companies
Real Estate Developers
Restaurants
Varied Retailers
Various Wholesalers
Woodworking Shops
Valuina Small Businesses and Professional Practices, First Edition, Dow Jones Irwin,
Shannon P. Pratt.
Valuina a Business - The Analvsis of Closelv-Held Companies. Second and Third Editions,
Dow Jones Irwin, Shannon P. Pratt.
Handbook of Small Business Valuation Formulas and Rules of Thumb. Second and Third
Editions, Valuation Press, Desmond and Marcello and Glenn Desmond, respectively.
Guide to Business Valuations. Practitioners Publishing Partnership, Jay E. Fishman, et.al.
Financial Valuation: Business and Business Interests. Maxwell, Macmillian, et.al. James H.
Zukin.
Handbook of Business Valuation. John Wiley & Sons, Inc., et.al. Thomas L.West and Jeffrey
D, Jones
Federal Tax Valuation, Warren, Gorham & Lamont, John A, Bogdanski.
Quantifvina Marketability Discounts, Peabody Publishing, LP, Z, Christopher Mercer
Business Valuation Review. The Quarterly Journal of the Business Valuation Committee of the
American Society of Appraisers, 1988 through present.
BV Resources.com, Business Valuation Resources LLC, Shannon Pratt, et.al.
Cost of Capital Estimation and Applications, Shannon P. Pratt.
First Research.com, First Research, Inc.
49
STATEMENT OF APPRAISER QUALIFICATIONS
Stocks. Bonds. Bills and Inflation, 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999,
2000,2001,2002,2003,2004,2005,2006 and 2007 Yearbooks, Ibbotson Associates.
RMA Annual Statement Studies, 1988 through 2006, RMA.
ValuinQ Financial Institutions, Business One Irwin, Z. Christopher Mercer.
ValuinQ IntanQible Assets, McGraw Hill, Robert F. Reilly and Robert P. Schweihs.
Valuation of a Closelv Held Business, AICPA, Small Business Consulting Practice Aid.
IRS Valuation Guide for Income. Estate and Gift Taxes, IRS Appeals Officer Valuation
Training Program, Commerce Clearing House, Inc.
Pratt's Stats Online, Business Valuation Resources, LLC.
Futures, Options. and Swaps, Blackwell Publishers, Inc., Robert W. Kolb
Guide to Business Valuations, PPC, Jay E. Fishman, Shannon P. Pratt, J Clifford Griffith,
D. Keith Wilson.
U.S. Financial Data, Federal Reserve Bank of St. Louis
Business Reference Guide, The Essential Guide to PricinQ a Business 16th Edition,
Business Brokerage Press, Tom West
Business Reference Guide, The Essential Guide to PricinQ a Business 17th Edition,
Business Brokerage Press, Tom West
50
WILLIAM B. BOLES, CPAJABV, ASA, CFP
Curriculum Vitae
BOLES METZGER BROSIUS & RITTER PC
CERTIFIED PUBLIC ACCOUNTANTS
PROFESSIONAL EXPERIENCE:
. Boles Metzger Brosius & Ritter PC (Shareholder 1978 to present)
o General accounting practice, including representing and advising clients in all tax
matters; business valuations, divorce and estate planning. Consulting in business
valuation and litigation support services since 1978, such services include ESOP
annual as well as initial valuations, board of director tender offer evaluations, estate
and gift taxation matters, domestic relation issues-equitable distribution, depredation
of value or income litigation, planning for buy, buy/sell agreements, valuation of
intangibles, and the purchase and sale of a business, valuation of family limited
partnership.
. BGM Financial Associates, Ltd. ( Shareholder 1992 to 2004)
o Financial planning and investment management, including advising clients in all
financial areas.
. Laventhol & Horwath (Director of Tax Services 1969 to 1978)
o Represented and advised various corporations, partnerships, trusts and individuals
in all tax matters.
. United States Internal Revenue Service (Revenue Agent, Field Audit Division 1964 to 1969)
o Numerous individual and corporate tax examinations, both civil and criminal.
EDUCATION AND PROFESSIONAL DESIGNATIONS
. University of Drexel, Pennsylvania - Bachelor of Science
. Certified Public Accountant
. Senior Member of the American Society of Appraisers, Business Valuation Division
. Certified Financial Planner
. Accredited in Business Valuation - AICPA
PROFESSIONAL AND CIVIC ACTIVITIES
. American Institute of Certified Public Accountants, Member
o Member of T ax Division
o 2004 AICPA National Business Valuation Conference, Orlando, FL
o 2005 AICPAlASA National Business Valuation Conference, Las Vegas, NV
. Pennsylvania Institute of Certified Public Accountants, Member
o Member, Federal Tax Committee
o Chairman, Federal Tax Committee 1998-2000
o Testified on behalf of Pennsylvania Institute of Certified Public Accountants on
Governance and Oversight of the IRS and Taxpayer Protection and Rights,
December 10,1997, Hearings held by Senator Santorum and U.S. Representative
Goodling
o Federal Tax Conference, Speaker, Valley Forge & Harrisburg, 1997
o Controllers Conference, Speaker, Trevose, 2002, (Business Valuation
issues/succession planning)
o Estate and Personal Financial Planning Conference, Speaker, Hershey, 2002
51
WILLIAM B. BOLES, CPAlABV, ASA, CFP
Curriculum Vitae, continued
. South Central Chapter Pennsylvania Institute of Certified Public Accountants
o Past President 2001-2002
o Past Chairman of Tax Committee
o Member of various committees such as Speakers Bureau, Legislative, Tax,
Technical Meetings
o Speaker various educational seminars on tax and business valuation topics including
Dauphin County Bar Association Lunch and Learn, PICPA South Central Chapter
December 1997 Business Valuation Update, December 1998-2003 Federal Tax
Update, 2005 Business Valuation Update.
. American Society of Appraisers, Member
o Accredited as Senior Appraiser in 1992; Recertified in 1997 and 2002
o International Appraisal Conference ASA, Toronto 1996
o Joint Business Valuation Conference ASAlCIBV, Montreal 1998
o International Appraisal Conference ASA, Boston 1999
o International Appraisal Conference ASA, Tampa 2003
o ASA Uniform Standards of Appraisal Practice, USPAP, ASA Appraisal Education
Completion Certificate, 15 hour course and exam, November 1994
o ASA Uniform Standards of Appraisal Practice, USPAP, ASA Appraisal Education
Completion Certificate, 15 hour course and exam, August 1999
. Hampden Township Vacancy Board -Past Member 1978-2000
. Hampden Township Industrial Development Authority-Past Chairman 1978 - 2000
. Parents Anonymous of Pennsylvania-Past Treasurer
. Central Pennsylvania College Educational Foundation-Chair of Board of Trustees 2004-
2006
EXPERT WITNESS:
. Service was provided as an expert witness with regard to valuing businesses or business
interests or evaluating income form marital dissolution matters such as equitable distribution
and/or spousal support; appointment of guardian for an incompetent person in Orphans
Court and a business transaction litigated in Federal Court. Service was also provided for
several. arbitration hearings regarding business valuation disputes. Either direct testimony or
depositions were provided in Dauphin, Cumberland, Lebanon, York, Lancaster, Lycoming,
Mifflin and Franklin Counties of Pennsylvania and also in South Carolina.
52
BRENT W. EMRICK, CPAlABV, CFP
Curriculum Vitae
BOLES METZGER BROSIUS & RITTER PC
CERTIFIED PUBLIC ACCOUNTANTS
PROFESSIONAL EXPERIENCE:
. Boles Metzger Brosius & Ritter PC (Shareholder 1989, Manager 1986, Supervisor 1983,
Staff Accountant 1980)
o General accounting practice, including representing and advising clients in all tax
matters; business valuations, financial and estate planning.
. BGM Financial Associates, Ltd. (President, Shareholder 1992 to 2004)
o Financial planning and investment management. Advises clients in all planning
areas.
. Walter Fry, CPA (Staff Accountant 1977 to 1980)
o Bookkeeping, financial statement preparation, tax return preparation, including
corporations, individuals and fiduciary.
. Dauphin Deposit Bank (Trust Department, 1975 - 1977)
o Administrator of estates and trusts, preparation of Pennsylvania inheritance tax,
federal estate tax and fiduciary income tax returns.
EDUCATION AND PROFESSIONAL DESIGNATIONS
. Penn State University, Middletown, Pennsylvania - Master of Administration, Business
. Penn State University, Middletown, Pennsylvania - Bachelor of Business
. Harrisburg Area Community College, Harrisburg, Pennsylvania - Associate In Arts
. Certified Public Accountant
. Certified Financial Planner
. Accredited in Business Valuation by the American Institute of Certified Public Accountants
PROFESSIONAL AND CIVIC ACTIVITIES
. American Institute of Certified Public Accountants, Member
. Pennsylvania Institute of Certified Public Accountants, Member
o Legislation Committee
o Past President - South Central Chapter
o Past service on many committees including Budget and Finance
o Summerdale PA Community Federal Credit Union - Treasurer
o Estate Planning Council of Central Pennsylvania - Past President
o Hemlock Girl Scout Council- Former Treasurer and Chair of Finance Committee
o Boy Scout Troop 89 - Former Scout Master
o Speaker and panel discussion participant for tax and financial planning seminars
presented to professional organizations and the general public.
o Speaker and organizer for continuing education programs presented by the
Pennsylvania Institute of Certified Public Accountants and other organizations.
53
MICHAEL W. ZELKO, CPAJABV
Curriculum Vitae
BOLES METZGER BROSIUS & RITTER PC
CERTIFIED PUBLIC ACCOUNTANTS
PROFESSIONAL EXPERIENCE:
. Boles Metzger Brosius & Ritter PC (Professional staff, 1987 to 1991, Senior 1991 to 1995,
Supervisor of Business Valuation Department 1997 to present)
o General accounting practice, including audit, review and compilation procedures for
corporations, local governments and non-profit organizations. Preparation and
review of corporate, partnership, individual and fiduciary tax returns, and corporate
and personal income tax planning, preparation of business valuations for Employee
Stock Ownership Plans, mergers and acquisitions, divorce, and estate and gift tax
issues, and management advisory services.
. BGM Financial Associates, Ltd. (Supervisor, 1996 to 1999, Shareholder, 2000 to 2004)
o Financial planning and investment management, including serving on the Investment
Committee for the selection of appropriate investments for clients in all planning
areas
. Villa Teresa (Controller 1995 to 1996)
o Responsible for all financial affairs of 184 bed nursing home, including managing
accounting staff, preparation of financial statements, filing appropriate tax forms with
federal and state taxing bureaus, preparation of Medicare and Medicaid cost reports,
management of pension plan and investments.
EDUCATION AND PROFESSIONAL DESIGNATIONS
. York College of Pennsylvania, Bachelor of Science, 1987
. Certified Public Accountant, 1992
. Accredited in Business Valuation by the American Institute of Certified Public Accountants,
1999
PROFESSIONAL AND CIVIC ACTIVITIES
. American Institute of Certified Public Accountants, Member since 1992
. Pennsylvania Institute of Certified Public Accountants, Member since 1992
. Institute of Business Appraisers, Member since 2005
. Speaker and organizer for continued education programs presented by Boles Metzger
Brosius & Ritter PC as an approved sponsor by the Pennsylvania State Board of
Accountancy.
. Chairman Business Valuation Committee
o South Central Chapter, Pennsylvania Institute of Certified Public Accountants, 1997
. Treasurer Lawton Athletic Association 1999, 2000
. School Board member S1. Catherine Laboure School 2000-2001
. Attended 2004 AICPA National Business Valuation Conference, Orlando, FL
. Attended 2005 AICPAlASA National Business Valuation Conference, Las Vegas, NV
54
ROGELE, INC.
VALUATION OF COMMON STOCK
JANUARY 7,2007
SUMMARY
(,.,.,., ..........
:....:.:-:.:.;.:.:.:.:.;.:.:.:.:
Method
Weighted
Indicated indicated
value Weight value
$3,281,897 30.0 % $984,569
3,039,375 10.0 303,938
3,525,076 30.0 1,057,523
3,630,437 30.0 1,089,131
100.0 %
3,435,161
Adjusted book value method (Schedule 2)
Income method
(Schedule 3)
Formula method
(Schedule 4)
Multiple of net income
method (Schedule 6)
Weighted average net income
Indicated value before lack of marketability discount
Lack of marketability discount
25.0%
(858,790)
Total indicated value
$2,576,371
Value per share for Class A voting shares (Exhibit 6)
$1,406
Shares to be valued, 148 Class A voting shares
148
Indicated value of 148 Class A voting shares
$208,088
Schedule 1
ROGELE, INC.
VALUATION OF COMMON STOCK
JANUARY 7, 2007
ADJUSTED BOOK VALUE METHOD
COMPUTATION OF INDICATED VALUE
k .::, ................. .'';.;.:.:.;.:::::::::::::::::>::::::
..:'.. ::::::::::::::::::::::::::::::::::::::::;:::::::;:::::::::,:::::::::;:::::::;:::::::::::::::,:::::::::::::::::::,:::;:;:::;:::::::;:::::::
::::;:::,:;:::::::;:.:;:,:.:;:::::;:.::
Adjusted shareholders' equity, December 31, 2006
Adjustments:
Estimated fair market value of fixed assets
Fixed assets, net of accumulated depreciation
Unrealized gain on fixed assets
Tax on unrealized gain (Combined Federal and State @ 43%)
Unrealized gain on fixed assets after taxes
Adjusted shareholders' equity
Schedule 2
..... :;.:;:::::;:;:;:;:;:::::::;::::;.:,:;:: ::::;:;:;:;:,:;:;:: ::::::::::::::::::;:;:,:::;:,:::::::;:::;:::
:::::;:::;::;.:;:::::;:::.;: ..:.:.:.:.:1
$2,429,501
4,485,091
2,989,659
1,495,432
(643,036)
852,396
$3,281,897
ROGELE, INC.
VALUATION OF COMMON STOCK
JANUARY 7, 2007
INCOME METHOD
COMPUTATION OF INDICATED VALUE
(:.:.:.:........................
........................
. . . . . . . . . . . . . . . . . . . . . . . .
........................
....................................................................................
..........................................
"......... ':<1
Adjusted Weighted
net income net
Year (Exhibit 4) Weight income
Computation of weighted
average net income 2006 $512,690 5 $2,563,450
2005 295,873 4 1,183,492
2004 229,548 3 688,644
2003 162,524 2 325,048
2002 509,848 1 509,848
Total 15 $5,270,482
Weighted average net income $351,365
Capitalization rate (Exhibit 3) 16.98 %
Value of earnings $2,069,287
Earnings factor $2,069,287 x 20,0% $413,857
Adjusted shareholders' equity (Schedule 2) $3,281,897 x 80,0% 2,625,518
Indicated value of operations $3,039,375
Schedule 3
ROGELE, INC.
VALUATION OF COMMON STOCK
JANUARY 7, 2007
FORMULA METHOD
COMPUTATION OF INDICATED VALUE
,................
Adjusted shareholders' equity, December 31,2006
$2,429,501
Adjustments:
Estimated fair market value of fixed assets
4,485,091
Fixed assets, net of accumulated depreciation
2,989,659
Unrealized gain on fixed assets
1,495,432
Tax on unrealized gain (Combined Federal and State @ 43%)
(643,036)
Unrealized gain on fixed assets after taxes
852,396
Adjusted shareholders' equity
3,281,897
Value of goodwill (Schedule 5)
243,179
Indicated value
$3,525,076
Schedule 4
ROGELE, INC.
VALUATION OF COMMON STOCK
JANUARY 7,2007
FORMULA METHOD
COMPUTATION OF GOODWILL
I...... ..........................................
2006 2005 2004 2003 2002
Adjusted net income before taxes
(Exhibit 4) $899,456 $519,075 $402,715 $285,130 $894,471
Net sales (Exhibit 2) 16,064,864 14,475,408 13,629,530 13,878,219 15,625,903
Average industry net profit
before taxes as a percentage
of sales* 5.1% 2.6% 2.6% 3.3% 4.7%
Normalized income 819,308 376,361 354,368 457,981 734,417
Excess income 80,148 142,714 48,347 (172,851 ) 160,054
Weight 5 4 3 2
Weighted total 400,740 570,856 145,041 0 160,054
Sum of weighted totals 1,276,691
Sum of weight 15
Weighted average excess income $85,113
Goodwill Range:
Minimum 40.0% capitalization rate $212,782
Initial 35.0% capitalization rate 243,179
Maximum 30.0% capitalization rate 283,709
Goodwill of Rogele, Inc. $243,179
* Source - RMA Annual Statement Studies, SIC # 1623
Schedule 5
ROGELE, INC.
VALUATION OF COMMON STOCK
JANUARY 7,2007
MULTIPLE OF NET INCOME METHOD
COMPUTATION OF INDICATED VALUE
1'"""" .....
..................,.....,'.............'...
..................... ................
.....................
....................
. . . . . . . . . . . . . . . . . . . . .
.........................
........................
. . . . . . . . . . . . . .. . . . . . . . .. .
....................
....................
....................
,',',',',',',',,,',,,',':.
Computation of weighted
average adjusted net income
Adjusted
net Weighted
income Weighting net
Year (Exhibit 4) factor income
2006 $512,690 5 $2,563,450
2005 295,873 4 1,183,492
2004 229,548 3 688,644
2003 162,524 2 325,048
2002 509,848 1 509,848
15 $5,270,482
$351,365
9.30
$3,267,695
362,742
$3,630,437
Total
Weighted average net income
Industry multiple of net income
Indicated value of operations
Non-operating assets net of income taxes
Indicated value
Schedule 6
ROGELE INC.
SUMMARY OF BALANCE SHEETS
JULY 31, 2006, 2005, 2004, 2003 AND 2002
I:':':':'::,":"""'"
.....................
.....................
.....................
. ...... ...... . .
........................,..............
........................................
. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
...................",. ........
............"..........
................,......
........................
. .... ..............
.:.;.:.:.:.:.:.:.:.:.:.:.:.;.:.:.:.;.:.;.:.:.;.:.
................ ........
....... ...."....".....
.................,.......
.... ...... ...... .....
ASSETS
2006 2005 2004 2003 2002
Total current
assets $3,921,221 $3,560,303 $3,569,525 $2,800,843 $2,790,587
Net property
and equipment 2,777,713 2,943,723 2,789,770 2,340,300 2,435,618
Other assets 15,940 15,940 16,637 17,217 17,217
Total assets $6,714,874 $6,519,966 $6,375,932 $5,158,360 $5,243,422
LIABILITIES AND SHAREHOLDERS' EQUITY
Total current
liabilities $3,553,453 $3,100,801 $2,148,483 $1,867,182 $1,374,868
Noncurrent liabilities 1,085,571 1,415,255 2,298,329 1 ,450,944 2,128,064
Shareholders' equity 2,075,850 2,003,910 1,929,120 1,840,234 1,740,490
Total liabilities and
shareholders' equity $6,714,874 $6,519,966 $6,375,932 $5,158,360 $5,243,422
Exhibit 1
ROGELE INC.
SUMMARY OF STATEMENTS OF OPERATIONS
YEARS ENDED JULY 31, 2006, 2005, 2004, 2003 AND 2002
f:.:...;.:..-:.:-.,..;.:.:..............
...............:.:.:.:.:.:.;.:.:.:-:.:.:.:.:.:.:
.:.:.:.:.:':.:.:
.......................
..................... .
...... .......................
2006 2005 2004 2003 2002
Job and contract revenue $16,064,864 $14,475,408 $13,629,530 $13,878,219 $15,625,903
Cost of contracts 11,960,262 10,731,529 10,520,946 10,737,841 12,030,365
Gross profit 4,104,602 3,743,879 3,108,584 3,140,378 3,595,538
Operating expenses 3,927,345 3,506,731 2,951,923 2,932,484 2,791,238
Operating income 177,257 237,148 156,661 207,894 804,300
Other income 44,685 4,963 49,014 18,634 32,925
Other expense (94,851) (117,629) (106,164) (115,173) (184,883)
Net income (loss)
before taxes 127,091 124,482 99,511 111,355 652,342
Provision for income taxes 55,151 49,692 10,625 11,611 13,286
Net income $71,940 $74,790 $88,886 $99,744 $639,056
Exhibit 2
ROGELE, INC.
VALUATION OF COMMON STOCK
JANUARY 7,2007
COMPUTATION OF CAPIT AUZA TION RATE
I'.',' ......
:.:.:.:.:.:.;.;.;.:.:.:.:.:.:.:.:-:.; ...............:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.;.:.:.:.:.:.:.:.:.;.;.:.:.:.:.:.;.:.;.;.:.:.;.:.;.;.:.:.:.:.;.:.;.;.;.:.:.:.:.:.:.:.:.:.:.:. .....
.......................
.....,.................
. . . . . . . . . . . . . . . . .. . . . . .
.,.,.,.,.:.,.,.:.,.,.:.,.,.,.,.,.,.,.,.:.,.,.,.,.,.
Risk free rate - long-term treasury bond yield * 4.76 %
Equity risk premium - stocks over bonds 5.85
Average market return 10.61
Expected micro-capitalization equity size premium 3.88
Adjustments for other risk factors 3.00
Discount rate for net cash flow 17.49
Increment specific to net earnings 3.00
Discount rate for net earnings 20.49
Less sustainable average compound growth rate or "G" (3.00)
Net earnings capitalization rate for next year 17.49
Divided by "G" plus 1 103.00
Net earnings capitalization rate for current year 16.98 %
* Source - U.S. Financial Data, January 19, 2007 edition, published
by the Federal Reserve Bank of St. Louis, long-term bond rate as of January 5, 2007
** Source - Stocks, Bonds, Bills and Inflation, 2007 Yearbook,
Published by Ibbotson Associates.
Exhibit 3
ROGELE, INC.
VALUATION OF COMMON STOCK
JANUARY 7, 2007
I"",:"";,;,,,; .,.;.,.;.;.,.,.;;;...............
COMPUTATION OF ADJUSTED NET INCOME
........ ,,;.;.,.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.;.'.,.,.,.;.'. .;.;.;.;.;.;;;.;.; .;.;.;.;.;.;.;.;.;.;.;.;.;.;.,.;.;.;.,.; .;.;.;.;;;.,.;.;.;.;.'. ...;:;......... .;.;.;.;.;;;.;.;.;.;.;.;;;.;;;.;.;.;.;.;.;.;.;.; .;.;.;.;.;.;.;.;.;.;;;.;.;.;.; ..
...... ....... .,.;.;.,.;.;.;.; .;.;;;.;.;.;.; .....
2006 2005 2004 2003 2002
Net income before taxes
(Exhibit 2) $127,091 $124,482 $99,511 $111,355 $652,342
Other income (44,685) (4,963) (49,014) (18,634) (32,925)
Donations 5,725 9,925 7,065 7,432 5,411
Officers' compensation
adjustment 811,325 389,631 345,153 184,977 269,643
Adjusted net income 899,456 519,075 402,715 285,130 894,471
Income taxes (386,766) (223,202) (173,167) (122,606) (384,623)
Adjusted net income $512,690 $295,873 $229,548 $162,524 $509,848
Exhibit 4
ROGELE, INC.
VALUATION OF COMMON STOCK
JANUARY 7,2007
OFFICERS' COMPENSATION ADJUSTMENT
1>='''''''''''';';''
.... .......... ....
...........................,.
.............,...............,
. . .,.. ......
. .............
.." .
2006 2005 2004 2003 2002
Sales (Exhibit 2) $16,064,864 $14,475,408 $13,629,530 $13,878,219 $15,625,903
Officers' compensation
as a percentage
of sales * 1.7% 2.4% 1.8% 2.9% 1.9%
Normalized officers'
compensation 273,103 347,410 245,332 402,468 296,892
Rogele officers'
compensation 1,084,428 737,041 590,485 587,445 566,535
Adjustment for
officers' compensation $811 ,325 $389,631 $345,153 $184,977 $269,643
* Source - RMA Annual Statement Studies, SIC # 1623
Exhibit 5
ROGELE, INC.
VALUATION OF COMMON STOCK
JANUARY 7, 2007
ALLOCATION OF INDICATED VALUE BETWEEN COMMON VOTING
AND COMMON NON-VOTING SHARES
........................
........................
....... ................
I'.";,;,, ......
Total
indicated Shares Apportioned Premium Indicated
value outstanding value 3.0% value
Common - voting
Class A 164 $153,311 $77,291 $230,602
Common - nonvoting
Class B 2,592 2,423,060 (77,291) 2,345,769
Schedule 1 $2,576,371 2,756 $2,576,371 N/A $2,576,371
k
..
. . . . . . . . , . . .. .......
:.:.: ...... :.:.:->:.:.:.:.:.:.:.:.:.:.:.:.
'i::{{{{:}::9QrttPw:M!PttPMt!~H~~~'~:V~~j:l~tA..Ni!:f:j~O'~::::::}.
.............................
................................ .
...................................
..................................
...................................
..................................
...................................
Shares
outstanding
Indicated
value
(Apportioned)
Indicated
value
per share
Common - voting
Class A
164
$230,602
$1,406 .
Common - nonvoting
Class B
2,592
2,345,769
$905 ·
2.756
$2,576,371
* - Rounded
Exhibit 6
Elmer Murry Auctions, Inc.
License No. AU.649.L
717.790-2240
www.rlchardmurrvauctloneer.com
5222 East Trindle Rd.
Suite R
Mechanlcsburg,Pa. 17050
March 9, 2007
IN RE: McClure Appraisal
Owner: Estate of:
Judith Anne McClure
5020 Kylock Rd.
Mechanicsburg,Pa.17077
DOD 01/07/2007
Attn: Ms Bonnie Hartz
In accordance with your request, I am enclosing an appraisal report regarding the
property owned by Judith Anne McClure, deceased.
The real estate consist of a parcel of land known as 5020 Kylock Road, located in
the township of Lower Allen, in the county of Cumberland, in the state of Pennsylvania,
containing Y:z acre mil.
Erected on that property is a solid brick and frame constructed dwelling house
further described below.
I HEREBY CERTIFY THAT:
. I have no interest in the property, either present or contemplated.
. My compensation is not contingent upon the valuation found.
. To the best of my knowledge, everything contained in this report is true
and no important facts have been withheld.
. I assume no responsibility for matters of legal nature affecting the property
appraised or the title thereto, nor do I render any opinion as to the title, which is
assumed to be good and marketable. The real property is appraised as though
under responsible ownership.
Elmer Murry Auctions, Inc.
License No. AU-649-L
717-790.2240
www.richardmur....aucfioneer.com
5222 East Trindle Rd.
Suite R
Mechanicsburg,Pa. 17050
Purpose of the appraisal:
The purpose of this appraisal is to estimate the market value of the subject
property in Fee simple title.
Definition of Market Value:
Market value as used in the report, is defmed as:
The most probable price, in terms of money, which a property should bring I a
competitive and open market under all conditions request to a fair sale, with the buyer
and seller each prudently and knowledgeably, and assuming the price is not effected
by undue stimulus.
Property Rights:
The property being appraised as Fee Simple.
Fee Simple is defmed as:
The maximum possible estate one can possess in real property. A fee simple
estate is the least limited interest and most complete and absolute ownership in land;
it is of indefinite duration, freely transferable and inheritable.
Neighborhood Remarks:
The property is well located in a quality neighborhood. having surroundings that
appeal to the enhancement and current value of the property.
Highest and Best Use:
Residential
Based on the above defmition and after seeing the site, neighborhood and are, it is my
opinion the present value of this property is:
Elmer Murry Auctions, Inc.
License No. AU.649.L
717.790-2240
www.richardmurlJlauctioneer.com
5222 East Trlndle Rd.
Suite R
Mechanlcsburg,Pa. 17050
. Public Water Supply
. Conventional sewer on property
. Estimated value of House...... ... ......... .......205,000
. Estimated value of Land... ... ...... ... ... .........72,000
Total appraised Value............... ... ............ ... ......277,000
Based on my inspection on the property and upon facts and opinions contained in the
attached report, it is to the best of my knowledge and belief that Two Hundred Seventy-
Seven Thousand ($277,000) Dollars would represent a Fair Market Value for the
aforementioned real estate.
Estimated value of the further described house below.
. Kitchen / Lounge area
. Large Dining Room
. Family Room w/Fireplace
. Laundry / Bath area
. Sun Room
. Patio
. Master Bedroom having 3 closets, fireplace and bathroom
. Study / Studio having closet and bath
. Sun / Sitting Room w/closet
. Hallway with closet
. Oversized Garage
. Oil fired hot water baseboard heating system
. Central Air conditioning
,--slibritted b
,/
/
..../
John Thomasco
Graduate Gemologist (GIA)
714 Brookside Lane
Lebanon,Pa.17042
1-717-272-8209
June 11, 2007
Estate appraisal for Judith A. McClure
Date of death 1/07/2007
1. MENS RING: 14-karat yellow gold 1964 West Point college ring.
VALUE $375.00
2. MASONIC RING: 14-karat two tone gold 32 degree Masonic ring.
VALUE $150.00.
3. WEDDING RING: 14-karat yellow gold mens wedding ring.
VALUE $75.00.
4. ROLEX WATCH: Mans 18-karat yellow gold Rolex wrist watch with diamond
Numerals. Back is engraved" Jim, you make my heart sing, Judy 4-17-90". Serial
number is X807926.
VALUE $7500.00.
5. POCKET WATCH: 14-karat white gold filled Illinois 17 jewel open face pocket
watch, serial number 4825877.
VALUE $150.00.
6. EARRINGS: 14-karat yellow gold earrings with a hanging Amethysts pear shape
gemstone.
VALUE $30.00.
7. EARRINGS; 14-karat yellow gold filigree design hoop earrings.
VALUE $30.00.
8. HEART PENDANT: 14-karat yellow gold pendant with a oval blue sapphire and four
round brilliant cut diamonds measuring 5.1,5.12,4.2, and 4.6mm each with a total
weight of 1.65 carats. A 24-inch 14-karat yellow gold chain is included.
VALUE $1200.00.
9. CHARM BRACELET: 14-karat white gold charm bracelet with six gold charms and
two sterling silver charms.
VALUE $225.00.
10. EARRINGS: 14-karat yellow gold large oval earrings.
VALUE $45.00.
11. BLACK PEARL EARRINGS: 14-karat yellow gold earrings with a hanging
8.5 to 9.0 mm round black cultured pearl.
VALUE $150.00.
12. DOME RING; 14-karat yellow gold dome ring.
VALUE $25.00.
13. DIAMOND RING: 14-karat yellow gold ladies ring with five round brilliant cut
diamond with a total diamond weight of 0.33 carats.
V ALLUE $150.00.
14. ETERNITY RING: ladies platinum diamond eternity ring with approximately two
carats total weight of round brilliant cut diamonds.
VALUE $325.00.
15. ANKLE BRACELET: broken sterling silver ankle bracelet with five Diamonique
simulated gemstones.
VALUE $2.00.
16. HOOP EARINGS: 14-karat yellow gold hoop earrings.
VALUE $35.00.
17. LOCKET: yellow non-gold locket.
VALUE $2.00.
18. CROSS: platinum cross with seventeen round brilliant cut 0.02 carat diamonds with
a 20-inch fme platinum chain.
VALUE $300.00.
19. BRACELAT: broken sterling silver bracelet with Diamonique simulated gemstones.
VALUE $1.00.
20. TIE-TAC: 14-karat yellow gold tie-tac with a l1x9 mm oval black star sapphire.
VALUE $40.00.
21. NECKLACE: lO-karat yellow gold filigree design necklace with two 0.01 carat
diamonds with a fme chain.
VALUE $35.00.
22.EARRINGS: 14-karat yellow gold lever back earrings with five 0.02 carats diamonds
in each earring and a hanging tear drop shaped blue topaz gemstone.
VALUE $100.00.
23. EARRINGS: same as #22 except citrine gemstone instead of blue topaz.
VALUE $100.00
24. CHARM: 14-karat yellow gold "Best Friend' charm.
Value $7.00.
Appraisal was made as the mountings permit.
c:;u:
08/31/2005 09:57
4805954001
DESERT MOUNTAIN PROP
PAGE 01/01
~
~
November 19,2004
Dear Member:
This year has been an exciting one for The Desert Mountain Club, with tbe completion ()f a full
operating yeaT at the Outlaw Golf Course and Clubhouse. Many members have enjoyed this
additional Jack Nicklaus links golf course and the casual southwestern dining exper.ience. The
agronomic decision not to overseed the fairways in the fall season, to ensure premier summer and fall
golf course condi.tions was met with high praise and support. ..
Weare in the process of completing over $1.5 million in improvements that include drainag~: repairs
on the Apache Golf Course, eight resurfaced greens (Apache/Geronimo) and the remodeling of the
Sonoran Spa and Fitness locker rooms. We continue upgrading the Club's facilities and amenities
annually.
As you !nay already be aware, The Desert Mountain Club's Member.ship Contribution for Deferred
Equity Golf Memberships will increase from $275,000 to $325,000, effective January 1, 2005. We
periodically review this Membership Contribution level based on our analysis of membership pricing
at other fine clubs around the country and the range of services and facilities they offer. We believe
membership in The Desert Mountain Club, with its unparat1eled six Nicklaus Signature golf courses
and many clubhouses, dining venues, fitness, spa and tennis facilities, continues to be a unique and
tremendous value to our members. Members who continue to hold convertible Non-Equity
Memberships have the right to convert to a Deferred Equity Membership and have recently received a
letter outlining the procedure for. converting their memberships.
We are also enclosing The Desert Mountain Club's Schedule of Dues and Charges that will be in
effect on January 1, 2005. We remain committed to offering an unsurpas5ed lifestyle and community
experience for our members and we thank you for your continuing support of The Desert Mountain
Club.
SincerelYl
g~
President
I&(~
Robert E. Jones, II
Senior Vice President of Club Operations
Desert Mountai.n Propcl'ties
lllnSO F:'l~t D~~~n l-lills Drive, Scottsdale, A7... 85262.3"J..~X. 4RO/595-4000, SOO/323.2780, F;" 41\0/595-4001
www.dcscrtn101.1 n t~ in. C01l1
..,
Attn: Paula Lundberg -- Re: Estate of Judith A. McClure
Page I of 1
Paul Lundberg
From: Office of RWSSL
Sent: Friday, May 11,20077:59 AM
To: Paul Lundberg
Subject: FW: Attn: Paula Lundberg -- Re: Estate of Judith A. McClure
Attachments: FAX42A5.tif
From: Deborah Whelan [mailto:DWhelan@DesertMt.com]
Sent: Thursday, May 10, 2007 5:29 PM
To: Office of RWSSL
Subject: Attn: Paula Lundberg -- Re: Estate of Judith A. McClure
Ms. Lundberg,
This email is in response to your letter dated April 26, 2007, requesting documentation indicating the value of a
Deferred Equity Golf Membership ("DEGM") as of January 7,2007. Attached is a copy of correspondence that
was sent out to the members the last time the Contribution amount of a DEGM was increased. If you have any
questions, please do not hesitate to contact me.
Debbie Whelan
The Desert Mountain Club
10550 E. Desert Hills Drive
Scottsdale, AZ. 85262
(480) 595-4000 main
(480) 595-4245 direct
(480) 595-4031 fax
dwhelant'clldesertmt.com e-mail
<<FAX42A5. tif>>
5/11/2007
.-
~
DESERT
MOUNTAIN
April 4, 2007
Paul A. Lundberg, Esq.
Reily, Wolfson, Sheffey, Schrum and Lundberg, LLP
1601 Cornwall Road
Lebanon, P A 17042-7406
Re: Requirements In Order To Convey The Desert Mountain Deferred Equity Golf
Membership In Connection With Lot 170 In The Village Of Grey Fox (40199 No. 10ih
Place, Scottsdale, Arizona) to Christopher T. McClure
Dear Mr. Lundberg:
We are in receipt of your recent letter transmitted to us on February 8, 2007, which enc:1osed a
copy of Mrs. Judith's McClure's Last Will and Testament, together with a copy of her Certificate
of Death. We confirm our records show Mrs. McClure as the owner and designated member
under the above-referenced membership in The Desert Mountain Club.
In order to convey the above-referenced membership to Christopher T. McClure, the following
requirements must be met:
1. Proof that Christopher T. McClure meets the ownership interest criteria to be the
Designated Member on the membership in connection with Lot 170, evidenced by a copy
of the recorded deed indicating how title is currently held. You informed us that title is to
be taken in the name of Christopher T. McClure.
2. Completion and return of the enclosed Desert Mountain Application For Membership,
along with required photos.
3. Completion and return of the enclosed Deferred Equity Golf Membership Agreement.
4. $65,000 Transfer Fee, which can be submitted by check or wire transfer to: National
Bank of Arizona; ABA Routing #: 122105320; Account #: 0060023896; Credit Account
of: Desert Mountain Properties, 10550 E. Desert Hills Drive, Scottsdale, AZ 85262;
Reference: Unit 5, Lot 170.
5. Any unpaid dues or other charges that may have accrued to the membership aceount at
the time of such membership transfer (at this writing, the account balanee is $734).
Enclosed are copies of the following Club documents, for Christopher T. McClure's thorough
review and retention: (a) Club Bylaws, (b) Deferred Equity Membership Plan, (c) Membership
Desert Mountain Properties
10550 East Deserr Hills Drive. Scottsdale AZ 85262-3438 . 480-595-4000.800-323-2780. Fax 480-595-4001
..Paul A. Lundberg, Esq.
April 4, 2007
Page 2
Guidelines, (d) Schedule of Dues and Charges for the current calendar year, and (e) an
informational Summary Project Description.
If there are any questions, please do not hesitate to contact me at 480/595-4245.
Sincerely,
~v~
Debbie Whelan
Membership Manager
Enclosures
Fax Transmission
1<.
:~2:~
--:-<----
oe...-- ....._
'W"MJHOVIA
Wachovia Bank N.A.
Balance Confirmation Services
POBox 40028
Roanoke, VA 24022- 7313
February 20,2007
2/20/2007 11:32 AM PAGE
1/002
Fax Server
Reference ID: 1940745
REllL Y WOLFSON SHEFFEY SCHRUM & LUNDBERG
LAW OFFlCES
1601 CORNWALL ROAD
LEBANON, P A 17042-7460
SUBJECT: Verification I Confirmation of Account and Balance Information provided for:
Customer: JUDITH A MCCLURE (SSN# 161-34'-4493)
Date of Death: January 7,2007
Account
Type
Account
Number
S6,258.31
11/28/2005
S4.39
so.oo
1/30/2007
CERTIFICATE OF DEPOSIT 247402112434378
LEGAL TITLE: JUDITH A MCCLURE
CLOSINGBALANCE: $6274.79
Deposit Account Information
Date of Death
Balance
Date
Opened
Maturity Interest Accrued YTD Date
Date Rate Interest Intl,rest Paid Closed
Average
Balance'"
CHECKING 1010059558107
LEGAL TITLE: JUDITH A MCCLURE
CLOSING BALANCE: $20932.58
$22,212.13
11121/2002
S1.23
so.oo
1/30/2007
CHECKING 1010079640037
LEGAL TITLE: JUDITH A MCCLURE
S5,871.64
6/9/2003
SO.76
so.oo
SAVINGS 3000043492038
LEGAL TITLE: JUDITH A MCCLURE
CLOSING BALANCE: S5172.02
S5,170.39
11/21/2002
SO.85
so.oo
1/30/2007
.. Du e to system limitations, we can only provide a twelve month average balance on depository accounts.
Account
Type
Account
Number
SI48,131.20
6/2912005
CONSUMER LOAN 320801000405396
LEGAL TITLE: JUDITH A MCCLURE
Loan Account Information
Date of Death
Balance
Original
Amount
Date
Opened
Monthly Interest Times Int Paid Terms
Payments Rate Late Thru
Due
Date
Fax Transmission
2/20/2007 11:32 AM PAGE
2/002
Fax Server
"
;, '
:~2:~
-~,:--
..:.- --
'W"AC-IIOVIA
RefereJlce ill: 1940745
Revolvine Credit Information
Account
Type
Account
Number
Date of Death
Balance
Credit
Limit
Date
Opened
Date Times Legal Title
Closed Late
EQUlTYUNE
4386542212667890
$0.00
8/5/2005
JUDITH A MCCLURE
VISA
4264518017851720
MBNA _ Revolving credit accounts are no longer Serviced by Wachovia Bank. Please contact MBNA at 800-477-9131.
Other Account Information
Account
Type
Account
Number
Date of Balance
Date
Opened
Date
Closed
Ledger
Collected
SAFE DEPOSIT BOX
LEGAL TITLE: JAMES RMCCLURE
JUDITI! A MCCLURE
LOCATION: HARRISBURG CAPITOL
30 N TIllRD ST
HARRISBURG PA 17101
07585396CI052
1lI14/2000
TRUST
6518899811
Trust account(s) request has been forwarded to the trust officer listed and will follow separately.
BETSY BEAUCHAMP @ 336-732-3421
CAP, BROKERAGE and SELF-DIRECTED IRA ACCOUNTS HAVE BEEN CONVERTED TO W ACHOVIA SECURITIES.
YOUR REQUEST HAS BEEN FORWARDED FOR PROCESSING and WILL BE MAILED UNDER SEPARATE COVER.
FOR QUESTIONS REGARDING CAP, BROKERAGE, or SELF-DIRECTED IRA ACCOUNTS
PLEASE CALL W ACHOVIA SECURITIES at 1-866-874-2717.
* Date of death balance does not include accrued interest.
· I f date of death OCCUITS on a weekend or a holiday, date of death balance does not include any transactions that wlere
made during that time period.
~ 1 S+tcwb
Jennifer Straub
Servicenter Associate
Phone: (540)563-7323
abs; j;
Elmer lfIIurry Auctions, Inc.
License No. AU-649-L
717-790-2240
www.richardmurryauctioneer.com
5222 East Trindle Rd.
Suite R
Mechanicsburg,Pa. 17050
INRE:
OWNER
Personal Property Appraisal
Judith Anne McClure
5020
Mechanicsburg,Pa.17055
DOD 01/07/2007
February 19,2007
This appraisal is completed as per request to determine a fair market for the following list
of personal property.
Sun Room
Freezer..................................................... .
Refrigerator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Misc.Housewares................................. ..... ....
Rattan Desk. . . . . . .. . . .. .. . .. . . . . . .. . . . . . . . . . . . . .... .. ... . . .
Toy Truck... ...... ... ...... ... ...... ....... ... ..... ........
Decoy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rattan & Glass Shelves......... ...... ... '" ...... ......
2 Rattan Stools ($5 each)...............................
Wine Rack................................................
Rocking Horse............ ....... ... ........ ...... ... .....
Bench. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .
2 Rattan Wing Chairs ($25 each)......................
Wicker Rocker. . . . . . . .. ... . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ...
Cresh... ...... ......... .... ..... ...... ....... ........ .......
Rattan Settee...... ........... ....... ...... ..... .... .......
Rattan Couch... . . . . . . . . . ... . .. . . . . . . . . .. . . . . . .. . . . . .. . .. ..
Table................ ........ ................................
Santa Doll.......... ........ ... .............................
Copper Pot. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weaving................................................... .
Contents of Shelf. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Housewares.................. ............ ... ................
40
40
30
30
10
5
30
10
5
10
20
50
10
20
30
50
10
5
10
25
5
5
Elmer lfIIurry Auctions, Inc.
License No. AU-649-L
717-790-2241
www.richardmurrvauctioneer.com
5222 East Trindle Rd.
Suite R
Mechanicsburg,Pa. 17050
Living room & Hall
Wooden Settee... . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. 40
Leather Furniture.............................................. NV
Suede Chair.................................................... 100
Leather Chair.. . . .. . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .. . .. . .. .. 1 00
Recliner......................................................... 50
Large Television......... ...... .... ..... ................ ...... 150
Copper Kettle.................................................. 30
House wares..................................................... 10
Lamp............................................................ 40
Radio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Sofa Table...................................................... 40
Horse Print..................................................... 50
Three Prints.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 250
Lamp............... .................................... ......... 40
Carnival Glass Bowl..................... ...... ............... 30
Lamp............................................................ 30
Lamp............... .............................. ............... 80
Maytag Washer & Dryer (older model)...... ...... ... ..... 100
Weaving.................................................... .... 45
Glassware...................................................... 20
2 Prints. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Leather Chair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 40
Kitchen
4 Pictures... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Table & Chairs.. ................ .................. ...... ......
Tea Pots........................................................
Mugs............................................. ..............
Microwave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . ..
Electric Mixer... . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .
Refrigerator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Knick-nocks.................................................. .
Chair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40
80
10
5
10
25
100
5
10
Elmer Murry Auctions, Inc.
License No. AU-649-L
717.790.2242
www.richardmurrvauctioneer.com
5222 East Trindle Rd.
Suite R
Mechanicsburg,Pa. 17050
Dining Room
Cherry Cabinet. . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . ...
Cranberry Creamer... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lustre Pitcher.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Opalescent Pitcher............... ........................ ....
Opalescent Dish. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Glassware.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .'-
Butterfly China. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Lenox Conspote........ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Wing Chair...... . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . ..
Mirror. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Table & Chairs................................................
Mirror. .. . . . .. . .. . .. .. . . . . . . . . . . . . . . . . . .. . . .. . . . . .. .. . . .. . . . . .. .
Sleigh Bells. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wing Chair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Shelf. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Storage Cabinet... ... ... . .. . . . . . . . . . .. . ... . .. .. . . .. ... . . . . . ...
Stained Glass... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...
Print. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contents of Mantle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Joseph & Mary Figures......................................
High Chair. . . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . . . ..
Ladies Desk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Longaberger Basket. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...
Modem Windsor Chair. . . . . . . .. .. . . . . . . . .. . . . . . . . .. . . . . . . .
Compote. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Curio Cabinet... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contents of Curio Cabinet. ..... ... ......... ... .............
450
30
15
40
20
30
20
15
40
15
100
15
40
40
10
25
20
30
20
20
10
200
30
110
50
40
20
Spare Room
Prints (7).. . . . . . .. . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . . . . . . .. .
Couch. . . . . . . . . ... . .. .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . .
Lamp & Stand...............................................
Glassware. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wicker Cabinet. . . . . . . . . . . . .. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . ..
Wicker Chest...... . . . .. . . .. . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . ..
80
20
30
30
20
30
Elmer Murry Auctions, Inc.
License No. AU-649-L
717-790-2243
www.richardmurrvauctioneer.com
5222 East Trindle Rd.
Suite R
Mechanicsburg,Pa. 17050
Studio
Taple............................................................. 15
2 Chairs... ......... ...... ............ ............ ... .... ..... .... 20
Prints............................................................. 20
Lamp........................ ..................................... 10
Frames............... .................................... ........ 30
Supplies.... ..... ... .................. ......... ..... .... ......... 20
TV......................................................,........ 3P
Cabinet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Table. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 20
Table....... ............. .... ..... .... ... .... ....... .... ... .... ... 10
Lamp............................................................. 5
Shelf. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 Q
Chair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . .. NV
Globe...... ............. ..... .................. ...... ... ... ...... 5
Computer, Desk & Chair....... ....... ... ..................... 100
Lamp............................................................. 10
Lamp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . ... 5
Crib.... ..... ... ........... .... ...... ...... ... ...... ...... ... ...... 30
Chest of Drawers. . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . .. . . . . . . .. . .. .... 35
Figurines......................................................... 20
Sweeper... ......................... ..... ... ... ... ..... .... ....... 15
Books...... ......... ...... ........................... ... .......... 20
Pet Cages.... ..... ...... ... ...... ...... ...... ... ............... ... 15
Contents of Closet.. .... ...................................... ... 35
Stuffed Animals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .. NV
Bed Room
Bedroom Suite. . . . . .. .. . .. .. . .. . . .. .. . . . . . . . . . . .. . . .. . .. .. . .. . .. . 1000
Print. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Couch............................................................. NY
Ice Box... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Shelf............ ............... ........................ ... ... ...... 20
Books. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 20
Lamp............................................................... 5
Elmer Murry Auct;ons~ Inc.
License No. AlI-649-L
717-790-2244
www.richardmurrvauctioneer.com
5222 East Trindle Rd.
Suite R
Mechanicsburg,Pa. 17050
Leather Furniture.............................................
Books.. . . . . . . . .. . . . . . . . . . . . . . .. . . . . . . . . .. . .. . . . . .. . . . . . . . . . . . ...
Cedar Chest. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .
Urn.............................................................
Vase........................................................... .
Lamp............................................................
Coffee Table...... ...... ......... .... ..... .... .... .... ... ... ...
Pair of Lamps. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...
Mirror. . . .. . .. . . .. . . . . . . .. . . . . .. . . . . . .. . . . . .. . .. . . . . . . . . . . . . . .. ..
Jewelry Cabinet. . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . .. . . . . ....
Jewelry Case...... ...... ... ... .... ..... ...... .., ...... ... ... ...
Jewelry: Consist Mostly of Rings. ........... ............ ...
100
20
90
20
10
5
30
10
30
30
80
1800
Upon observation of the aforementioned items it is to the best of my knowledge and
belief that $7,710 Seven Thousand Seven Hundred and Ten Dollars would represent a
fair market value.
-----
February 7, 2007
Bonnie Hartz
Reilly, Wolfson, Sheffey,
Schrum & Lundberg, LLP
1601 Cornwall Road
Lebanon, P A 17042
RE: Date of Death Values for Judith McClurelRogele Inc. Retirement Account
Dear Bonnie:
Listed below are the date of death values for Judith McClure. Since the date falls on a
weekend (January 7, 2007), I am providing values for January 5th and January 8th, 2007.
Fund Name # of Units 1/5/07 UnitValuel 1/8/07 Unit Valuel
1/5/07 Dollar Value 1/8/07 DollarValue
Capital World Gr & Inc 821.4917 1.963317508 1.964557654 \ ??J."<<
$1,612.85 $1,613.88 \\....1
Federated Kauf. SmCap 1557.6194 1.282772724 1.28371175 C\ q; ~:0
$1,998.07 $1,999.54 \1:\
('
Heritage Mid Cap Stock 4342.1176 1.602259606 1.607318923 ~ \ t
I .
$6,957.20 $6,979.17 u~ w
i.J'5
JPM MidCap Value 4903.5844 1.867308925 1.868593376 G\ISGt
$9,156.50 $9,162.80 I
/.k~
Legg Mason Value Trust 5847.9325 1.173326664 1.172622763 sC\
$6,861.54 $6,857.42 LD~
Please do not hesitate to contact me with any additional questions you may have.
Sincerel y,
Patricia L. Sherick,
CSA
The above summary/prices/quotes/statistics have been obtainedfrom sources we believe to be ,'eliable but are not necessarily
complete and cannot be guaranteed. TIle information contained in monthly account statements and confirmations reflect all
transactions processed by Smith Barney, and as such supersedes all other reports for financial and tax purposes. This
information does not supersede or replace your monthly Smith Barney Client Statement. Smith Barney is a division and service
mark of Citigroup Global Markets Inc. Member SIPC.
.
-~~
--<'~
Wachovia Bank, NA
NC6732
100 North Main Street
Winston-Salem, NC 27150
WACHOVIA TRUST
March 6, 2007
Reilly, Wolfson, Sheffey, Schrum and Lundberg LLP
Attn: Paul Lundberg
1601 Cornwall Road
Lebanon, P A 17042-7406
RE: Judith McClure IRA (6518899811)
Dear Mr. Lundberg:
As requested in your letter of February 12th, enclosed is a Date of Death Valuation for the above-
referenced account.
Please let us know if there is any additional information you need with regard to the !udith
McClure IRA account.
Sincerely,
lt~w .R~~
Lisa W. Rogers
Trust Associate
T"' ,
.r',J1ClOSUres
ESTATE VALUATION
ELIJAH WATSON 3/6/07
LI SA ROGERS
Date of Death: 01/07/2007
Valuation Date: 01/07/2007
Processing Date: 03/06/2007
Estate of: MCCLURE
Account: 000006518899811
Report Type: Date of Death
Number of Securities: 31
File ID: EVI 20070306 6518899811
- -
Shares
or Par
Securi ty
Description
Hi gh/ Ask
Low/Bid
Mean and/or Div and Int Security
Adjustments Accruals Value
1)
47263.97 WACHOVIA PT MONEY MARKET (997981006)
47,263.97
2) 50000 ALABAMA PWR CO (010392DZ8)
Financial Times Interactive Data
DTD: 10/22/2002 Mat: 10/15/2017 5.5%
01/05/2007
01/08/2007
1nt: 10/15/2006 to 01/07/2007
3) 50000 ANHEUSER BUSCH COS INC 1035229CH4)
Financial Times Interactive Data
DTD: 04/16/2001 Mat: 04/15/2011 6%
01/05/2007
01/08/2007
Int: 10/15/2006 to 01/07/2007
4) 50000 BEAR STEARNS COS INC (073902BZO)
Financial Times Interactive Data
DTD: 01/15/2002 Mat: 01/15/2007 5.7%
01/05/2007
01/08/2007
1nt: 07/15/2006 to 01/07/2007
5) 50000 CREDIT SUISSE USA INC 12254lLAC7)
Financial Times Interactive Data
DTD: 01/11/2002 Mat: 01/15/2012 6.5%
01/05/2007
01/08/2007
Int: 07/15/2006 to 01/07/2007
Accrual
100.40625 AlB
100.31300 Mkt
100.359625 50,179.81
626.39
102.7B125 A/B
102.70580 Mkt
102.743525 51,371.76
683.33
100.00000 AlB
100.00170 Mkt
100.000850 50,000.43
1,361.67
105.65625 A/B
105.57710 Mkt
105.616675 52,808.34
1,552.78
101. 75000 A/B
101.69410 Mkt
101.722050 50,861.03
1,166.67
100.53125 AlB
100.49900 Mkt
100.515125 50,257.56
720.00
10.45000
10.450000 127,712.54
114.49
10.11000
10.110000 34,181.21
31. 62
9.89000 Mkt
9.890000 49,941.26
61 50000 MERRILL LYNCH & CO INC 1590188JP4)
Financial Times Interactive Data
DTD: 02/17/1999 Mat: 02/17/2009 6%
01/05/2007
01/08/2007
Int: 08/17/2006 to 01/07/2007
7) 50000 TARGET CORP (87612EAG1)
Financial Times Interactive Data
DTD: 10/10/2001 Mat: 10/01/2008 5.4%
01/05/2007
01/08/2007
Int: 10/01/2006 to 01/07/2007
8) 12221. 296 EVERGREEN SELECT FIXED IHCOI~E (2999081031
CORE BD CL
01/07/2007
9) 3380.930586 EVERGREEN SELECT FIXED INCOME (299908608)
LTD DURATION I
01/07/2007
Accrual
101 5049.672639 PIMCO FDS PAC INVT MGMT SER (693390841)
HIGH YIELD FD
Mutual Fund (as quoted by NASDAQ)
01/05/2007
Page 1
This report was produced with EstateVal, a product of Estate Valuations & Pricing Systems, Inc. If you have qu,estions,
please contact EVP Systems at (818) 313-6300 or www.evpsys.com. (Revision 7.0.4)
Date of Death: 01/07/2007
Valuation Date: 01/07/2007
Processing Date: 03/06/2007
Estate of: MCCLURE
Account: 000006518899811
Report Type: Date of Death
Nwnber of Securities: 31
File ID: EVl 20070306 6518899811
- -
Mean and/or Div and Int SecuIlty
Adjustments Accruals Value
Shares
or Par
Security
Description
High/Ask
Low/Bid
111 325 ALCOA INC (013817101)
COM
New York Stock Exchange
01/05/2007
01/08/2007
29.24000 28.49000 H/L
29.02000 28.28000 H/L
28.757500
72.08000 71. 01000 H/L
71.89000 70.79000 H/L
71. 442500
12)
150 AMGEN INC 10311621001
COM
The NASDAQ Stock Market LLC
01/05/2007
01/08/2007
131
300 BANK OF AMERICA CORPORATION 1060505104)
COM
New York Stock Exchange
01/05/2007 53.59000
01/08/2007 53.64000
53.265000
53.03000 H/L
52.80000 H/L
141 300 HEWLETT PACKARD CO (4282361031
COM
New York Stock Exchange
01/05/2007 42.27000 41.48000 H/L
01/08/2007 42.30000 41.94000 H/L
41. 997500
15) 200 ILLINOIS TOOL WKS INC 1452308109)
COM
New York Stock Exchange
01/05/2007 46.28000 45.68000 H/L
01/08/2007 46.33000 45.78000 H/L
46.017500
Div: 0.21 Ex: 12/27/2006 Rec: 12/31/2006 Pay: 01/22/2007
16) 228 INTEL CORP (458140100)
COM
The NASDAQ Stock Market LLC
01/05/2007 21.15000 20.76000 H/L
01/08/2007 21. 34000 20.95000 H/L
21. 050000
17) 200 JP MORGAN CHASE & CO (46625HI00)
COM
New York Stock Exchange
01/05/2007 48.25000 47.63000 H/L
01/08/2007 48.06000 47 . 32000 H/ L
47.815000
Div: 0.34 Ex: 01/03/2007 Rec: 01/05/2007 Pay: 01/31/2007
181 125 JOHNSON & JOHNSON (4781601041
COM
New York Stock Exchange
01/05/2007 67.25000 66.50000 H/L
01/08/2007 66.75000 66.05000 H/L
66.637500
19) 200 MEDTRONIC INC (5850551061
COM
New York Stock Exchange
01/05/2007 53.60000 52.76000 H/L
01/08/2007 54.19000 53.36000 H/L
53.477500
Div: 0.11 Ex: 01/03/2007 Rec: 01/05/2007 Pay: 01/26/2007
201 200 MICROSOFT CORP 1594918104)
COM
The NASDAQ Stock Market LLC
01/05/2007 29.75000 29.45000 H/L
01/08/2007 30.10000 29.53000 H/L
29.707500
Page 2
9,346.19
10,716.38
15,979.50
12,59~.25
9,203.50
42.00
4,799.40
9,563.00
68. DO
8,329.69
10,695.50
22.00
5,941.50
This report was produced with EstateVal, a product of Estate Valuations & PIlcing Systems, Inc. If you have questions,
please contact EVP Systems at (8181 313-6300 or www.evpsys.com. (Revision 7.0.41
Date of Death: 01/07/2007
Valuation Date: 01/07/2007
Processing Date: 03/06/2007
Shares
or Par
Security
Description
21) 500 ORACLE CORP (68389X105)
COM
The NASDAQ Stock Market LLC
01/05/2007
01/08/2007
22) 100 PEPSICO INC 1713448108)
COM
New York Stock Exchange
01/05/2007
01/08/2007
23) 100 TARGET CORP 187612E106)
COM
New York Stock Exchange
01/05/2007
01/08/2007
17.76000 17.44000 H/L
17.93000 17.44990 H/L
17.644975
63.22000 62.70000 H/L
63.27000 62. B6000 H/L
63.012500
58.10000 57.15000 H/L
57.42000 56.93000 Hn
57.400000
High/Ask
100 UNITED PARCEL SERVICE INC (911312106)
CL B
New York Stock Exchange
01/05/2007 75.04000
01/0B/2007 74.59000
24 )
251 2143.471 ARTISAN FDS INC 104314H1051
SMALL CAP FD
Mutual Fund (as quoted by NASDAQ)
01/05/2007
261 B22.873 DAVIS NY VENTURE FD INC 1239080401)
CL Y
Mutual Fund las quoted by NASDAQ)
01/05/2007
27) 972.344 HARBOR FD 1411511504)
CAP APPR INSTL
Mutual Fund (as quoted by NASDAQ)
01/05/2007
2B) 1939.489 HARBOR FD (411511843)
S CAP VAL INST
Mutual Fund (as quoted by NASDAQ)
01/05/2007
29) 745.441 WT MUT FD (92934R769)
CRM MDCP VAL I
Mutual Fund las quoted by NASDAQ)
01/05/2007
30) 668.85 WELLS FARG FDS TR (9499153671
ADV ENTRPRSE I
Mutual Fund (as quoted by NASDAQ)
01/05/2007
311 4593.603 DELJ\WARE POOLED TR 12462483061
INTL EQTY PTFL
Mutual Fund (as quoted by NASDAQ)
01/05/2007
Page 3
Estate of: MCCLURE
Account: 000006518899811
Report Type: Date of Death
Number of Securities: 31
File 10: EVI_20070306_6518899811
Low/Bid
Mean and/or Div and Int Security
Adjustments Accruals Value
8,822.49
6,301.25
5,740.00
73.62000 H/L
73.74000 H/L
74.247500
7,424.75
18.06000 Mkt
18.060000
38.52000 Mkt
38.520000
33.58000 Mkt
33.580000
20.94000 Mkt
20.940000
29.64000 Mkt
29.640000
30.83000 Mkt
30.830000
23.11000 Mkt
23.110000
38,711.09
31,697.07
32,651. 31
40,612.90
22,09'4.87
20,620.,65
106,158.17
This report was produced with EstateVal, a product of Estate Valuations & Pricing Systems, Inc. If you have questions,
please contact EVP Systems at (81B1 313-6300 or www.evpsys.com. IRevision 7.0.4)
Date of Death: 01/07/2007
Valuation Date: 01/07/2007
Processing Date: 03/06/2007
Estate of: MCCLURE
Account: 000006518899811
Report Type: Date of Death
Number of SecUlities: 31
File ID: EVI 20070306 6518899811
- -
Total Value
Total Accrual
Total $988,975.32
$982,586.37
$6,388.95
Page 4
This report was produced with EstateVal, a product of Estate Valuations & Pricing Systems, Inc. If you have questions,
please contact EVP Systems at 1818) 313-6300 or www.evpsys.com. IRevision 7.0.41
W ACHOVIA TRUST
TRADITIONAL INDIVIDUAL RETIREMENT TRUST ACCOUNT
ATTACHMENT
II. Deshrnation of Beneficiarv
2.01 Primary Beneficiary
I hereby designate the following person(s) or entity named below as my primary
beneficiary or beneficiaries to receive my Account payable by reason of my death:
Name Relationship Date of Birth Tax lJ) # Address Dollar
Amount/Percent
-, Interest
West Shore Evangelical Friend West Shore Evangelical $15,000
Free Church Free Church
Restricted to Medical 1345 Williams Grove Road'
Emergency Fund Mechanicsburg, P A 17055
as directed by John
Nesbitt, Trustee
West Shore Evangelical Friend West Shore Evangelical $5,000
Free Church Free Church
Restricted to Patient 1345 Williams Grove Road
Advocacy Ministry Mechanicsburg, P A 17055
as directed by Marilyn
Smith, Trustee
Tobi Gamble Friend 9583 Cordova Drive $10,000
Highlands Ranch, CO
80130
Judy Jaxtheimer, VMD Friend NeeMon, PA $50,000
Joanne Hood Friend 636 State Street $10,000
Lemoyne, P A 17043
Brian & Penny Hood Friends 335 Cragmoorr Road $40,000
York Haven, PA 17370
Michele A. Jones Friend 330 South Washington St. $25,000
Mechanicsburg, P A 17055
James Robert McClure, Son 10/15/1967 170-54-8224 1432 Sconsett Way 25%
IV New Cumberland, P A
17070
Jennifer R. Mathias Daughter 11/09/1969 171-54-0117 1316 Mountain Laurel 25%
Circle
Harrisburg, PAl 71 0 1
Christopher Todd Son 06/12/1970 170-54-2734 5016 Kylock Road 25%
McClure Mechanicsburg, PA 17055
Allison Lesher Daughter 02/02/1973 170-54-1166 5008-Firethorn-bme 25%
Mechanicsburg, PA 17055-
4805
THE REMAINING BALANCE IN THE ACCOUNT AFTER THE ABOVE
BEQUEST:
Jk
-
CATERING
JDK CATERING, INC.
EIN #25-1806896
1 BISHOP PLACE
CAMP Hill, PA 17011.5801
PH: (717) 730-4661
FAX: (717) 730-4662
Invoice
DATE
INVOICE #
~{(:WII'J/"'_I",t;;<<,,---
1 /13/2007
E09278
BILL TO:
GREG LESHER
5009 HART CROSSING
MECHANICS BURG, P A 17055
P.O. NUMBER
TERMS
PROJECT
QUANTITY
3
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ATTENTION CUSTOMERS: THIS PAGE IS BEING PROVIDED
AS PART OF YOUR MONTHLY STATEMENT BECAUSE WACHOVIA
RECEIVED A CHECK IMAGE FROM ANOTHER FINANCIAL INSTITUTION
IN PLACE OF AN ORIGINAL CANCELED CHECK(S). THE FRONT OF
EACH CHECK IS DISPLA YED AS AN IMAGE. THIS PAGE WILL APPEAR
IN YOUR STATEMENT ANY MONTH WE RECEIVE A CHECK IMAGE.
11/16/2006 thru 12/15/2006
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, ,
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LAST WILL AND TESTAMENT
OF
JUDITH A. McCLURE
I, JUDITH A. McCLURE, a resident of the County of Cumberland
and Corrunonwealth of Pennsylvania, being of sound and disposing
mind and memory I do hereby make, publish and declare this to be my
Last Will and Testament I hereby revoking all other Wills and
Codicils heretofore made by me.
.!
FIRST:
(a) For informational purposes I
at the time I execute this Will I have four (4) children: J]U~ES R.
McCLURE I IV; JENNIFER R. MATHIAS; CHRISTOPHER T. McCLURE; and
ALLISON M. LESHER.
(b) I direct my funeral and last sickness expenses and my
just debts to be paid as soon as possible after the probate of
this my Will. After the payment of my debts and said expenses I I
glvel devise and bequeath my property and estate as hereinafter
provided.
(~)
(c) I bequeath such items of my tangible personal property
as are specifically itemized on a list, if any, signed by me at
the end thereof, and which refers to this Will or is found with
this, my Will, to the person (s) named thereupon to receive such
items.
SECOND:
specific bequests:
(a) I give, devise and bequeath all of my shares of stock
that I own in ROGELE, INC. to CHRISTOPHER T. McCLURE and .ALLISON
I -hereby make the following
M. LESHER, or the survivor of them, in equal shares, per capita.
(b) I give, devise and bequeath my house located at. 40199
North 107th Place, scottsdale, Arizona along with the golf
membership in The Desert Mountain Club related to such house to my
son CHRISTOPHER T. McCLURE, if he shall survive me.
(c) At the present time, McMale Associates, L.P., a
Pennsylvania Limited Partnership (the "Partnership"), OVlffiS Lot
171, Desert Mountain Phase III Unit 5, Part 21 40167 1\:'. 107th
Street I Scottsdale, Maricopa County I Arizona (the "Lot") and also
owns a Deferred Equity Gold Golf Membership in The Desert Mountain
Club (the "Membership"). I own 3 00 of the 500 General Partnership
Uni ts in the Partnership and 9500 Limi ted Partnership Uni 1:.S . My
son JAMES R. McCLURE, IV owns 200 General Partnership Units in the
Partnership. I intend to cause the Partnership to sell the Lot
2
"
()
( ')
'< .
prior to my death. In the event that the Lot has been transferred
from the Partnership prior to my death, then I give devise. and
bequeath my interests in the General and Limited Partnership units
that I own in the Partnership to my son JAMES R. .McCLURE, IV, if
he shall survive me. In the event that the Lot has not been
transferred from the Partnership prior to my death, my Executors
shall retain my units in the Partnership until. the Lot is sold.
An amount equal to 98% of the proceeds from the sale of the Lot
remaining after paYment of all obligations incurred to aC~lire the
Lot and the Membership shall be distributed to my estate, and 2%
of the remalnlng proceeds shall be distributed to Jl~ES R.
McCLURE, IV. Thereafter, my uni ts in such Partner-ship (a.s owner
of the Membership) shall be distributed to JAMES R. McCLURE, IV,
if he shall then be living.
THIRD: All the rest, residue and
remainder of my property that I own at the date of my deat:h, both
real and personal, and of every kind and description, wherever
situated, to which I may be legally or equitably entitled at the
time of my death (my "Residuary Estate"), I give, devise and
bequeath to my descendants who survive me, In equal shares, per
stirpes, subject to the following provisions.
(a) Whenever, under any of the foregoing provisions of this
Will, my Executor or my Trustee would be authorized or reqLlired to
3
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distribute B.ny amount, whether of income or of principal, to my
daughter JENNIFER R. MATHIAS, my Trustee shall retain (or, in the
case of my Executor, shall transfer to my Trustee to retain) such
property as a separate fund in trust for the primary benefi t of
JENNIFER R. MATHIAS. My Trustee shall invest and reinvest any
fund so retained, add to such Fund any net income therefrom, and
pay to JENNIFER R. MATHIAS so much of such fund as my 'rrustee
shall, from time to time and in the absolute discretion of my
Trustee, deem appropriate for the maintenance, health and well
being of JENNIFER R. MATHIAS. If JENNIFER R. MATHIAS shall die
before all of such fund shall have been distributed to her, such
fund shall be distributed to her then living lineal descendants,
in equal shares, per stirpes, or, in default of any such
descendant, to my then living descendants; provided, however, that
if any property shall become distributable pursuant t:o the
foregoing provisions of this sentence to an individual for whose
primary benefit a Trust shall then be held under the provisions of
this Article, such property shall not be distributed to such
individual but shall rather be added to and thereafter dealt with
as part of the principal of such Trust.
(b) Whenever, under any of the foregoing provisions of this
Will, my Executor would be authorized or required to distTibute
any amount to an individual who shall not have attained the age of
twenty-one (21) years, I authorize and direct my Execui:or to
4
,/---'.
( )
()
,\1
transfer such fund to my Trustee to be retained as a separat:e fund
in Trust for the primary benefit of such individual.
My ']'rustee
shall invest and reinvest any funds so retained, add to such Fund
any net income therefrom, and pay to such individual so rr~ch of
such fund as my Trustee shall, from time to time, in his absolute
discretion, deem appropriate for the maintenance, health and
education of such individual.
When such individual shall attain
the age of twenty-one (21) years, the entire remaining balance of
such principal shall be distributed to him.
I f such indi vi dual
shall die before all of such principal shall have become
distributable to him as provided in this subparagraph, my ~rrustee
shall distribute such principal to the then living' descendants of
such individual, in equal shares, per stirpes, or, In default of
any such descendant, to my then living descendants; provided,
however, that if any property shall become distributable pursuant
to the foregoing provisions of this sentence to an indivimlal for
whose primary benefit a Trust shall then be held under the
provisions of this Article, such property shall not be distTibuted
to such individual but shall rather be added to and thereafter
dealt with as part of the principal of such Trust.
FOURTH:
I nominate,
consti tut:e
and
appoint CHRISTOPHER T. McCLURE and ALLISON M. LESHER, to be the
Co-Executors of this my Last Will and Testament.
5
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FIFTH:
I
nominate,
constitute
and
appoint CHRISTOPHER T. McCLURE and ALLISON M. LESHER to be the
Trustees of any trust created hereunder.
SIXTH:
No person to whom any interest
is given, whether in income or principal, shall have the power to
anticipate, alienate, dispose of or encumber such interest or
income by anticipation or to subj ect the same to his dE~bts or
liabilities, and no such interest or income shall be liable for
his debts or liabilities.
SEVENTH:
All estate,
inheritance and
other death taxes, together with interest and penalties thereon,
payable with respect to property or interests passing under my
Will or any codicil thereto, shall be paid out of the principal of
my Residuary Estate without apportionment.
EIGHTH:
I confer upon my Executor the
right to sell or otherwise convert any real or personal p:~operty
at public or private sale, at such time or times, in such manner,
and for such price or prices, and upon such terms and conditions
as my Executor shall determine, and to exeC-Jte and deliver good
and sufficient conveyances, assignments and transfers thereof,
6
(-')
(')
wi thout liability
consideration; to
of any purchaser for
borrow money and to
the application of any
secure its paYffient by
mortgage of real or personal property, pledge of investments or
otherwise, without liability on the part of the lenders to see to
the application thereof; to retain any investments at discretion;
to invest and reinvest at discretion, without restriction to so-
called "legal investments i" to make distribution in cash or In
kind; and to do all other acts and things necessary or appropriate
in the management, administration and distribution of my estate.
NINTH: I direct that no fiduciary
appointed hereunder shall be required to give any bond, and that
if, notwithstanding this direction, any bond is required by any
law, statute or rule of court, no surety shall be rE~quired
thereon.
TENTH:
If there shall be insufficient
evidence that any individual referred to in this Will and I died
otherwise than simultaneously, I direct that, for all purposes of
this Will, I shall be conclusively presumed to have survived such
individual.
ELEVENTH:
All
words
used
in
this
document will be construed to be of such gender or number as the
7
(
:'--""
)
circumstances require.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this
L.:J- day of ~~
, 2005.
-
~dA7~~
J /' irE A. MctLURE .
SIGNED, SEALED, PUBLISHED and DECLARED by JUDITH A. :McCLURE,
Testatrix above named, as and for her Last Will and Testament, and
we, at her request, in her presence, and in the presence of each
our names as attesting witnesses thereof.
Address 1&::71 ~&t.~ IL~ cQf(./ {1-----
ItDG Co~LL R.c)LO-b ~
Address ( I I.
8
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A C K NOW LED G MEN T
COMMONWEALTH OF PENNSYLVANIA
SS.
COUNTY OF LEBANON
I, JUDITH A. McCLURE, Testatrix, whose name lS signed to the
attached or foregoing instrument, having been duly ~lalified
according to law, do hereby acknowledge that I signed and executed
the instrument as my Last will and Testament; that I signed it
willingly; and that I signed it as my free and voluntary act for
the purposes therein expressed.
...::;" -
~~ #" ~~~e?t~
J ITH A. McCLURE
/
Sworn or affirmed to and
acknowledged before me by
JUDITH A'dMcCLURE, ~ Testatrix,
this ,~'" day of ~ ,ch . ,
2005.
\\'1)'h-C~'" k-- 'P. ~'-, -<' ~ 0L~
NOTARY - LIC
NOTARIAL SEAL
MARYANN L. KREIDER, NOTARY PUBLIC
NORTH CORNWALL 1WP" COUNTY OF LEBANON
MY COMMISSION EXPIRES MARCH 2, 2006
9
(
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."
A F F I D A V I T
COMMONWEALTH OF PENNSYLVANIA
SS.
COUNTY OF LEBANON
We, Q,L-J\ ~. LvJ\JG~ and _b:xw-<c-_ L \-\~I-+L-
the witnesses whose names are signed to the attached or foregoing
instrument, being duly qualified according to law I do depose and
say that we were present and saw the Testatrix sign and execute
the instrument as her Last Will and Testament; that she signed
willingly and that she executed it as her free and voluntary act
for the purposes therein expressed; that each of us in the l1earing
and sight of the Testatrix signed said Last will and Testament as
witnesses; and that to the best of our knowledge the Testatrix was
at that time eighteen (18) or more years of
/
./
of sound mind and
under no constraint or undue
Sworn and affirmed to and
acknowledged before me by
U, \.\ ~, \ 0';--d\.-re~ and
~"p,r L, ~c~~ '
Witnes~es, this ~~ day
of l'('o,.:rch ,2005 .
{\(Y"\" "-;5:";"-":--- j) ;<., Q'~ rt0L-
NOTARY PUBLIC
NOTARIAL SEAL
MARY ANN L, KREIDER. NOTARY PUBLIC
NORTH CORNWALL 1WP" COUNT'! OF LEBANON
MY COMMISSION EXPIRES MARCH 2, 2006
10
PROOF OF PUBLICATION
State of Pennsylvania, County of Cumberland
Tammy Shoemaker, Classified Ad~ertising Manager, of The Sentinel, of the County
and State aforesaid, being duly sworn, deposes and says that THE SENTINEL, a
newspaper of general circulation in the Borough of Carlisle, County and State
aforesaid, was established December 13th, 1881, since which date THE SENTINEL has
been regularly issued in said County, and that the printed notice or publication
attached hereto is exactly the same as was printed and published in the regular editions
and issues of THE SENTINEL on the following day(s)
February14, 21,28,2007
COpy OF NOTICE OF PUBLICATION
Affiant further deposes that he/ she is not
interested in the subject matter of the
aforesaid notice or advertisement, and that
all allegations in the foregoing statement
as to time, place and character of
~nt?~L
Sworn to and subscribed before me this
28th. day of February, 2007.
C~~i~~
My commission expires:q I'/Of
COMMONWEA~~~~NNSYLVANI']II,
Christina L. Wolfe. Notaty Public
Carlisle Boro, Cumbertancl County
My Commission Expires Sept 1. 2008
Member. Pennsylvania Association Of Notaries
PROOF OF PUBLICATION OF NOTICE
IN CUMBERLAND LAW JOURNAL
(Under Act No. 587, approved May 16, 1929), P. L.1784
COMMONWEAL TH OF PENNSYLVANIA
SS.
COUNTY OF CUMBERLAND
Lisa Marie Coyne, Esquire, Editor of the Cumberland Law J ouma1, of the County and
State aforesaid, being duly sworn, according to law, deposes and says that the Cumberland Law
J oumal, a legal periodical published in the Borough of Carlisle in the County and State aforesaid,
was established January 2, 1952, and designated by the local courts as the official legal
periodical for the publication of all legal notices, and has, since January 2, 1952, been regularly
issued weekly in the said County, and that the printed notice or publication attached hereto is
exactly the same as was printed in the regular editions and issues of the said Cumberland Law
Journal on the following dates,
V1Z:
February 16, and February 23, and March 2, 2007
Affiant further deposes that he is authorized to verify this statement by the Cumberland
Law Journal, a legal periodical of general circulation, and that he is not interested in the subject
matter of the aforesaid notice or advertisement, and that all allegations in the foregoing
statements as to time, place and character of publication are true.
/L
McClure, Judith A., dec'd.
Late of Lower Allen Township.
Executors: Christopher T. Mc-
Clure and Allison M. Lesher c/o
Paul A Lundberg. Esquire. Reilly.
Wolfson, Sheffey, Schrum and
Lundberg LLP. 1601 Cornwall
Road. Lebanon, PA 17042.
Attorneys: Paul A Lundberg, Es-
quire. Reilly, Wolfson. Sheffey.
Schrum and Lundberg. LLP,
1601 Cornwall Road. Lebanon.
PA 17042.
SWORN TO AND SUBSCRIBED before me this
2 day of March, 2007
L
NO ir-\l~MEAL
LOIS E, SNYDER, Notary Public
.. ':.,'Iisle Bora, Cumberland County
~. I mission Expires March 5. 2009
w~~~
.
Form 1120
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Preparer's
Use Only
124 Pg 7
OMS No. 1545-0123
U.S. Corporation Income Tax Return
For calendar year 2005 or tax year beginning 8/01/05 ,ending .....7 I ~ ~ ( o. ?
~ See se' arate 'instruction!l.' .
Name Number, street, and room or suite no. City or town, state, and ZIP code B Employer identification number
If a P.O. box, see instructions.
ROGELE INC. 23-1597186
C
2005
Date incorporated
8/04/1961
Total assets (see Instructions)
6 714 874
16 064
11 960
4 104
Ql
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.5
30
31
32
33
34
35
36
~
Date
Firm's name (or yours
if self-employed), ~
address, and ZIP code
BROWN SCHULTZ SHERIDAN
210 GRANDVIEW AVENUE
CAMP HILL PA
17011
. Department of the Treasury
Internal Revenue Service
A Check If:
1 Consolidated return Use IRS
(attach Form 851) I b I
2 Personal holding co. a e.
(attach Sch. PH) Otherwise,
3 P~e::?~~~~~{~i~;)corp. print or 1025 S. 21ST STREET
type.
4 art~~~ub~~-~!~qUlred BARRI SBURG PA 1 71 0 5 -1 757 D
E Check If: (1) Initial return (2) Final return (3) Address change $
1a Gross receipts/sales I 16 , 064 , 8641b Less returns & allowances I Ic Bal ~
2 Cost of goods sold (Schedule A, line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Gross profit. Subtract line 2 from line 1 c .......................................... . . . . . . . . . . . . . . . . . .
4 Dividends (Schedule C, line 19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Gross rents
............................., ........... '.,. ,...... ... ...... ........ ... .....
7 Gross royalti~s ................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Capital gain net income (attach Sch. D (Form 1120)) ................................................
9 Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)
10 Other income (see instructions-attach schedule) ...................:::::::::::: ~~~ : : $:~: ::~: :
11 Total income. Add lines 3 throu h 10 ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ~
12 Compensation of officers (Schedule E, line 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . .
13 Salaries and wages (less employment credits) ..............,................ ,. . . . . . . . . . . ... ,. . .. . . .
14 Repairs and maintenance .........,... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . , . . . . . . . . . . . . . . . . . . . . .
15 Bad debts
16 Rents
..... ................................................ ........................ ......... .....
17 Taxes and licenses
18 Interest
19 Charitabi~ .~~~trib~ii~~~' i~~~ 'i~~i;~~ti~~~ 'f'~r'1 0% 'Ii~it~ti~~i : : : : : : : : : : : : : : : : : : : : : ~$:;E; : : $~t : ~: :
20a Depreciation (attach Fomn 4562) . .. .. .. . .. . .. . .. . .. .. .. .. .. . .. . .. . . .. 20a 852 737
b Less depreciation claimed on Schedule A and elsewhere on retum 20b
21 Depletion.. . . . . . . . . . . . . . . . . , , , . , . . . . . , , , , , , . . , . . . . , . , . . . . . . . . . , . . . , . . . . . , . . . . . . . . . , . . . . . . . . . . . . . .
22 Advertising..... . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .'.
23 Pension, profit-sharing, etc" plans ......,...,......................................................
24 Employee benefit programs ..,......,............. '.: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25 Domestic production activities deduction (attach Form 8903)
26 Other deductions (attach schedule) .......................:::::::::::::::::::: ~~~ : : $:~: : ~: :
27 Total deductions. Add lines 12 through 26 .................... ......... ...,....................... ~
28 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11
29 Less: a Net operating loss deduction (see instructions) .............. 29a
b S ecial deductions Schedule C, line 20 .................... 29b
Taxable income. Subtraclline 29c from line 28 (see instructions If Schedule C, line 12, was completed) .
Total tax (Schedule J, line 11) . .. .. .. . . . .. . . . .. . .. . .. .. .. .. . . . .
Payments: a 2004 overpayment 32
credited to 2005 " a
b 2005 estimated tax payments. . 32b 14 8 0 0
c ~~s~o~~oUgku~~. ~~~I~~~ I~r. . . . . . . 32c d Bal ~
e Tax deposited with Form 7004 ........,.........,....................
f Credits:
(1) Form 2439 (2) Form 4136
Estimated tax penalty (see instructions). Check if Form 2220 is attached ................
Tax due. If Iine32g is smaller than the total of lines 31 and 33, enter amount owed
Overpayment. " line 32g is larger than the total of lines 31 and 33, enter amount overpaid. . . . . . . . . . . . . .
Enter amI. of line 35 ou want: Credited to 2006 estimated ta" Refunded ~
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules
and statements, and to the best of my knowledge and belief, It is true, correct, and complete. Deciaratlon
of preparer (other than taxpayer) is based on all Information of which pre parer has any knowledge.
~ I
81 nature of officer Date
Preparer's ll...
sl nature ,.
& FRITZ
1c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20c
21
22
23
24
25
. 26
27
28
864
262
602
28 780
8
8
4 150
1 084
232
697
370
449
428
777
629 723
83 126
5 725
852 737
31 089
33 238
395 325
3 630
681 295
4 033 093
117,356
117 356
43 598
14 800
28 798
Pre parer's S8N or PTIN
P00004835
25-1644159
Phone no.
717-761-7171
b2~ Privacy Act and Paperwork Reduction Act Notice, see separate instructions.
Form 1120 (2005)
Inventory at beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases ..................................................................................................
Cost of labor ......................................................................................... . . . . . . .
Additional section 263A costs (attach schedule) ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other costs (attach schedule) . . . . . ..... ... . . ..... . .. . . . .. . ... . .. . . ... . .. . .. .. . . . . . ... ... . ........ .l?~.. ~.
Total. Add lines 1 through 5 ........................................................................... . . . . . . .
Inventory at end of year ............................................................................... . . . . . . .
Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Check all methods used for valuing closing inventory:
(i) ~ Cost
(ii) Lower of cost or market
(iii) Other (Specify method used and attach explanation.) ~ .................................................... .................8....
~~:~~ :: :~:r:I;~si:V:~~~~O:t~:~~:~::lp~~~~~iS' i~~ y~'~r' i~r' ~~~,. g~~~js' (ii '~h~~k~d: .~ti~~h' F~~~ 970) : : : : : : : . . . . . . : . : : : :: ::.:..:.: :
If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing I a.< I .
:~~~~~~~c~:r:~~:~:~:~~~~U~~d 'f~~ 'r~~'~I~: 'd~ ih~' ;~I~~' ~f ~~~ti~~ '263;'" ~pp'ly 't~' ih~ 'c'~rp~r~'ti~~? ': : : : : : : : : : : : : : : : . .~
Was there any change in determining quantities, cost, or valuations between opening and closing. inventory? If 'Yes,"
attach explanation ............ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
:~W([j~'~~~~ Dividends and Special Deductions (see instructions) (a) Dividends
received
Dividends from less-than-20%-owned domestic corporations (other than
debt-financed stock) ..............................................................
2 Dividends from 20%-or-more-owned domestic corporations (other than debt-financed
stock) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends on debt-financed stock of domestic and foreign corporations . . . . . . . . . . . . . . . .
. Dividends on certain preferred stock of less-than-20%-owned public utilities ...........
Dividends on certain preferred stock of 20%-or-more-owned public utilities. . . . . . . . . . . . .
Dividends from less-than-20%-owned foreign corporations and certain FSCs . . . . . . . . . . .
Dividends from 20%-or-more-owned foreign corporations and certain FSCs . . . . . . . . . . . .
Dividends from wholly owned foreign subsidiaries. . . . . . . . . . . . . . . . .. .. . . . . .. . . . . . . . . . .
Total. Add lines 1 through 8. See instructions for limitation ...........................
Dividends from domestic corporations received by a small business investment
company operating under the Small Business Investment Act of 1958 . . . . . . . . . . . . . . . . .
11 Dividends from affiliated group members and certain FSCs . .. . . . . . . .. .. .. . . . .. .. . .. . .
12 Dividends from controlled foreign corporations (attach Form 8895) ...................
13 Dividends from foreign corporations not included on lines 3, 6, 7, 8, 11, or 12 ..........
14 Income from controlled foreign corporations under subpart F (attach Form(s) 5471).....
15 Foreign dividend gross-up..... . . . . . . . .. . . . . .. . ... . .. .. .. . . .. . . .. . ... .... . . . . . . .. . .
16 IC-DISC and former DISC dividends not included on lines 1,2, or 3 ............ .. , .. . .
17 Other dividends
..........., ... ....................................................
18 Deduction for dividends paid on certain preferred stock of public utilities. .. .. . . . . . .. .. .
19 Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4 .. . . . . . . . ~
20 Totals ecialdeductions.Add lines 9 10,11, 12,and18. Enter here and on a e1,lIne29b ........................ ~
i:.);'$f.Q'~l~~.4J,~~:t;t:;f Compensation of Officers (see instructions for page 1, line 12)
Note: Com lete Schedule E ani if total recei ts line 1a Ius lines 4 throu h 10 on a e 1 are $500,000 or more.
(c) Percent of Percent 1 cor 0 ation
(b) Social security number time devoted to
business
.
DAA
ROGELE INC.
Cost of Goods Sold see instructions
23-1597186
1
2
3
4
5
6
7
8
9a
b
c
d
e
.",,,".
3
4
5
6
7
8
9
10
124 Pg 8
Pa e 2
1
2
3
4
5
6
7
8
11 960 262
11 960 262
11 960 262
(b) %
(e) Special deductions
(a) x (b)
70
80
.see
(a) Name 01 officer
DENNIS D MCCLURE
JAMES R MCCLURE IV
CHRISTOPHER MCCLURE
JUDITH A. MCCLURE
186-38-394 100.000"lc 0;'
170-54-822 100.00OoIc 23. 65801c
170-54-273 100.0000;. 23. 658"1c
161-34-449 50.00001c 5.37001c
Olc "Ic
2 Total compensation of officers.. . .. . .. ... . . . . .. . ... .. . .. . . .. ... . . .... . . . . .. ... .. . . .. . . . . . . ..... .. .... . . . . .. .. . . . . ... .
3 Compensation of officers claimed on Schedule A and elsewhere on return. . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Subtract line 3 from line 2. Enter the result here and on a e 1, line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(f) Amount of compensation
olc 97 520
Olc 431 571
Olc 401 507
Olc 153 830
"Ic
1,084,428
1 084 428
Form 1120 (2005)
Form 1120 (2005) ROGELE, INC.
~;;S:cffedule\:J;~~i Tax Com utation see instructions
1 Check if the corporation is a member of a controlled group .............................................. ~
Important: Members of a controlled group, see instructions.
2a If the box on line 1 is checked, enter the corporation's share of the $50,000, $25,000, and $9,925,000 taxable
income brackets (in that order):
(1) 1$ I (2) 1$ (3) $
b Enter the corporation's share of:(1) Additional 5% tax (not more than $11,750) $
(2) Additional 3% tax (not more than $100,000) $
Income tax. Check If a qualified personal service corporation (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . ~
Alternative minimum tax (attach Form 4626) ...................................................................
Add lines 3 and 4 ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign tax credit (attach Form 1118) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6a
Possessions tax credit (attach Form 5735) ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6b
c Credits from: 0 Form 8834 0 Form 8907, line 23 ....................... 6c
d General business credit. Check box(es) and indicate which forms are attached:
o Form 3800 0 Form(s) (specify) ~ .....,..............................,..... 6d
e Credit for prior year minimum tax (attach Form 8827) 6e
Bond credits from: 0 Form 8860 0 Form 8912'::::::::::::::::::::::::: 6f
Total credits. Add lines 6a through 6f ..........,.....................................,........................
Subtract line 7 from line 5 ,.,......,................."...................................,............,......
Personal holding company tax (a attach Schedule PH B(FOrm 1120)) . . . . . . ~. . . . . . . , , . . . . . . . . . . . . . . . . . . . . . . . . , . . . . .
Other taxes. Check if from: Form 4255 Form 8611 X Form 8697 .
Form 8866 Form 8902 Other (attach schedule) ., ............
11 Total tax. Add lines 8 throu h 10. Enter here and on a e 1 line 31 ....... . .. .. ... .. . .. .. .. .. .... ......
~li'S".:"e(lLlfe:1~1,;~f Other Information see instructions
1 Check accounting method: a
b ~ Accrual c 0 Other
(specify) ~, . . . . . . . . . . , . . . . . . . . . , . . . . . . . . . . . . . . . . . . . , . . . . . .
See the instructions and enter the:
Business activity code no. ~ . ~ ~ ? ~ 9 0.. .. . . .. . .. .. . .. . . .. .. .
Business activity ~ . ~q~~~C.~9~. . . . , . . . . . . . . . . . . . . . . .
Productorservice ~ CONSTRUCTION
... ......................................
.
3
4
5
6a
b
f
7
B
9
10
23-1597186
10
11
7
At any time during the tax year, did one foreign person own, directiy
or indirectiy, at least 25% of (a) the total voting power of all
classes of stock of the corporation entitled to vote or the total (b)
value of all classes of stock of the corporation? .. .............
If "Ves," enter: (a) Percentage owned ~ . . . . . . . . . . . . .
and (b) Owner's country ~ .............................
The corporation may have to file Form 5472, Information
Return of a 25% Foreign-Owned U.S. Corporation or a
Foreign Corporation Engaged In a U.S. Trade or Business.
Enter number of Forms 5472 attached ~
2
a
b
c
3
At the end of the tax year, did the corporation own, directiy or Indirectiy,
50% or more of the voting stock of a domestic corporation? (For rules of
attribution, see section 267(c).) .....,................,.,...,.....
If "Ves," attach a schedule showing: (a) name and employer idenllfication
number (EIN), (b) percentage owned, and (c) taxable Income or (ioss) before
NOL and special deductions of such corporation for the tax year ending
with or within your tax year.
Is the corporation a subsidiary In an affiliated group or a
parent-subsidiary controlled group? ...........................,..,
If "Ves,' enter name and EIN of the parent corp. ~ .....................
c
8
Check this box if the corporation Issued publicly offered
debt instruments with original issue discount ... . , . . . . . ., ~ D
If checked, the corporation may have to file Form 8281, Intormation
Return for Publicly Offered Original Issue Dlscountlnstruments.
Enter the amount of tax-exempt Interest received or
accrued during the tax year ~ $ .....................,q..
Enter the number of shareholders at the end of the tax
year (If tOO or fewer) ~ ....?...........................
If the corporation has an NOL for the tax year and is
electing to forego the carryback period, check here. . . . . .. ~ D
If the corporation Is filing a consolidated return, the statement
required by Temporary Regulations section 1.1502-21T(b)(3)
must be attached or the election will not be valid.
Enter the available NOL carryover from prior tax years
(Do not reduce it by any deduction on line
29a.) ~ $ ..................,.........................
Are the corporation's total receipts (line 1 a plus lines 4
through 10 on page 1) for the tax year and its lotal assets
at the end of the tax year less than $250,0007
4
5
At the end of the tax year, did any Individual, partnership,
corporation, estate, or trust own, directiy or indirectly,
50% or more of the corporation's voting stock? (For rules
of attribution, see section 267(c).) .......,..."....,.. ~.~. . .f?
If 'Ves," attach a scheduie showing name and Identifying
number. (Do not include any information already entered
in 4 above.) Enter percentage owned ~ 1: 0. O. : . <?<?C? . . . . . . . . . . .
During this tax year, did the corp. pay dividends (other than stock dividends
and distributions in exchange for stock) in excess of the corporation's
current and accumulated earnings and profits? (See sections 301 and 316.)
If 'Ves,' file Form 5452, Corporate Report of
Nondividend Distributions.
9
10
11
12
13
If "Ves,' the corporation is not required to complete
Schedules L, M-1, and M-2 on page 4. Instead, enter the
If this is a consolidated return, answer here for the parent totai amount of cash distributions and the book vaiue of
corporation and on Form 851, Affiliations Schedule, for property distributions (other than cash) made during the tax
each subsidiary. year.~ $ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . .
Note: If the corporation, at any time during the tax year, had assets or operated a business in a foreign country or U.S. possession, it may be
required to attach Schedule N (Form 1120), Foreign Operations of U.S. Corporations, to this return. See Schedule N for details.
DAA
6
124 Pg 9
PaQe 3
29
6
35
019
708
727
35
o
727
7 871
43 598
Form 1120 (2005)
.
124 Pg 10
INC.
23-1597186
Page 4
(d)
1
2a
b
3
4
5
6
7
8
9
10a
b
11a
b
12
13a
b
14
15
Cash .... ...... ... .....,........ ... .....
Trade notes and accounts receivable
Less allowance for bad debts ......,......
Inventories ... . . . . . . . . . . . . . . . . . . . . . . . . . . .
U.S. government obligations. . . . . . . . . . . . . .
Tax-exempt securities (see instructions)
Other current assets (atl. sch.) . ~~~ . :~:
Loans to shareholders ...................
Mortgage and real estate loans ...........
Other investments (attach sch.) . . . . . . . . . . . . .
Buildings and other depreciable assets ....
Less accumulated depreciation ...........
Depletable assets .......................
Less accumulated depletion ..............
Land (net of any amortization) ............
Intangible assets (amortizable oniy) .......
Less accumulated amortization
...........
Other assets (attach sch.) .... ~~~. .7.
Total assets. . . . .. . . . . . . . . . . . . . .. . . ,
Liabilities and Shareholders' Equity
Accounts payable. . . . . . . . . . . . . . . . . . . .
Mortgages, notes, bonds payable in less than l,year
Other current liabilities ....... ~~. .8.
Loans from shareholders
3 672 311
248 910
16
17
18
19
20
21
22
1 085 571
1 859 508
2 880
1 920
2 127 410
56 359)
714 874
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (attach schedule) ~~., 9.
Capital stock: a Preferred stock ........
b Common stock
23 Additional paid-in capital .................
24 Retained earnings-Appropriated . . . . . . . . . . . . . . .
25 Retained earnings-Unappropriated ........
26 Adjustments to SH equity (att.sch.) ............
27 Less cost of treasury stock ...............
28 Total liabilities and shareholders' e uit
:;.:'S:aDeaufi;:!M~~~ Reconciliation of Income
1 Net income (loss) per books, . . . . . . . . . . . . .
2 Federal income tax per books .............
3 Excess of capital losses over capital gains .
4 Income subject to tax not recorded on books
this year (itemize): .......................
5 Expenses recorded on books this year not
deducted on this return (itemize):
a Depreciation .. $
b Charllable . . . . . . . . . . .. ...........
contributions. .. $
c Travel and
entertainment.. $.. . . . . . . . . .
STMT 10
ro
Balance at beginning of year. . .. . . ..... . .. .
Net income (loss) per books. . . . . . . . . . . . . . .
Other increases (itemize): . . . . . . . . . . . . . . . . .
4 Add lines 1, 2, and 3 . .
2 127 410
2 127 410
Form 1120 (2005)
DAA
Note: See the Instructions to find out If the corporation is a small corporation exempt from the
altemative minimum tax (AMT) under section 55(e).
1 Taxable income or (loss) betore net operating loss deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Adjustments and preferences:
a Depreciation of post-19B6 property................................... .... ..... .............................. ..
b Amortization of certified pollution control facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c Amortization of mining exploration and development costs ......................................................
d Amortization of circulation expenditures (personal holding companies only) .......................................
e Adjusted gain or loss. . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
f Long-term contracts .........................................................................................
9 Merchant marine capital construction funds ....................................................................
h Section 833(b) deduction (Blue Cross, Blue Shield, and similar type organizations only) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I Tax shelter farm activities (personal service corporations only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
j Passive activities (closely held corporations and personal service corporations only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
k Loss limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I Depletion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
m Tax-exempt interest income from specified private activity bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
n Intangible drilling costs. . ..... . . . . .. ... . . . . .. ......... .. ... ... . . . . . .. . ... ..... ...... . . . . . . . . ... ..... . . .. ... . ..
o Other adjustments and preferences.................................. .................... ... .... .~.~., ~~
3 Pre-adjustment alternative minimum taxable income (AMTI). Combine lines 1 through 20 .... . . . . . . . . . . . . . . . . . . . . . .
4 Adjusted current earnings (ACE) adjustment:
a ACE from line 10 of the ACE worksheet in the instructions ........................ 4a 204
b Subtract line 3 from line 4a. If line 3 exceeds line 4a, enter the difference as a
negative amount (see instructions) .............................................. 4b
c Multiply line 4b by 75% (.75). Enter the result as a positive amount. . . . . . . . . . . . . . . . . 4c
d Enter the excess, if any, of the corporation's total increases in AMTI from prior
year ACE adjustments over its total reductions in AMTI from prior year ACE
adjustments (see instructions). Note: You must enter an amount on line 4d (even
if line 4b is positive) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4d
.
Form 4626
Alternative Minimum Tax-Corporations
Department of the Treasury
Internal Revenue Service
Name
~ See separate instructions.
~ Attach to the cor oration's tax return.
ROGELE
INC.
124 Pg 11
OMS No. 1545-0175
2005
117 356
2a
2b
2c
2d
2e
89 387
-2 075
204 668
e ACE adjustment.
. If line 4b is zero or more, enter the amount from line 4c }. ....................
. If line 4b is less than zero, enter the smaller of line 4c or line 4d as a negative amount
5 Combine lines 3 and 4e. If zero or less, stop here; the corporation does not owe any AMT .........................
6 Alternative tax net operating loss deduction (see
instructions) ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Alternative minimum taxable income, Subtract line 6 from line 5. If the corporation held a residual
interest in a REMIC, see instructions .................................................................
8 Exemption phase-out (If line 7 is $310,000 or more, skip lines Ba and 8b and enter -0- on line 8c):
a Subtract $150,000 from line 7 (if completing this line for a member of a controlled
group, see instructions).
If zero or less, enter -0- ....,................................................... 8a 54
b Multiply line 8a by 25% (.25) ........;.......................................... Bb 13
c Exemption. Subtract line 8b from $40,000 (if completing this line for a member of a controlled group,
see instructions). If zero or less, enter -0- ......... . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 Subtract line Be from line 7. If zero or less, enter -0- ............................................................
10 Multiply line 9 by 20% (.20) .. . . . . .. . . . . .. . . ... . .. . . . .. . . .. . . .. . . . . .. . . . . . . . .... . . . . . . . . .. . . . . . . . ..
11 Alternative minimum tax foreign tax credit (AMTFTC) (see instructions) . . . . . .. .. . .. . .... . . . . .. . . . .. . . . .. ..... .. . . .
12 Tentative minimum tax. Subtract line 11 from line 10
.,........... ..............................................
13 Regular tax liability before applying all credits except the foreign tax credit and possessions tax credit. . . . . . . . . . . . . . .
14 Alternative minimum tax. Subtract line 13 from line 12. If zero or less, enter -0-. Enter here and on
Form 1120, Schedule J, line 4 or the a ro riate line of the cor oration's income tax return. . . . . . . . . . .
For Paperwork Reduction Act Notice, see the instructions.
DAA
4e
238
5
204 906
6
204 906
Bc 26 273
9 178 633
10 35 727
11
12 35 727
13 29 019
14 6 708
Form 4626 (2005)
124 Pg 12
Form 4562
Depreciation and Amortization
(Including Information on Listed Property)
OMS No. 1545-0172
(Rev. January 2006)
Department of the Treasury
Internal Revenue Service
Name(s) shown on return
ROGELE INC.
~ See se arate instructions. ~ Attach to our tax return.
2005
~~a~~~ceen~o. 67
!t;Rft~R~~
Identifying number
23-1597186
6
105 000
1 Maximum amount. See the instructions for a higher limit for certain businesses ...................................
2 Total cost of section 179 property placed in service (see Instructions) ............................................
3 Threshold cost of section 179 property before reduction In limitation.. .. ... ... . .. .... . . .... ...... . . . ... . .. ... . .. ..
4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Dollar limitation for tax ear. Subtract line 4 from line 1. If zero or less, enter -0-. If married filin se aratel ,see instr.
e Elected cas I
420,000
7 Listed property. Enter the amount from line 29 ........................................ 7
8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 .. . . . . .. ... .. . . . . . .. . .. . . . ... . .
9 Tentative deduction. Enter the smaller of line 5 or line 8
...... .................................. ................
10 Carryover of disallowed deduction from line 13 of your 2004 Form 4562 ..........................................
11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions)
12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11
13 Car over of disallowed deduction to 2006. Add lines 9 and 10, less line 12 ...... . . . . ~ 13
Note: Do not use Part II or Part III below for listed property. Instead, use Part V.
'R1~i.ilt~mj S ecial De reciation Allowance and Other De reciation Do not include listed
14 Special allowance for certain aircraft, certain property with a long production period, and qualified NYL
or GO Zone property (other than listed property) placed in service during the tax year (see instructions) .............
15 Property subject to section 168(f)(1) election..... ............................ ................ ..................
16 Other de reciation includin ACRS ..........................................................................
;~;:iRa'rtml*' MACRS Depreciation (Do not include listed property.) (See instructions.)
Section A
17 MACRS deductions for assets placed in service in tax years beginning before 2005 ...............................
18 rou an assets laced In service durin the tax ear Into one or more eneral asset accounts, check here ~
14
15
16
3 299
Nonresidential real
property
(a) Classification of property
(e) Convention (f) Method
(g) Depreciation deduction
655 592
5.0
M
200DB
105 119
h
MM
MM
MM
MM
2005 Tax Year Usin ttie Alternative De
S/L
S/L
S/L
S/L
S/L
20a Class life
b 12- ear
c 40- ear
;;Part;ll~; Summa see instructions
21 Listed property. Enter amount from line 28 ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '. . . . . . . . . . . . . . . . . . . . .
22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21.
Enter here and on the appropriate lines of your return. Partnerships and S corporations-see instr. . .
23 For assets shown above and placed In service during the current year,
enter the ortion of the basis attributable to section 263A costs
For Paperwork Reduction Act Notice, see separate instructions.
DAA
S/L
S/L
S/L
12 rs.
40 rs.
MM
21
20 597
22
23
ROGELE, INC. 23-1597186
Form 4562 (2005) (Rev. 1-2006) Pa~e 2
:~U!IJ~~~ Listed Property (Include ,automobiles, c~rtain other vehicles, cellular telephones, certain computers, and
property used for entertainment, recreation, or amusement.)
Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only
24a, 24b, columns (a) throu~h (c) of Section A, all of Section 8, and Section C if applicable.
reciation and Other Information Caution: See the instructions for limits for assen er automobiles.
ort the business/investment use claimed? Yes No 24b If "Yes," is the evidence written?
124 Pg 13
(c) (d) ( )
Business! e
investment Cost or other Basis for depreciation
use basis (business/investment
first) ercenta e use only)
Special allowance for certain aircraft, certain property with a long production period, and quallried NYL or GO Zone
laced in service durin the tax ear and used more than 50% in a ualified business use see instructions
(f)
Recovery
period
(9)
Method!
Convention
(h)
Depreciation
deduction
uallfied business use:
25
25
0/,
404 959
404 959
20 597
27
0/,
used 50% or less in a ualified business use:
28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 ....................
29 Add amounts in column i, line 26. Enter here and on line 7 a e 1 ..,.............................
Section B-Information on Use of Vehicles
Complete this section for vehicles used by a sole proprietor, partner, or other "more than 5% owner," or related person.
If you provided vehicles to your employees, first answer the questions in Section C to see if you meet an exception to completing this section for those vehicles.
28
20
%
S/L-
%
S/L-
30 Total business/investment miles driven (a) (b) (c) (d) (e) (f)
during the year (do not include commuting Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicle 5 Vehicle 6
miles)..................... ............. ,.......
31 Total commuting miles driven during the year ......
32 Total other personal (noncommuting) miles driven. .
33 Total miles driven during the year. Add
lines 30 through 32 ..............................
34 Was the vehicle available for personal Yes No Yes No Yes No Yes No Yes No Yes No
use during off-duty hours? . . . . . . . . . . . . . . . . . . . . . . . .
35 Was the vehicle used primarily by a
more than 5% owner or related person? ...........
36 Is another vehicle available foroersonal use? ......
Section C-Questions for Employers Who Provide Vehicles for Use by Their Employees
Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are
not more than 5% owners or related ersons see instructions.
Yes No
37 Do you maintain a written policy statement that prohibits all personal use of vehicles, includlAg commuting, by your employees?
38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees?
See the instructions for vehicles used by corporate officers, directors, or 1 % or more owners . . . . . . . . . . . . . . . . . . . . . . . . . . .
39 Do you treat all use of vehicles by employees as personal use? . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40 Do you provide more than five vehicles to your employees, obtain information from your employees about
the use of the vehicles, and retain the Information received? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41 Do you meet the requirements concerning qualified automobile demonstration use? (See instructions.) ....................
Note: If our answer to 37, 38,39,40, or 41 is 'Ves " do not com lete Section B for the covered vehicles.
i1t~$"rif!\tIIH Amortization
42 Amortization of costs that be
(b)
Date amortization
begins
(e)
Amortizable
amount
(d)
Code
section
(e)
Amortization
period or
ercenta e
(f)
Amortization for
this year
(a)
Description of costs
43
44
Amortization of costs that began before your 2005 tax year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total. Add amounts in column f. See the .instructions for where to re ort . _ .
43 0
44
Form 4562 (2005) (Rev. 1-2006)
DAA
ROGELE INC. 23-1597186
1 Enter the gross proceeds from sales or exchanges reported to you for 2005 on Form(s) 1099-B or 1099-S (or substitute
statement) that ou are includin on line 2, 10, or 20 (see instructions) .......................................,... 1
flP&'ia~j Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other
Than Casualt or Theft.Most Propert Held More Than 1 Year see instructions
(e) Depreciation (f) Cost or other
allowed or basis, plus
allowable since improvements and
ac uisltion ex ense of sale
Form 4797
Sales of Business Property
(Also Involuntary Conversions and Recapture Amounts
Under Sections 179 and 280F(b)(2))
~ Attach to our tax return. ~ See se arate instructions.
Department of the Treasury
Internal Revenue Service (99)
Name(s) shown on return
(a) Description (b) Date acquired
of property (mo., day, yr.)
(c) Date sold
(mo., day, yr.)
(d) Gross
sales price
E-22
4 204
1 300
2
3 Gain, If any, from Form 4684, line 42 ..........................................................................
4 Section 1231 gain from installment sales from Form 6252, line 26 or 37 ..........................................
5 Section 1231 gain or (loss) from like-kind exchanges from Form 8824 .. . . .. . . . . . .. ........ ... .. . . . . .. . ... .. . '" . .
6 Gain, If any, from line 32, from other than casualty or theft. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows: . . . . . . . . . . . . . . . . . . . . .
Partnerships (except electing large partnerships) and S corporations. Report the gain or (loss) following the
instructions for Form 1065, Schedule K, line 10, or Form 1120S, Schedule K, line 9. Skip lines 8, 9, 11, and 12 below.
Individuals, partners, S corporation shareholders, and all others. If line 7 is zero or a loss. enter the amount
from line 7 on line 11 below and skip lines 8 and 9. If line 7 is a gain and you did not have any prior year section
1231 losses, or they were recaptured in an earlier year, enter the gain from line 7 as a iong-term capital gain
on the Schedule D flied with'your retum and skip lines 8, 9, 11, and 12 below.
8 Nonrecaptured net section 1231 losses from prior years (see instructions) ........................................ 8
9 Subtract line 8 from line 7. If zero or less, enter -0-. If line 9 is zero, enter the gain from line 7 on line 12 below.
If line 9 is more than zero, enter the amount from line 8 on line 12 below and enter the gain from line 9 as a
Ion -term ca ital ain on the Schedule D flied with our return see instructions .................................. 9
,';a~l}tttt~.; Ordinary Gains and Losses (see instructions)
10 Ordina
11 Loss, if any, from line 7 ..... ......... . ,............... ..... .............................. ......
12 Gain, if any, from line 7 oramount from line 8, if applicable. . .. .. .. . . . . . . . . . . . .. . .. . .. .. .. .. . . . .. .. . . .. .. . . . . . .. .
13 Gain, If any, from line 31 .....................................................................................
14 Net gain or (loss) from Form 4684, lines 34 and 41a .................. ...... .............................. ......
15 Ordinary gain from installment sales from Form 6252, line 25 or 36 ..............................................
16 Ordinary gain or (loss) from like-kind exchanges from Form 8824 ................................................
17 Combine lines 10 through 16 .................................................................................
18 For all except Individual returns, enter the amount from line 17 on the appropriate line of your return and skip
lines a and b below. For individual returns, complete lines a and b below:
a If the loss on line 11 includes a loss from Form 4684, line 38, column (b)(Ii), enter that part of the loss here. Enter
the part of the loss from income-producing property on Schedule A (Form 1040), line 27, and the part of the loss
from property used as an employee on Scheduie A (Form 1040), line 22. Identify as from 'Form 4797, line 18a.'
See instructions ...,.........................................................................................
b Redetermine the gain or (loss) on line 17 exciuding the ioss, if any, on line 18a. Enter here and on Form 1040,
line 14 ... ,. .. .. .. .. ,......... ..........,......... , . .. . ...... ....... ., , . ...... .......
For Paperwork Reduction Act Notice, see separate instructions.
DAA
124Pg 14
OMS No. 1545-0184
2005
~~a~~~c~n~o. 27
Identifying number
(g) Gain or (Joss)
Subtract (t) trom the
sum of (d) and (e)
7 007
-1 503
11 -1 503)
12
13 10 200
14
15
16
17
18a
18b
Form 4797 (2005)
PAGE 1 OF 2
Form 4797 (2005) ROGELE, INC. 23 -1597186
. !;ijp,i~{tn~ Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254, and 1255
124 Pg 15
PaQe 2
(see instructions)
(b) Date acquired (c) Date sold
19 (a) Description of section 1245, 1250, 1252, 1254, or 1255 property: (mo., day, yr.) (mo., day, yr.)
A REPAIRS #E-108 4/30/92 9/30/05
B E-22 MAJOR REPAIRS-WORLEY EQUIPMENT 9/15/94 9/30/05
c E-22 MAJOR REPAIRS-WORLEY EQUIPMENT 1/17/95 9/30/05
D E-20 MAJOR REPAIRS 2/28/95 9/30/05
These columns relate to the orooerties on lines 19A - 19D. ~ Prooertv A Prooertv B Prooertv C Prooertv D
20 Gross sales price (Note: See line 1 before completing.) ...... 20 1,300 1,250 1 250 1, 300
21 Cost or other basis plus expense of sale. . . . . . . . . . . . . . . . . . . . 21 5 218 6,539 6 408 8,382
22 Depreciation (or depletion) allowed or allowable ............. 22 5 218 6 539 6 408 8.382
23 Adjusted basis. Subtract line 22 from line 21 ................ 23 0 0 0 0
24 Total oain. Subtract line 23 from line 20 . . . . . . . . . . . . . . . . . . . . . 24 1 300 1 250 1 250 1, 300
25 Ihection 1245 property:
a Depreciation allowed or allowable from line 22 . . . . . . . . . . . . . . . 25a 5,218 6,539 6 408 8,382
b Enter the smaller of line 24 or 25a ......................... 25b 1,300 1,250 1,250 1,300
26 If section 1250 property: If straight line depreciation was used, enter
-0- on line 26g. except for a corporation subject to section 291.
a Additional depreciation after 1975 (see instructions) ......... 26a
b Applicable percentage multiplied by the smaller of line 24 or
line 26a (see instructions) ................................. 26b
c Subtract line 26a from line 24. If residential rental property
or line 24 is not more than line 26a, skip lines 26d and 26e 26c
...
d Additional depreciation after 1969 and before 1976 .......... 26d
e Enter the smaller of line 26c or 26d 26e
........................
f Section 291 amount (corporations only) . . . . . . . . . . . . . . . . . . . .". 26f
a Add lines 26b, 26e, and 26f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 260
27 If section 1252 property: Skip this section if you did not
dispose of farmland or if this form is being completed for a
partnership (other than an eiecting large partnership).
a Soil, water, and land clearing expenses. . . . . . . . . . . . . . . . . . . . . 27a
b Line 27a multiplied by applicable percentage (see instructions) 27b
c Enter the smaller of line 24 or 27b ......................... 27c
28 If section 1254 property:
a Intangible drilling and development costs, expenditures for
development of mines and other natural deposits, and
mining exploration costs (see instructions) .................. 28a
b Enter the smaller of line 24 or 28a ......................... 28b
29 If section 1255 property:
a Applicable percentage of payments excluded from income
under section 126 (see instructions) ........................ 29a
b Enter the smaller of line 24 or 29a (see instructions) . . . . . . . . . 29b
Summa
oin to line 30.
30 Total gains for all properties. Add property columns A through D, line 24 ~~. .l??\-~~~.-.. . . . . . . . . . . ~ q /.? 9.9. 30
5 100
31 Add property columns A through D, lines 25b, 26g, 27c, 28b, and 29b.
Enter here and on line 13 .. . .. .. .. .. .. . . . .. .. .. .. .. .. .. .. .. . .. .. ... ~~. ~~~E:~............ ~ q f.? 9. 9. 31 5 100
32 Subtract line 31 from line 30. Enter the portion from casualty or theft on Form 4684, line 36. Enter the portion from
other than casualt or theft on Form 4797, line 6 . . . . . . . . . . . . . . . . . . . . . . ALL. . PAGES. . . . . . . . . . . . . . . . . . . _ . . . . . 32 0
l!~1t;]tl; Recapture Amounts Under Sections 179 and 280F(b)(2) When Business Use Drops to 50% or Less
see instructions
(a) Section
179
(b) Section
280F(b)(2)
33 Section 179 expense deduction or depreciation allowable in prior years. . ... . . . . . ... . _. ., 33
34 Recomputed depreciation (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
35 Reca ture amount. Subtract line 34 from line 33. See the instructions for where to re ort. 35
DAA
Form 4797 (2005)
PAGE 2 OF 2
Form 4797 (2005) ROGELE, INC. 23-1597186
H!~~iri~,U~; Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254, and 1255
124 Pg 16
Page 2
(see instructions)
19 (a) Description of section 1245,1250,1252, 1254, or 125.5 property: (b) Date acquired (c) Date sold
(mo., day, yr.) (mo., day, yr.)
A E-l08 MAJOR REPAIRS-WORLEY EQUIP. 4/14/95 9/30/05
B E-20 MAJOR REPAIR 5/28/99 9/30/05
c E-20 MAJOR REPAIR . 8/09/99 9/30/05
D E-l08 MAJOR REPAIR 3/09/98 9/30/05
These columns relate to the orooerties on lines 19A -190. ~ Prooertv A Prooertv B ProDertv C Property 0
20 Gross sales price (Note: See line 1 before completing.) ...... 20 1. 250 1. 300 1 300 1,250
21 Cost or other basis plus expense of sale . . . . . . . . . . . . . . . . . . . . 21 5 005 5.345 6 394 5,893
22 Depreciation (or depletion) allowed or allowable ............. 22 5 005 5.345 6 394 5,893
23 Adjusted basis. Subtract line 22 from line 21 23 0 0 0 0
. . . . . . . . . . . . . . . .
24 Total oain. Subtract line 23 from line 20 . . . . . . . . . . . . . . . . . . . . . 24 1 250 1 300 1 300 1.250
25 Ifsection 1245 property:
a Depreciation allowed or allowable from line 22 . . . . . . . . . . . . . . . 25a 5 005 5 345 6 394 5.893
b Enter the smaller of line 24 or 25a ......................... 25b 1.250 1 300 1. 300 1. 250
26 If section 1250 property: If straight line depreciation was used, enter
-0. on line 26g, except for a corporation subject to section 291.
a Additional depreciation after 1975 (see instructions) ...... 26a
...
b Applicable percentage multiplied by the smaller of line 24 or
line 26a (see instructions) ............................... 26b
..
c Subtract line 26a from line 24. If residential rental property
or line 24 is not more than line 26a, skip lines 26d and 26e 26c
...
d Additional depreciation after 1969 and before 1976 . . . . . . . . . . 26d
e Enter the smaller of line 26c or 26d ... ..................... 26e
f Section 291 amount (corporations only) . . . . . . . . . . . . . . . . . . . . . 26f
a Add lines 26b, 26e, and 26f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26a .
27 If section 1252 property: Skip this section if you did not
dispose of farmland or if this form Is being completed for a
partnership (other than an electing large partnership).
a Soil, water, and land clearing expenses. . . . . . . . . . . . . . . . . . . . . 27a
b Line 27a multiplied by applicable percentage (see instructions) 27b
c Enter the smaller of line 24 or 27b ......................... 27c
28 If section 1254 property:
a Intangible drilling and development costs, expenditures for
development of mines and other natural deposits, and
mining exploration costs (see instructions) .................. 28a
b Enter the smaller of line 24 or 28a ..... . ........ .. ... ...... 28b
29 If section 1255 property:
a Applicable percentage of payments excluded from income
under section 126 (see instructions) ........ . ... . . .. . ... .. .. 29a
b Enter the smaller of line 24 or 29a (see instructions) . . . . . . . . . 29b
Summa
oin to line 30.
30
Total gains for all properties. Add property columns A through D, line 24.. ... .. ... . . . .
30
5 100
31 Add property columns A through D, lines 25b, 26g, 27c, 28b, and 29b.
Enter here and on line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 5 100
32 Subtract line 31 from line 30. Enter the portion from casualty or theft on Form 4684, line 36. Enter the portion from
other than casual or theft on Form 4797 line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . 32 0
EifltilS6! Recapture Amounts Under Sections 179 and 280F(b)(2) When Business Use Drops to 50% or Less
see instructions
(a) Section
179
(b) Section
280F(b)(2)
33 Section 179 expense deduction or depreciation allowable in prior years. .. .. . .. ... .. . .. . . 33
34 Recomputed depreciation (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
35 Reca ture amount. Subtract line 34 from line 33. See the instructions for where to re ort. 35
DAA
Form 4797 (2005)
Form
8827
Credit for Prior Year Minimum Tax-Corporations
Department of the Treasury
Internal Revenue Service
~ Attach to the corporation's tax return.
124 Pg 19
OMS No, 1545-1257
2005
Name I Employer identification number
ROGELE, INC. 23-1597186
1 Altemative minimum tax (AMT) for 2004. Enter the amount from line 14 of the 2004 Form 4626 .."""...."...". 1
2 Minimum tax credit carryforward from 2004. Enter the amount from line 9 of the 2004 Form 8827 .,.. , , . . . . , . , , . . , . . 2 6 , 251
3 Enter the total of any 2004 unallowed nonconventional source fuel credit and 2004 unallowed
qualified electric vehicle credit (see instructions) . . , . . . . . . . . . . , , . . . , . . . . . , " . . . . . . . , . . . . . . . . ' . . . . . , ' . , . . . . . . . . . . . .
4 Add lines 1, 2, and 3 .. ' . . . . . . ' , , , . . . . . , . . , . . . . . . . . . . . , , , , . . . , . . . . ' , , ' , . , ' . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . ' . . . .
5 Enter the corporation's 2005 regular income tax liability minus allowable tax credits (see
instructions) . . . . , . . . . . . . . . . . . . . , . . . , . . . . . . . . , , . . . . . . . . , . . . . . , . , . . . , , . . . . . . . . . . . . . . , . . . . . . ' . , . . . ' . , . . . . . . , . . . .
6 Is the corporation a 'small corporation' exempt from the AMT for 2005 (see instructions)?
. Yes. Enter 25% of the excess of line 5 over $25,000. If line 5 is $25,000 or less, enter -D-
. No. Complete Form 4626 for 2005 and enter the tentative minimum tax from line 12 .,.....,'..,..........,.....
7 Subtract line 6 from line 5. If zero or less, enter -0- ...................,..','.............,.........,.....,......
8 Minimum tax credit. Enter the smaller of line 4 or line 7 here and on Form 1120, Schedule J,
line 6e or the appropriate line of the corporation's income tax return. If the corporation had a
post-1986 ownership change or has pre-acquisition excess credits, see instructions .......,.............,.........
9 Minimum tax credit carryforward to 2006. Subtract line B from line 4. Keep a record of this
amount to carrY forward and use in future years .."........",...,..,.,'.",..',..,."..............,........,.
DAA
3
4 6,251
5 29 019
6 35,727
7 0
8 0
9 6,251
Form 8827 (2005)
Form 8903
Department of the Treasury
Internal Revenue Service
Name(s) as shown on return
ROGELE
INC.
Domestic production gross receipts
Domestic Production Activities Deduction
~ Attach to your tax return.~ See separate instructions.
2
11 960
2 Allocable cost of goods sold ....................................................
3
4 029
3 Directly allocable deductions, expenses, or losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Indirectly allocable deductions, expenses, or losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
6 Subtract line 5 from line 1
5 Add lines 2 through 4 ................................................................................
7 Qualified If au are a.
production a Shareholder
activities
income b Partner
from pass.
through
entities: c Beneficiary
Schedule K-1 (Form 1120S), box 12, code Q . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule K-1 (Form 1065), box 13, code U ................. .....................
Schedule K-1 (Form 1065-B), box 9, code S2 ....................................
Schedule K-1 (Form 1041), box 14, code C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Qualified production activities income. Add lines 6 and 7. If zero or less, enter -0- here,
skip lines 9 through 15, and enter -0- on line 16 ................... _... ............. . ....
9 Income limitation (see instructions):
. Individuals, estates, and trusts. Enter your adjusted gross income figured without the }
domestic production activities deduction .......................... .-: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. All others. Enter your taxable income figured without the domestic production
activities deduction (tax-exempt organizations, see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 Enter the smaller of line 8 or line 9. If zero or less, enter -0- here, skip lines 11 through 15,
and enter -0- on line 16
11 Enter 3% of line 10
12 Form W-2 wages (see instructions) ... . ......... . .. . . .. . . ... . . .... . . ....... ....... .. .......... . .... .. ..... .. . . .
13 Form W-2 If au are a-
wages a Shareholder
from pass-
through b Partner
entities:
c Beneficiary
14 Add lines 12 and 13
Then enter the total Form W-2 wa es from-
Schedule K.1 (Form 1120S), box 12, code R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule K-1 (Form 1065). box 13, code V ......................................
Schedule K-1 (Form 1065-B), box 9, code S3 ....................................
Schedule K-1 (Form 1041), box 14, code D ............ ..... ........... .... .. ....
15 Form W-2 wage limitation. Enter 50% of line 14
124 Pg 20
OMB No. 1545-1984
2005
~~a~~~c~n~o. 143
Identifying number
}
10
11
}
16 110 711
15,989,725
120 986
120 986
120,986
120,986
3,630
1 317 205
1,317,205
16 Enter the smaller of line 11 or line 15 3 630
658,603
17 Domestic production activities deduction from cooperatives. Enter deduction from Form
1099-PATR, box 6
18 Expanded aHiliated group allocation (see instructions) ..........................................................
19 Domestic production activities deduction. Combine lines 16 through 18 and enter the result
here and on Form 1040, line 35; Form 1120, line 25; Form 1120-A, line 21; or the applicable
line of your retum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For Paperwork Reduction Act Notice, see separate instructions.
DAA
14
15
19
3,630
Form 8903 (2005)
124Pg21
Form 1120
NOL and Contribution Carryover Worksheet - Regular Tax
2005
8/01/05
, endin
7/31/06
Employer Identification Number
Name
ROGELE INC.
23-1597186
Preceding
Taxable Year
Car overs
Current Year
Income Offset By
NOL Carryback!
Carryover
NOL Utilized
Next Year
Prior Year
-936 487 936 487
-7,342
-7 342 7 342
12th -3,250
7/31/9 -3 250 3 250
11th -12,675
7/31/9 -12 675 12 675
125 907 -38 287
9 080
41 567
7th -1,391
7/31/9 -369 0-90 369 090
6th
7/31/0 13 912 -13 912
5th -53,811
7/31/0 -473 582 473 582
4th
7/31/0 662 774 -662 774
3rd
7/31/0 122 493 -122 493
95 732 -43 493
104 533
NOL Carryover Available To Current Year
0
Current Year 117 356
NOL Carryover Available To Next Year
0
Charitable Contributions Prior Year Current Year Next Year
Preceding Excess Utilized Or Reclassed to NOL Carry overs
Tax Year Contributions Reclassed to NOL Carryover Rea.Sec. 1.170A.1Hc\(2 Utilized ~er
bh 7/31/0 2 643 2 643
L..h 7/31/0 5 411 5 411
f,.~ 7/31/0 7 432 7 432
bn~ 7/31/0 1 261 1 261
7/31/0
Charitable Contribution Carryover To Current Year 0 ',i,,"co,u ; '<,,';';,
;'.,
Current Year 0 0
Charitable Contribution Carryover Available To Next Year 0
Form 1120
Name
ROGELE INC.
Preceding
Taxable Year
14th
7/31/9
13th
7/31
12th
7/31
124 Pg 22
NOL and Contribution Carryover Worksheet - AMT
2005
8/01/05
7/31/06
Employer Identification Number
, endin
23-1597186
Prior Year
Current Year
Income Offset By
NOL Carryback!
Carryover
NOL Utilized
Next Year
Car overs
-873 430
873 430
-41 012
-82,928
-93 012
41 012
93 012
112 542 -106 124
32 275 -29 341
109 162 -99 238
-4,996
-296 189 296 189
6th
7/31/0 54 959 -54 959
5th
7/31/0 -36 251 36 251
4th
7/31/0 633 705 -527 132
82 267
18 519
102 295
NOL Carryover Available To Current Year
0
Current Year 184 415
NOL Carryover Available To Next Year
0
Charitable Contributions Prior Year Current Year Next Year
Preceding Excess Utilized Or Reclassed to NOL Carry overs
Tax Year Contributions Reclassed to NOL Carryover Rea.Sec.1.170A-1Hc)(2 Utilized Carryover
"" 7/31/0 2,643 2 643
"h 7/31/0
.rl 7/31/0
7/31/0 4,779 2 704 2 075 2.075
7/31/0
Charitable Contribution Carrvover To Current Year 2 075 ,.,............
Current Year 0 .... ,."..:. 2.075 0
Charitable Contribution Carrvover Available To Next Year 0
124 Pg 23
Form 1120
Carryover Worksheet - Capital G/L and Section 1231
Name
ROGELE, INC.
a/01/05
2005
, end!n
7/31/06
Employer Identification Number
23-1597186
Net Ca ital Loss
Prior Year
Current Year
Next Year
Preceding
Tax Year
Net Capital
Gain/(Loss)
Loss Utilized or CIB
(Gains Offset)
Capital Loss
Carryover
Gain Offset
By Carryback!
Carryovers
Utilized
Capital Loss
Carryover
th 7/31/01
th 7/31/02
rd 7 31/03
6 090
nd 7/31/04
30 451
1st 7/31/05
Current Year
o
over Available To Next Year
o
Section 1231 Losses Prior Year Current Year Next Year
Preceding 1231 Prior Losses
Tax Year Loss Recaotured Unrecaotured Recaotured Un recaptured
th 7/31/0 ""'"'.;..':3,,:,
th 7/31/0
rd 7/31/0
nd 7/31/0 1. 908 1,908 1 908
1st 7/31/0
1231 Losses Available for Recaoture in Current Year 1,908
Current Year 1,503 1,503
1231 Losses Available for Recaoture in Next Year 3,411
124 ROGELE, INC.
23-1597186
FYE: 7/31/2006
Federal Statements
Page 1
Statement 1 - Form 1120, Pa~e 1. Line 10 - Other Income
Description
MISCELLANEOUS
TOTAL
$
$
Amount
8,370
8,370
Statement 2 - Form 1120. Pa~e 1. Line 19 - Charitable Contributions
Description
CURRENT YEAR CONTRIBUTIONS
CARRYOVER FROM PRIOR YEARS
TOTAL CONTRIBUTIONS AVAILABLE
LESS CONTRIBUTIONS DISALLOWED
TOTAL DEDUCTION ALLOWED
$
Amount
5,725
o
5,725
o
5,725
..
$
Statement 3 - Form 1120, Pa~e 1. Line 26 - Other Deductions
Description
OFFICE EXPENSE
YARD AND BLDG - MAINT & TOOL
DUES AND SUBSCRIPTIONS
INSURANCE, GENERAL
TELEPHONE
UTILITIES
PROFESSIONAL FEES
DIRECTORS FEES
TOTAL
$
Amount
46,056
100,747
8,899
446,243
11,958
36,987
24,405
6,000
681,295
$
Statement 4 - Form 1120. Pa~e 2, Schedule A, Line 5 - Other Costs
.
Description
MAT'L, LABOR, SUBS & RENTAL
EQUIPMENT OPERATING COSTS
TOTAL
Amount
$ 10,306,485
1,653,777
$ 11,960,262
Statement 5 - Form 1120, P~ 3. Sch K. Question 5 - Did Entitv Own 50% or More of Corp
Stock?
EIN/SSN
161-34-4493
TOTAL
Name of Entity
JUDITH A. MCCLURE
Percent
Owned
100.000
100.000
1-5
124 ROGELE, INC.
23-1597186
FYE: 7/31/2006
Federal Statements
Page 2
Statement 6 - Form 1120, Pa~e 4, Schedule L, Line 6 - Other Current Assets
Beginning End
Description of Year of Year
BID DEPOSITS - PLAN DEPOSIT $ 2,425 $ 2,425
PREPAID CORPORATE TAXES 27,832 36,960
COSTS IN EXCESS OF BILLING 26,309 209,525
TOTAL $ 56,566 $ 248,910
Statement 7 - Form 1120. Pa~e 4, Schedule L. Line 14 - Other Assets
Description
CASH SURRENDER VALUE:L/I
TOTAL
Beginning
of Year
$ 15,940
$ 15,940
$
$
End
of Year
15,940
15/940
Statement 8 - Form 1120, Pa~e 4, Schedule L, Line 18 - Other Current Liabilities
Description
PAYROLL AND SALES TAX
EMPLOYEE CHRISTMAS FUND
CORPORATE TAXES
ACCRUED EXPENSES
TOTAL
Beginning
of Year
$ 9,716
48,605
61,341
$
End
of Year
2,127
47,935
64,794
3,514
118,370
$ 119,662
$
Statement 9 - Form 1120, Pa~e 4, Schedule L, Line 21 - Other Liabilities
Description
BILLINGS ON UNCOMPLETED JOBS
TOTAL
Beginning
of Year
$ 1,542,456
$ 1,542,456
End
of Year
1,859,508
1,859,508
$
$
Statement 10 - Form 1120, Pa~e 4, Schedule M-1, Line 5 - Expenses on Books Not on Return
Description
OFFICER LIFE INS PREMIUMS
TOTAL
$
$
Amount
5,005
5,005
Statement 11 - Form 1120, Pa~e 4, Schedule M-1, Line 8 - Deductions on Return Not on Books
Description
DOMESTIC PRODUCTION DED
TOTAL
$
$
Amount
3,630
3,630
6-11
124 ROGELE, INC.
23-1597186
FYE: 7/31/2006
Federal Statements
Page 3
Statement 12 - Form 4626. Line 20. Other Adiustments
Description
CHARITABLE CONTRIBUTIONS
TOTAL
Amount
$ -2,075
$ -2,075
12
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124 Pg 17
Form 8697
Interest Computation Under the Look-Back
Method for Completed Long-Term Contracts
OMS No. 1545-1031
Attachment
Se uence No. 97
For the filin
8/01/05 ,and endin
A
Name
ROGELE
INC.
F/II in Your
Address Only If
You Are Filing Thi
Form Separately
and Not With You
Tax Return
City or town, state, and ZIP code
Number, street, and apt., room, or suite no. If a P.O. box, see page 3 of the instructions.
B
Check applicable box to show type ot taxpayer:
X Corporation 0 S corporation
Individual 0 Partnership
Estate or trust
C If you were an owner of an interest in a pass-through entfty (such as a partnership or an S corporation) that holds one or more long-term contracts to which this
Interest computation relates, enter the name and employer Identification number of the entity. Attach a schedule If there is more than one such entity.
Name of entity I Employer identification number
7 Interest due on increase, if any, shown on line 6 (see
page 3 of the instructions) .....................
8 Interest to be refunded on decrease, if any, shown on
line 6 (see page 3 of the instructions) ....,.......
9 Net amount of interest to be refunded to you. If line 8, column (d), exceeds line 7, column (d), enter the excess. File
Form 8697 separately; do not attach It to your tax return (see page 3 of the instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 Net amount of interest you owe. If line 7, column (d), exceeds line 8, column (d), enter the excess. Attach
Form 8697 to our tax return. See a e 4 of the Instructions for where to include this amount on our return
DAA For Privacy Act and Paperwork Reduction Act Notice, see page 5 of the instructions.
!tl$~-1~1
BBS\fdtUt..."
Regular Method
Taxable inc. or loss for the prior years shown on tax
return (or as previously adjusted) before net operating
loss or capitat loss carrybacks (other than carrybacks
that must be taken into account to properly compute
interest under section 460) (see page 3 of the instr.).
If you were required to file Form 8697 for an earlier
year, enter adjusted taxable income for the prior
years from line 3, Form 8697, for the most recent
filing year that affects the prior years .............
2 Adjustment to income to reflect the difference
between: (a) the amount of income required to be
allocated for post-February 1986 contracts completed
or adjusted during the tax year based on the actual
contract price & costs, and (b) the amount of income
reported for such contracts based on estimated
contract price and costs. See page 3 of the Instr. and
attach a schedule listing each separate contract,
unless you were an owner of an interest in a pass-
through entfty reporting this amount from Schedule
K-1 or a similar statement
3 Adjusted taxable income for look-back purposes.
Combine lines 1 and 2
4 Income tax liability on line 3 amt. using tax rates in
effect for the prior years (see page 3 of the instr.)
5 Income tax liability shown on return (or as prevlousiy
adjusted) for the prior years (see pg. 3 of the instr.).
If you were required to file Form 8697 for an earlier
year, enter the amount required to be reported on line
4, Form 8697, for the most recent filing year fhat
af/ects the prior years . . . . . . . . , , . , . . . . . . . , , . . . .
6 Increase or decrease in tax tor the prior years on
which interest is due (or is to be refunded). Subtract
fine 5 from line 4.
Date of each prior year to which interest
com utation relates:
(a)
Year ended
7/31/01
(b)
Year ended
7/31/02
(c)
Year ended
7/31/03
-918 338
-253 403
86
-9 330
-7 619
9
-927 668
-261 022
96
13 315
21
13 315
17 724
3 376
514
7 871
7,871
Form 8697 (Rev. 11-2002)
Form 8697
Interest Computation Under the Look-Back
Method for Completed Long-Term Contracts
124 Pg 18
OMS No. 1545-1031
Attachment
Se uence No. 97
For the jilin
Name
ROGELE
8/01/05 ,and endin
A
INC.
Fill in Your
Address Only If
You Are Filing Thl
Form Separately
and Not With You
Tax Return
City or town, state, and ZIP code
Number, street, and apI., room, or suite no. II a P.O. box, see page 3 of the instructions.
B
Check applicable box to show type of taxpayer:
X Corporation B S corporation
Individual Partnership
Estate or trust
C If you were an owner of an Interest In a pass-through entity (such as a partnership or an S corporation) that holds one or more iong-term contracts to which this
interest computation relates, enter the name and employer identification number of the entity. Attach a schedule If there is more than one such entity.
Name of entity I Employer identification number
fiJi!!m(!'!l!!.R!~'j;~!lit~
."" ,t)fJi I ' ~ <g:tr::1l-
. m-.. ,. ~'"
Regular Method
Taxable inc. or loss for the prior years shown on tax
return (or as previously adjusted) before net operating
loss or capital loss carrybacks (other than carrybacks
that must be taken into account to properly compute
interest under section 460) (see page 3 of the Instr.).
If you were required to file Form 8697 for an earlier
year, enter adjusted taxable income for the prior
years from line 3, Form 8697, for the most recent
filing year that affects the prior years .............
2 Adjustment to income to reflect the difference
between: (a) the amount of income required to be
allocated for post-February 1986 contracts completed
or adjusted during the tax year based on the actual
contract price & costs, and (b) the amount of income
reported for such contracts based on estimated
contract price and costs. See page 3 of the instr. and
attach a schedule listing each separate contract,
unless you were an owner of an interest in a pass-
through entity reporting this amount from Schedule
K-l or a similar statement
3 Adjusted taxable income for look-back purposes.
Combine lines 1 and 2
4 Income tax liability on line 3 amI. using tax rates In
effect for the prior years (see page 3 or the instr.)
5 Income tax Iiabliity shown on return (or as previously
adjusted) for the prior years (see pg. 3 of the instr.).
II you were required to file Form 8697 for an earlier
year, enter the amount required to be reported on line
4, Form 8697. for the most recent filing year that
affects the prior years . . . . . . . . . . . . . . . . . . . . . . . . .
6 Increase or decrease in tax for the prior years on
which interest is due (or is to be refunded). Subtract
line 5 from line 4.
Date of each prior year to which interest
com utation relates:
(a)
Year ended
7/31/04
(b)
Year ended
7/31/05
Ie)
Year ended
990 267
104 533
10 980
379 737
1 001 247
484 270
340 424
166 183
336 691
25 549
3 733
140 634
7 Interest due on increase, II any, shown on line 6 (see
page 3 of the instructions) ..................... 430 6 927
8 Interest to be refunded on decrease, if any, shown on
line 6 (see page 3 of the instructions) ............
9 Net amount at interest to be refunded to you. If line 8, column (d), exceeds' line 7, column [(1J; enter the excess. Flie
Form 8697 separately; do not attach It to your tax return (see page 3 of the instructions) . . . . . . . . . . . . . . . . . . . . . . .
10 Net amount of interest you owe. If line 7, column (d), exceeds line 8, column (d), enter the excess, Attach
Form 8697 to our tax return. See a e 4 of the Instructions for where to Include this amount on our return .
DAA For Privacy Act and Paperwork Reduction Act Notice, see page 5 of the instructions.
Form 8697 (Rev. 11-2002)
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SUPPORTING DOCUMENTATION FROM JULY 31, 2005
FORM 8697
Attachment
Filing Year Ending 7/31/06
ROGELE, INC.
23-1597186
..
Form 1120
U.S. Corporation Income Tax Return
For calendar year 2004 or tax year beginning. . . . . . . . . ~ 19~.I.9.~ ,ending .... 7.1 ~ 1/9.5
. See se arate Instructions.
Number, street, and room or suite no. City or town, state, and ZIP code B Employer Identification number
If a P,O. box, see page 9 of instructions,
ROGELE INC. 23-1597186
Department of the Treasury
Internal Revenue Service
A Check If:
1 Consolidated retum
(attach Form 851)
2 Personal holding co.
(attach Sch. PH)
3 Personal service corp.
(see instructions)
4 Schedule M-3 required
attach Sch. M-3
Use
IRS
label.
Other-
wise,
print or
e.
Name
E
Income
Deductions
(See
Instructions
for
limitations
on
deductions.)
Tax and
Payments
Sign
Here
Paid
Preparer's
Use Only
STREET
PA 17105-1757
Initial return (2) Final return Address change $
Gross receipts/sales I 14 1 475 1 4081 b Less returns & allowances I Ic Bal.
Cost of goods sold (Schedule A, line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross profit. Subtract line 2 from line 1 c ..........................,...........,......................
Dividends (Schedule C, line 19) ... .......... .......... ....... ......... ......... ..... ... .....
Interest ...,.... . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross rents ......................................................................................
Gross royalties ...................................................................................
Capital gain net income (attach Sch. 0 (Form 1120)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)
Other income (see page 11 of instructions-attach schedule) . . . . . . . . . : : : : : : : : : : : : : : ~~~ : : ?~: : ~ : :
Total Income. Add lines 3 throu h 10 .... .
Compensation of officers (Schedule E, line 4) ........................................................
Salaries and wages (less employment credits) .......................................................
Repairs and maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bad debts
Rents
......................................................... ............................ ........
Taxes and licenses
Interest
Charitabl~ ~~~.trib~ii~.~~ (~~~'p~g~'14 '~f' i~.si~~~ii~~~.f~~ '1'6~;'; ii;';it~ii~~) . : : : : : : : : : : : : ;S~~ : : ~~: : ~ : :
Depreciation (attach Form 4562) . .. . .. .. .. .. .. .. . .. . .. .. .. .. .. 20 1 003 12 0
Less depreciation claimed on Schedule A and elsewhere on return 21a
Depletion ............ _ _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension, profit-sharing, etc., plans ..................................................................
Employee benefit programs ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other deductions (attach schedule) ........................................... ..~~~ . . ~.~. . ~ ..
Total deductions. Add lines 12 through 26 ...................................................... .
Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11
Less: a Net operating 1055 deduction (see page 16 of instructions) . . . . . . 29a
b S eelal deductions Schedule Cline 20 ......... 29b
30 Taxable Income. Subtract line 29c from line 28 (see instructions if Schedule C, line 12, was completed) ....
l!~ ~~~~;~~~~,H:=HHHi3H832~
e Tax deposited with Form 7004.. . ... ... . . . . . .. . . .. .. .. .... .... .. . .. .. . 32e
Credit for tax paid on undistributed capital gains (attach Form 2439) ...... 32f
Credit for Federal tax on fuels (attach Form 4136). See instructions 32
Estimated tax penalty (see page 17 of instructions). Check if Form 2220 is attached ............... .
Tax due. If line 32h is smaller than the total of lines 31 and 33, enter amount owed. . . . . . . . . . . . . . . . . . . . . . .
Overpaymenllf line 32h is larger than the total of lines 31 and 33, enter amount overpaid ................
Enter am!. of line 35 ou want: Credited to 2005 estimated tax. Refunded.
Under penalties of perjury. I declare that I have examined this raturn, including accompanying schedules
and statements, and to the best of my knowledge and belief, It is true, correct, and complete. Declaration
of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
~ I
Si nature of officer Date
Preparer's ...
si nature ~
(1)
1a
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
f
g
33
34
35
36
Date
Firm's name (or yours
if self-employed). ~
address. and ZIP code
BROWN SCHULTZ SHERIDAN
210 GRANDVIEW AVENUE
CAMP HILL PA
& FRITZ
17011
For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.
DM
124
OMS No, 1545-0123
2004
C
Date Incorporated
8/04/1961
D Total assets (see page 8 of instructions)
6 519 965
14 475
10 731
3 743
1c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
408
529
879
944
21b
22
23
24
25
26
27
28
5 183
3 750 006
737 041
203 499
10 536
539 975
91 168
11 186
1 003 120
17 055
33 102
318 014
680 777
3 645 473
104 533
104 533
25 549
13 832
11 717
Preparer's SSN or PTIN
P00004835
25-1644159
Phone no.
717-761-7171
Form 1120 (2004)
..
Form 8697
Interest Computation Under the Look-Back
Method for Completed Long-Term Contracts
(Rev. November 2002)
Department of the Treasury
Internal Revenue Service
~ See se arate Instructions.
8/01/04 7/31/05
e.
124
OMB No. 1545-1031
Attachment
Se uence No. 97
For the filino vear beeinnine and endine . See nane 2 of the instructions.
Name A Identifying number
ROGELE. INC. 23-1597186
Fill In Your Number, street, and apt.. room, or suite no. If a P.O. box. see page 3 of the Instructions. B Check applicable box to show type of taxpayer:
Address Onl~ If lX Corporation 8 S corporation
You Are Fllin~ Thl
FOm1 swara ely City or town, state, and ZIP code Individual Partnership
and Not Ith Your
Tax Return Estate or trust
C If you were an owner of an interest in a pass-through entity (such as a partnership or an S corporation) that holds one or more long-term contracts to which this
interest computation relates, enter the name and employer identification number of the entity. Attach a schedule If there is more than one such entity.
Name of entity I Employer identification number
~@]fji:ji:ti::::
.......................
Regular Method
Taxable inc. or loss for the prior years shown on tax
retum (or as previously adjusted) before net operating
loss or capital loss carrybacks (other than carrybacks
that must be taken into eccountto properly compute
interest under section 460) (see page 3 of the instr.).
If you were required to file Form 8697 for an eartier
year, enter edjusted taxable income for the prior
years from line 3, Form 8697. for the most recent
filing year that affects the prior years. . . . . . . . . . . . . .
2 Adjustment to income to reflect the difference
between: (a) the amount of income required to be
allocated for post-February 1986 contracts completed
or adjusted during the tax year based on the actual
contract price & costs, and (b) the amount of income
reported for such contracts based on estimated
contract price and costs. See page 3 of the instr. and
attach a schedule listing each separate contract,
unlass you were an owner of an interest in a pass-
through entity reporting this amount from Schedule
K-1 or a similar statement
3 Adjusted taxable income for look-back purposes.
Combine lines 1 and 2
4 Income tax liability on line 3 amI. using tax rates in
effact for the prior years (see page 3 of the instr.)
5 Income tax liability shown on return (or as previously
adjusted) for the prior years (sae pg. 3 of the instr.).
If you were required to file Form 8697 for an earlier
year, enter the amount required to be reported on line
4, Form 8697, for the most recent filing year that
affects the prior years
6 Increase or decrease in tax for the prior years on
which interest is due (or is to be refunded). Subtract
line 5 from line 4.
Date of each prior year to which interest
com utation relates:
(a)
Year ended
7/31/03
(b)
Year ended
7/31/04
(c)
Year ended
79 595
95 732
7 094
894 535
86 689
990 267
17 724
336 691
15 312
168
2 412
336 523
7 Interest due on increase, if any, shown on line 6 (see
page 3 of the instructions) . . . . . . . . . . . . . . . . . . . . . . 198 10 619
8 Interest to be refunded on dacrease, if any, shown on
line 6 (see page 3 of the instructions) .............
9 Net amount of Interest to be refunded to you. If line 8, column (d), exceeds line 7. column (d). enter the excess. File
Form 8697 separately; do not attach It to your tax return (see page 3 of the instructions) ..............................................
10 Net amount of Interest you owe, If line 7, column (d), exceeds line 8, column (d), enter the excess. Attach
Form 8697 to our tax return. See a e 4 of the Instructions for where to Include this amount on our return
DM For Privacy Act and Paperwork Reduction Act Notice, see page 5 of the instructions.
10,817
10,817
Form 8697 (Rev. 11.2002)
.,
J
SUPPORTING DOCUMENTATION FROM JULY 31, 2004
FORM 8697
Attachment
Filing Year Ending 7/31/06
ROGELE, INC.
23-1597186
.,
Form 8697
124 Pg 14
Interest Computation Under the Look-Back
Method for Completed Long-Term Contracts
OMS No. 1545-1031
(Rev. November 2002)
Department of the Treasury
Internal Revenue Service
~ See se arate instructions.
8/01/03 d 7/31/04
Attachment
Se uence No. 97
For the filinq year beqinnino , an endinq . See paqe 2 of the instructions.
Name A Identifying number
ROGELE, INC. 23-1597186
Fill In Your Number, street, and apI., room, or suite no. If a P.O. box, see page 3 of the instructions. B Check applicable box to show type of taxpayer:
Address Only If Corporation B
You Are Fllln~ Thl S corporation
Form se&ara ely City or town, state, and ZIP code Individual Partnership
and Not Ith Your
Tax Return Estate or trust
C If you were an owner of an interest In a pass-through enli1y (such as a partnership or an S corporation) that holds one or more long-term contracts to which this
interest computation relates, enter the name and employer identification number of the entity. Attach a schedule If there is more than one such entity.
Name of entity I Employer identification number
~;ib~Mi
~;jit~.!Ut.tl'l<\
Regular Method
Taxable inc. or loss for the prior years shown on tax
return (or as previously adjusted) before net operating
loss or capital loss carrybacks (other than carry backs
that must be taken into account to property compute
Interest under section 460) (see page 3 of the instr.).
If you were required to file Form 8697 for an eartier
year, enter adjusted taxable income for the prior
years from line 3, Form 8697, for the most recent
filing year that affects the prior years. . . . . , . . . . . . . .
2 Adjustment to income to refiectthe difference
between: (a) the amount of income required to be
allocated for post-February 1986 contracts completed
or adjusted during the tax year based on the actual
contract price & costs, and (b) the amount of income
reported for such contracts based on estimated
contract price and costs. See page 3 of the Instr. and
attach a schedule listing each separate contract,
unless you were an owner of an interest In a pass-
through entity reporting this amount from Schedule
K-1 or a similar statement
3 Adjusted taxable income for look-back purposes.
Combine lines 1 and 2
4 Income tax liability on line 3 amI. using tax rates in
effect for the prior years (sae page 3 of the Instr.)
5 Income tax liability shown on return (or as previously
adjusted) for the prior years (see pg. 3 of the instr.).
If you were required to file Form 8697 for an earlier
year, enter the amount required to be reported on line
4, Form 8697, for the most recent filing year that
affects the prior years
6 Increase or decrease In tax for the prior years on
which interest is due (or Is to be refunded). Subtract
line 5 from line 4.
7 Interest due on increase, ff any, shown on line 6 (see
page 3 of the instructions)
Date of each prior year to which interest
com utation relates:
(d)
Totals
(Add columns (a),
(a)
Year ended
7/31/01
(h)
Year ended
7/31/02
(e)
Year ended
7/31/03
-816 290
-271 301
-102 048
17 898
115
-918 338
-253 403
79
13 315
15
13 315
5
168
168
8 Interest to be refunded on decrease, ff any, shown on
line 6 (see page 3 of the instructions) .............
9 Net amount of Interest to be refundad to you. If line 8, column (d), exceeds line 7, column (d), enter the excess. File
Form 8697 separateiy; do not attach it to your tax return (see page 3 of the instructions) .........................
10 Net amount of Interest you owa. If line 7, column (d), exceeds line 8, column (d), enter the excess. Attach
Form 8697 to our tax return. See a e 4 of the instructions for where to Include this amount on our return
DM For Privacy Act and Paperwork Reduction Act Notice, see page 5 of the instructions.
168
Form 8697 (Rev. 11-2002)
Department of the Treasury
. Internal Revenue Service
A Check If:
1 Consolidated return
(attach Form 851)
2 l=>ersonal holding co.
(attach Sch. PH)
3 Personal service corp.
(see instructions)
4 Schedule M-3 required
attach Sch. M-3
. Form 1120
E
Income
Deductions
(See
instructions
for
limitations
on
deductions.)
Tax and
Payments
Sign
Here
Paid
Pre parer's
Use Only
U.S. Corporation Income Tax Return
For calendar year 2004 or tax year beginning. . ... . . .. ~ / O. ~/.0.4 ,ending . . 7/3.1/0.5
~ See se arate instructions.
Number. street, and room or suite no. City or town, state, and ZIP code B Employer identification number
If a P.O. box, see page 9 of instructions.
ROGELE INC. 23-1597186
Name
Use
IRS
label.
Other-
wise,
print or
type.
Initial return (2) Final return Address change
Gross receipts/sales I 14 , 475 , 4081 b Less returns & allowances I
Cost of goods sold (Schedule A, line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross profit. Subtract line 2 from line 1 c
Dividends (Schedule C, line 19)
Interest
Gross rents
Gross royalties
Capital gain net income (attach Sch. D (Form 1120))
Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)
Other income (see page 11 of instructions-attach schedule) . .
Total income. Add lines 3 throu h 10
Compensation of officers (Schedule E, line 4)
Salaries and wages (less employment credits)
Repairs and maintenance
Bad debts
Rents
.......... .
Taxes and licenses
Interest
Charitabl~ ~~~t~ib~ti;~~ (~~~'p~g~'14 '~f i~'st~~~ii~~~'f~~'16% ii~it~ii~~)' : : : : : : : : : : : : ~E;E.: : s.~: : ~: :
Depreciation (attach Form 4562) . . . . . . . . . . .. . , , ' .. . , , ' , , , ' , .. . , .. .. , ' ,20 1 003 120
Less depreciation claimed on Schedule A and elsewhere on return 21a
Depletion ,.',.'".,.."',. """."."."."",.,..," ' ' , . , . , ' , ,. .."..".."
Advertising . ' . , . ' , , , , ' , . . ' . ' . . , . , ' , , ' . ' ' , . , ' , . , ' , , , . ,
Pension, profit-sharing, etc., plans "."""",' ' . . , ' , , , '
Employee benefit programs ..""".......,.."...."",',.,.".,",...,'"
Other deductions (attach schedule) ..""""""",",..,' . , .. .. , .. .. .. SEE, S,T:MT 3
Total deductions. Add lines 12 through 26 ......,.,' . . . , , ' , , ' ~
Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11
Less: a Net operating loss deduction (see page 16 of instructions) ."". 29a
b S ecial deductions Schedule C, line 20 29b
30 Taxable income. Subtract line 29c from line 28 (see instructions if Schedule C, line 12, was completed)
31 Total tax (Schedule J, line 11) .,."."".",.".,"
32 Payments: a 2003 overpayment 32a
credited to 2004
b 2004 estimated tax payments 32b
c Less 2004 refund applied for 32c
on Form 4466 , , . ' . . , ' . . . '
e Tax deposited with Form 7004 , , , , ' , , , ' , , . , , , , , ' , . , ' . , ,
Credit for tax paid on undistributed capital gains (attach Form 2439)
Credit for Federal tax on fuels (attach Form 4136). See instructions 32
Estimated tax penalty (see page 17 of instructions). Check if Form 2220 is attached
Tax due. If line 32h is smaller than the total of lines 31 and 33, enter amount owed
Overpayment. If line 32h is larger than the total of lines 31 and 33, enter amount overpaid
Enter amI. of line 35 au want: Credited to 2005 estimated tax ~
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules
and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration
of preparer (other than taxpayer) is based on all information of which preparer has any knowledge,
~ I
Si nature of officer Date
Pre parer's ~
si nature ,.
C
Date incorporated
8/04/1961
STREET
PA 17105-1757
124
OMS No, 1545-0123
2004
$
Ic Bal~
Total assets (see page 8 of instructions)
6 519 965
14 475
10 731
3 743
408
529
879
D
(1)
1a
2
3
4
5
6
7
8
9
10'
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
1c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
...',. ..' ..." ..,
SEE STMT 1
.,. ... ......
~
... ,_.............. .......... ... ....
...... ...... ................ ............ .............. ..... .......
13 832
f
g
33
34
35
36
Tille
944
5 183
3 750 006
737 041
203 499
10 536
539 975
91 168
11 186
1 003 120
17 055
33 102
318 014
680 777
3 645 473
104,533
104 533
25 549
13 832
11 717
Date
Check if
self-employed
Preparer's SSN or PTIN
P00004835
25-1644159
Firm's name (or yours
if self-employed), ~
address, and ZIP code
BROWN SCHULTZ SHERIDAN
210 GRANDVIEW AVENUE
CAMP HILL PA
& FRITZ
EIN
Phone no.
717-761-7171
17011
For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.
DAA
Form 1120 (2004)
Form 1120 {2004} ROGELE, INC.
124
23-1597186
Pa~e 2
;~.$cfiecfu leA':h{\l Cost of Goods Sold (see Dace 17 of instructions)
1 Inventory at beginning of year. 1
2 Purchases 2
3 Cost of labor 3
4 Additional section 263A costs (attach schedule) 4
5 Other costs (attach schedule) STMT 4 5 10,731,529
6 Total. Add lines 1 through 5 6 10,731,529
7 Inventory at end of year 7
8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 8 10,731,529
9a Check all methods used for valuing closing inventory:
(i) ~ Cost as described in Regulations section 1.471-3
(ii) Lower of cost or market as described in Regulations section 1.471-4
(iii) Other (Specify method used and attach explanation.)~ .............
b Check if there was a writedown of subnormal goods as described in Regulations section 1.471-2(c)
c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) . . . .
d If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing
inventory computed under LIFO. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
e If property is produced or acquired for resale, do the rules of section 263A apply to the corporation?
Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If "Yes,"
attach explanation . . . . . . . . . . .
~;6S~6i.cti.lIilQ. Dividends and Special Deductions (see page 18 of (a) Dividends
instructions) received
2
Dividends from less-than-20%-owned domestic corporations that are subject to the
70% deduction (other than debt-financed stock) ...............................
Dividends from 20%-or-more-owned domestic corporations that are subject to the
80% deduction (other than debt-financed stock) ......................................
Dividends on debt-financed stock of domestic and foreign corporations (section 246A) . . . . . . . . . . .
Dividends on certain preferred stock of less-than-20%-owned public utilities. . . . . . . . . . . . .
Dividends on certain preferred stock of 20%-or-more-owned public utilities. . . . . . . . . .
Dividends from less-than-20%-owned foreign corporations and certain FSCs that are
subject to the 70% deduction ......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends from 20%-or-more-owned foreign corporations and certain FSCs that are
subject to the 80% deduction
3
4
5
6
7
':8'
No
No
(b) %
(e) Special deductions
(a) x (b)
70
80
.see
42
48
70
8 Dividends from wholly owned foreign subsidiaries subject to the 100% deduction (section 245(b))
9 Total. Add lines 1 through 8. See page 19 of instructions for limitation. . . . . ... . . . .. . .
10 Dividends from domestic corporations received by a small business investment
company operating under the Small Business Investment Act of 1958 ....... . . . . . .
11 Dividends from affiliated group members and certain FSCs that are subject to the 100% deduction
12 Dividends from controlled foreign corporations subject to the 85% deduction (attach Form 8895)
13 Other dividends from foreign corporations not included on lines 3, 6, 7, 8, or 11
14 Income from controlled foreign corporations under subpart F (attach Form(s) 5471)
15 Foreign dividend gross-up (section 78) ..................................
16 IC-DISC and former DISC dividends not included on lines 1,2, or 3 (section 246(d)) ...
17 Other dividends
...........,. .........
18 Deduction for dividends paid on certain preferred stock of public utilities
19 Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4 ~
20 Total s eeial deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on a e 1, line 29b . . . ~
!\,.sGtiecll.lleEr;~!. Compensation of Officers (see instructions for page 1, line 12, on page 13 of instructions)
Note: Complete Schedule E onlv if total receipts (line 1 a plus lines 4 throuah 10 on pace 1 \ are $500,000 or more.
(a) Name of officer (b) Social security number (e) ~ercent of Perc~r~ccr g.';',';P..o,1"ation
time devoted to (f) Amount of compensation
business (d) Common (e) Preferred
1 DENNIS D MCCLURE 186-38-3941 100.000% % % 95,101
JAMES R MCCLURE, IV 170-54-8224 100.000% 23.658% % 230,075
CHRISTOPHER MCCLURE 170-54-2734 100.000% 23.658% % 221,507
JUDITH A. MCCLURE 161-34-4493 50.000% 5.370% % 190,358
% % %
2 Total compensation of officers 737,041
.... . ... . . . . . . ... . .. . .. . .. .' . .. . . . . . .... . . . . . . . .
3 Compensation of officers claimed on Schedule A and elsewhere on return
... . .. . . . . . . . . .. . .
4 Subtract line 3 from line 2. Enter the result here and on Daae 1, line 12 .. . 737,041
DM
Form 1120 (2004)
Form 1120 (2004) ROGELE, INC.
';;SctiedUle;;u~i;;i;; Tax Com utation see a e 20 of instructions
Check if the corporation is a member of a controlled group (see sections 1561 and 1563) ., .. .
Important: Members of a controlled group, see page 20 of instructions.
2a If the box on line 1 is checked, enter the corporation's share of the $50,000, $25,000, and $9,925,000 taxable
income brackets (in that order):
1$ I
Income tax. Check if a qualified personal service corp. under section 448(d)(2)(see page 21)
Alternative minimum tax (attach Form 4626)
Add lines 3 and 4 . . . . . . . . . . .
Foreign tax credit (attach Form 1118) . . . . .
Possessions tax credit (attach Form 5735) ....... . . . . .
D Nonconventional D .
c Check: source fuel credit QEV credit (all. Form 8834) . . . . . . . . . . . . . . . . . .
d General business credit. Check box(es) and indicate which forms are attached:
D Form 3800 D Form(s) (specify) ~ ......... . . . ... . . .
e Credit for prior year minimum tax (attach Form 8827) . . .
Qualified zone academy bond credit (attach Form 8860) . . .
Total credits. Add lines 6a through 6f . . . . . . . . . . . . . . . . . . . . . .
Subtract line 7 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Personal holding company tax (attach Schedule PH (Form 1120)) ... ... . ...... . .
Other taxes. Check if from: D Form 4255 D Form 8611 ~ Form 8697
D Form 8866 D Other (attach schedule) .. .
11 Total tax. Add lines 8 throu h 10. Enter here and on a e 1, line 31
'i,~Scf1eau(e~K~~ Other Information a e 23 of instructions
1 Check accounting method: 7
b ~ Accrual c
(specify) ~
and distributions in exchange for stock) in excess of the corporation's Are the corporation's total receipts (line 1 a plus lines 4
current and accumulated earnings and profits? (See sections 301 and 316.) through 10 on page 1) for the tax year and its total assets
If "Yes," file Form 5452, Corporate Report of at the end of the tax year less than $250,000? .
Nondividend Distributions. If "Yes," the corporation is not required to complete
Schedules L. M-1, and M-2 on page 4. instead. enter the
If this is a consolidated return, answer here for the parent total amount of cash distributions and the book value of
corporation and on Form 851, Affiliations Schedule, for property distributions (other than cash) made during the tax
each subsidiary. year. ~ $ . . . . . . . . . .
Note: If the corporation, at any time during the tax year, had assets or operated a business in a foreign country or U.S. possession, it may be
required to attach Schedule N (Form 1120), Foreign Operations of U.S. Corporations, to this return. See Schedule N for details.
OM I'orm 1120 (2004)
b
(1)
Enter the corporation's share of: (1)
(2)
(2) 1$
Additional 5% tax (not more than $11,750)
Additional 3% tax (not more than $100,000)
3
4
5
6a
b
f
7
8
9
10
2
See page 25 of the instructions and enter the:
Business activity code no. ~ ..2 ~ ? 9 0 0
Business activity ~ . q()~R.A.C:r()~ . . . . . . . . . . . . . . . .
Productorservice ~ CONSTRUCTION
.... ...................'..
a
b
c
3
At the end of the tax year, did the corporation own, directly or indirectly,
50% or more of the voting stock of a domestic corporation? (For rules of
attribution. see section 267(c).)
4
If "Yes," allach a schedule showing: (a) name and employer identification
number (EIN), (b) percentage owned, and (c) taxable income or (loss) before
NOL and special deductions of such corporation for the tax year ending
with or within your tax year.
Is the corporation a subsidiary in an affiliated group or a
parent-subsidiary controlled group?
If "Yes," enter name and EIN of the parent corp. ~
5
At the end of the tax year, did any individual, partnership,
corporation, estate, or trust own, directly or indirectly,
50% or more of the corporation's voting stock? (For rules
of attribution, see section 267(c).) . . . . . . . . . . . . . . . . . . . . . S.~MT 5
If "Yes," attach a schedule showing name and identifying
number. (Do not include any information already entered
in 4 above.) Enter percentage owned ~ ~ O. O.'~ .0.0 () .
During this tax year, did the corp. pay dividends (other than stock dividends
6
23-1597186
(3)
$
$
$
~
~
6a
6b
6c
6d
6e
6f
c
At any time during the tax year, did one foreign person own, directly
or indirectly, at least 25% of (a) the total voting power of all
classes of stock of the corporation entitled to vote or (b) the total
value of all classes of stock of the corporation?
If "Yes," enter: (a) Percentage owned ~
and (b) Owner's country ~ ..........
The corporation may have to file Form 5472, Information
Return of a 25% Foreign-Owned U.S. Corporation or a
Foreign Corporation Engaged in a U.S. Trade or Business.
Enter number of Forms 5472 attached ~
8
Check this box if the corporation issued publicly offered
debt instruments with original issue discount . . . . . . . .. .. ~ D
If checked, the corporation may have to file Form 8281, Information
Return for Publicly Offered Original Issue Discount Instruments.
Enter the amount of tax-exempt interest received or
accrued during the tax year ~ $ 0
Enter the number of shareholders at the end of the tax
year (if 75 or fewer) ~ 5
9
If the corporation has an NOL for the tax year and is
electing to forego the carryback period, check here ~ D
If the corporation is filing a consolidated return, the
statement required by Temporary Regulations section 1.1502-21 T
(b)(3)(i) or (ii) must be attached or the election will not be valid.
Enter the available NOL carryover from prior tax years
(Do not reduce it by any deduction on line
29a.) ~ $
124
Page 3
24
018
24
018
9 286
14 732
10 817
25 549
124
ROGELE, INC.
23-1597186
Pa~e 4
(d)
1
2a
b
3
4
5
6
7
8
9
10a
b
11a
b
12
13a
b
14
15
Cash ....................
Trade notes and accounts receivable
Less allowance for bad debts
Inventories
U.S. government obligations
Tax-exempt securities (see instructions) ....
Other current assets (all. sch.) . . El':I'M.'I' . .6
Loans to shareholders
Mortgage and real estate loans
Other investments (attach sch.)
Buildings and other depreciable assets
Less accumulated depreciation . . . . . . . . . .
Depletable assets .........
Less accumulated depletion
Land (net of any amortization)
Intangible assets (amortizable only)
Less accumulated amortization
Other assets (attach sch.)
Total assets .
Liabilities and Shareholders' Equity
Accounts payable
56 566
STMT 7
15 940
6 519 965
~-~.-
1 028 773
409 909
119 662
16
17
18
19
20
21
22
Mortgages. notes. bonds payable in less than 1 year
Other current liabilities STMT 8
Loans from shareholders
Mortgages. notes. bonds payable in 1 year or more
Other liabilities (allach schedule) . El':I'M.'I'. 9
Capital stock: a Preferred stock
b Common stock
23 Additional paid-in capital
24 Retained earnings-Appropriated
25 Retained earnings-Unappropriated
26 Adjustments to SH equity (all.sch.)
27 Less cost of treasury stock
28 Total liabilities and shareholders' e uit
.?ScHedUle~!M11~ Reconciliation of Income
1 Net income (loss) per books
2 Federal income tax per books . . . . . . . . . . . . .
3 Excess of capital losses over capital gains.
4 Income subject to tax not recorded on books
this year (itemize): ...........
2 055 469
359)
5 Expenses recorded on books this year not
deducted on this return (itemize):
a Depreciation... $
b f~rft~\~Stli~ns.. $
c Travel and
entertainment . $. .
STMT 10
6 Add lines 1 throu h 5
SChedllleM-2l
1 Balance at beginning of year
2 Net income (loss) per books
3 Other increases (itemize):
4 Add lines 1. 2. and 3
DAA
2 055 469
2 055 469
Form 1120 (2004)
Form 4626
Alternative Minimum Tax-Corporations
Department of the Treasury
Internal Revenue Service
Name
~ See separate instructions.
~ Attach to the cor oration's tax return.
124
OMS No. 1545-0175
2004
ROGELE
INC.
1
2
Note: See page 1 of the instructions to find out if the corporation is a small corporation exempt
from the alternative minimum tax (AMT) under section 55(e).
Taxable income or (loss) before net operating loss deduction. .
Adjustments and preferences:
Depreciation of post-1986 property . . .
Amortization of certified pollution control facilities. . . . . . . . . .
Amortization of mining exploration and development costs ........................................
Amortization of circulation expenditures (personal holding companies only) . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted gain or loss ................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term contracts ......................................................................................
Merchant marine capital construction funds ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 833(b) deduction (Blue Cross, Blue Shield, and similar type organizations only) ..................... . . . . . . . .
Tax shelter farm activities (personal service corporations only) ................................ . . . . . . . . . . .
Passive activities (closely held corporations and personal service corporations only)
Loss limitations
............... ........ ..-.... ...... .......
Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
m Tax-exempt interest income from specified private activity bonds
Intangible drilling costs . . . . . . . . . . . . . . . . . .
Other adjustments and preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pre-adjustment alternative minimum taxable income (AMTI). Combine lines 1 through 20
Adjusted current earnings (ACE) adjustment:
ACE from line 10 of the worksheet on page 11 of the instructions .............
Subtract line 3 from line 4a. If line 3 exceeds line 4a, enter the difference as a
negative amount. See examples on page 6 of the instructions
Multiply line 4b by 75% (.75). Enter the result as a positive amount. . .
Enter the excess, if any, of the corporation's total increases in AMTI from prior
year ACE adjustments over its total reductions in AMTI from prior year ACE
adjustments (see page 6 of the instructions). Note: You must enter an amount
on line 4d (even if line 4b is positive) . . . . . . . . . . . . . . . . . . . . . . . .
2'
2k
21
2m
2n
20
1
a
2a
2b
2c
b
c
d
e
f
9
h
I
j
k
I
n
STMT 11
o
3
4
1~3
a
4a
b
31
23
c
4b
4c
d
4d
403 113
e ACE adjustment:
. If line 4b is zero or more, enter the amount from line 4c
. If line 4b is less than zero, enter the smaller of line 4c or line 4d as a negative amount
} ................
4e
5 Combine lines 3 and 4e. If zero or less, stop here; the corporation does not owe any AMT . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Alternative tax net operating loss deduction (see page 7 of the
instructions
....... ....... ........ ,.......".,. .................................. ..,..." ..,.
7 Alternative minimum taxable income. Subtract line 6 from line 5. If the corporation held a residual
interest in a REMIC, see page 7 of the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Exemption phase-out (if line 7 is $310,000 or more, skip lines 8a and 8b and enter -0- on line 8c):
a Subtract $150,000 from line 7 (if completing this line for a member of a controlled
group, see page 7 of the instructions).
If zero or less, enter -0- . . . . . . . . . Ba
b Multiply line 8a by 25% (.25) Bb
c Exemption. Subtract line 8b from $40.000 (if completing this line for a member of a controlled group,
see page 7 of the instructions). If zero or less, enter -0- .
9 Subtract line Bc from line 7. If zero or less, enter -0- .
10 Multiply line 9 by 20% (.20) .
11 Alternative minimum tax foreign tax credit (AMTFTC) (see page 7 of the instructions)
12 Tentative minimum tax. Subtract line 11 from line 10
13 Regular tax liability before all credits except the foreign tax credit and possessions tax credit.
14 Alternative minimum tax. Subtract line 13 from line 12. If zero or less, enter -0-. Enter here and on
Form 1120, Schedule J, line 4, or the a ro riate line of the cor oration's income tax return
For Paperwork Reduction Act Notice, see page 10 of the instructions.
DAA
5
6
104 533
10 548
-1 443
113 638
23
113 661
113 661
Bc 40,000
9 73 661
10 14 732
11
12 14,732
13 24 018
14 0
Form 4626 (2004)
124
Depreciation and Amortization
OMB No. 1545-0172
Department of the Treasury
Internal Revenue Service
Name(s) shown on return
ROGELE INC.
~ See se arate instructions.
~ Attach to our tax return.
2004
~~a~~~c~~o. 67
Form 4562
(Including Information on Listed Property)
Identifying number
23-1597186
6
1
2
3
4
5
102 000
1
2
3
4
5
Maximum amount. See page 2 of the instructions for a higher limit for certain businesses ...
Total cost of section 179 property placed in service (see page 3 of the instructions)
Threshold cost of section 179 property before reduction in limitation
Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0-
Dollar limitation for tax
410 000
c Elected cost
7 Listed property. Enter the amount from line 29 ........................................
8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7
9 Tentative deduction. Enter the smaller of line 5 or line 8
...................,......,' .........-............. ,_. ....
10 Carryover of disallowed deduction from line 13 of your 2003 Form 4562 .........................................
11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions)
12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11
13 Car over of disallowed deduction to 2005. Add lines 9 and 10, less line 12
Note: Do not use Part II or Part III below for listed property. Instead, use Part V.
f~.;Part'i1l1' S ecial De reciation Allowance and Other De reciation Do not include listed
14 Special depreciation allowance for qualified prop. (other than listed prop.) placed in service during the tax year (see pg. 3 of the instructions)
15 Property subject to section 168(f)(1) election (see page 4 of the instructions) .
16 Other deF reciation includin ACRS see a e 4 of the instructions ..
j':PaH;ilOi MACRS Depreciation (Do not include listed property.) (See paqe 5 of the instructions.)
Section A
17 MACRS deductions for assets placed in service in tax years beginning before 2004
18 If you are electing under section 168(i)(4) to group any assets placed in service during the tax year
into one or more eneral asset accounts, check here. . .
Section B-Assets Placed in Service Durin 2004 Tax Year Us in the General De reciation S stem
(b) Month and (c) Basis for depreciation (d) Recovery
year placed in (business/investment use . d (e) Convention
service onl -see instructions peno
7
8
9
10
11
12
~
13
126 220
2 696
(a) Classification of property
(f) Method
(g) Depreciation deduction
19a
b
h
831 163
5.0
HY
200DB
166 237
d
Nonresidential real
property
11/11/04
2/25/05
4 130
122 512
MM
MM
MM
MM
75
1 440
2004 Tax Year Us in the Alternative De
20a Class life
b 12- ear 12 yrs.
c 40- ear 40 rs. MM
Part IV Summa
21 Listed property. Enter amount from line 28
22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21.
Enter here and on the appropriate lines of your return. Partnerships and S corporations-see instr.
23 For assets shown above and placed in service during the current year,
enter the ortion of the basis attributable to section 263A costs 23
For Paperwork Reduction Act Notice, see separate instructions.
DAA
SIt.
SIt.
SIt.
21
17 160
22
Form 4562 (2004)
124
ROGELE, INC. 23-1597186
Form 4562 (2004) PaQe 2
lJ.~~rt!M~; Listed Property (Include automobiles, certain other vehicles, cellular telephones, certain computers, and
.,-, ,._".~ property used for entertainment, recreation, or amusement.) .
Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only
24a, 24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable.
(f)
Recovery
period
(g)
Method/
Convention
( ) (b) (c) (d) ( )
a Business/ e
Type of prop. Date placed in investment Cost or other Basis for depreciation
(list vehicles service use basis (business/investment
first) ercenta e use only)
25 Special depreciation allowance for qualified listed property placed in service during the tax
year and used more than 50% in a qualified business use (see page 8 of the instructions) ..'
26 Pro ert used more than 50% in a ualified business use see a e 8 of the instructions:
SEE S ATEMENT 2
25
%
371 012
371 012
17 160
27
%
ualified business use see a e 8 of the instructions:
%
S/L-
28 Add amounts in columl) (h), lines 25 through 27. Enter here and on line 21, page 1 28 1 7
29 Add amounts in column i line 26. Enter here and on line 7, a e 1
Section B-Information on Use of Vehicles
Complete this section for vehicles used by a sole proprietor, partner, or other "more than 5% owner," or related person.
If you provided vehicles to your employees, first answer the questions in Section C to see if you meet an exception to completing this section for those vehicles.
%
S/L-
30 Total business/investment miles driven (a) (b) (c) (d) (e) (f)
during the year (do not include commuting Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicle 5 Vehicle 6
miles-See page 2 of the instructions) .. ... ..... "
31 Total commuting miles driven during the year
.... ....
32 Total other personal (noncommuting) miles driven
.. .
33 Total miles driven during the year.
Add lines 30 through 32 .. .. .. .... . . . . . ..,.... .. .. .
34 Was the vehicle available for personal Yes No Yes No Yes No Yes No Yes No Yes No
use during off-duty hours? .. ........ ...... ....... .
35 Was the vehicle used primarily by a
more than 5% owner or related person? . . . . . ...... .
36 Is another vehicle available for oersonal use? ...... .
Section C-Questions for Employers Who Provide Vehicles for Use by Their Employees
Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are
not more than 5% owners or related persons (see page 10 ofthe instructions).
Yes No
37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by your employees?
38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees?
See page 10 of the instructions for vehicles used by corporate officers, directors, or 1 % or more owners
39 Do you treat all use of vehicles by employees as personal use?
40 Do you provide more than five vehicles to your employees, obtain information from your employees about
the use of the vehicles, and retain the information received? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41 Do you meet the requirements concerning qualified automobile demonstration use? (See page 10 of the instructions.)
Note: If our answer to 37 38,39,40, or 41 is "Yes," do not com lete Section B for the covered vehicles.
,PilrtVI Amortization
(a)
Description of costs
(b)
Date amortization
begins
(c)
Amortizable
amount
(d)
Code
section
(e)
Amortization
period or
ercenta e
(f)
Amortization for
this year
42 Amortization of costs that be
a e 11 of the instructions:
43
44
o
43 Amortization of costs that began before your 2004 tax year . . . . . . . . . . . . . . . . . . . . .
44 Total. Add amounts in column . See a e 12 of the instructions for where to re ort
DAA
Form 4562 (2004)
Form 8697
Interest Computation Under the Look-Back
Method for Completed Long-Term Contracts
(Rev. November 2002)
124
OMS No. 1545-1031
Attachment
Se uence No. 97
F or the filin
~ See se arate instructions.
8/01/04 ,and endin 7 /31/05
~ Please rint or
. See a e 2 of the instructions.
A Identifying number
23-1597186
Check applicable box to show type of taxpayer:
Corporation 0 S corporation
Individual 0 Partnership
Estate or trust
C If you were an owner of an interest in a pass-through entity (such as a partnership or an S corporation) that holds one or more long-term contracts to which this
interest computation relates, enter the name and employer identification number of the entity. Attach a schedule if there is more than one such entity.
Name
ROGELE
INC.
Number, street, and apt.. room, or suite no. If a P.O. box, see page 3 of the instructions.
8
Fill In Your
Address Only If
You Are Filing Thi
Form Separalely
and Not With Your
Tax Return
City or town. state, and ZIP code
Name of entity
Regular Method
Taxable inc. or loss for the prior years shown on tax
return (or as previously adjusted) before net operating
loss or capital loss carrybacks (other than carrybacks
that must be taken into account to properly compute
interest under section 460) (see page 3 of the instr).
If you were required to file Form 8697 for an earlier
year. enter adjusted taxable income for the prior
years from line 3, Form 8697, for the most recent
filing year that affects the prior years
2 Adjustment to income to reflect the difference
between: (a) the amount of income required to be
allocated for post-February 1986 contracts completed
or adjusted during the tax year based on the actual
contract price & costs, and (b) the amount of income
reported for such contracts based on estimated
contract price and costs. See page 3 of the instr and
attach a schedule listing each separate contract,
unless you were an owner of an interest in a pass-
through entity reporting this amount from Schedule
K-1 or a similar statement
3 Adjusted taxable income for look-back purposes.
Combine lines 1 and 2
4 Income tax liability on line 3 amt. using tax rates in
effect for the prior years (see page 3 of the instr)
5 Income tax liability shown on return (or as previously
adjusted) for the prior years (see pg. 3 of the instr).
If you were required to file Form 8697 for an earlier
year, enter the amount required to be reported on line
4, Form 8697. for the most recent filing year that
affects the prior years
6 Increase or decrease in tax for the prior years on
which interest is due (or is to be refunded). Subtract
line 5 from line 4.
Employer identification number
Date of each prior year to which interest
com utation relates:
(a)
Year ended
7/31/03
(b)
Year ended
7/31/04
(c)
Year ended
79 595
95 732
7 094
894 535
86 689
990 267
17 724
336 691
15 312
168
2 412
336 523
7 Interest due on increase, if any, shown on line 6 (see
page 3 of the instructions) . 19 8 1 0 61 9
8 Interest to be refunded on decrease, if any, shown on
line 6 (see page 3 of the instructions)
9 Net amount of interest to be refunded to you. If line 8, column (d), exceeds line 7, column (d), enter the excess. File
Form 8697 separately; do not attach it to your tax return (see page 3 of the instructions)
10 Net amount of Interest you owe. If line 7, column (d), exceeds line 8, column (d), enter the excess. Attach
Form 8697 to our tax return. See a e 4 of the Instructions for where to include this amount on our return .
DAA For Privacy Act and Paperwork Reduction Act Notice. see page 5 of the instructions.
10 817
10 817
Form 8697 (Rev. 11-2002)
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Supporting Documentation from July 31, 2004
FORM 8697
Attachment
Filing Year ending: 7/31/05
Rogele, Inc.
EIN # 23-1597186
."., rl:! 0
1120 u.s. Corporation Income Tax Return OMS No. 1545-0123
Form For calendar year 2003 or tax year beginning. . . . . . . . . ~ I q ~/9.~ I ending .....7 l~l.1.9.~
Department of the Treasury 2003
Internal Revenue Service ~ Instructions are seoarate. See Dace 20 for Paoerwork Reduction Act Notice.
A Check If a: Use Name Number, street, and room or suite no. Cily or town, state, and ZIP code B Employer identification number
1 Consolidated return B IRS ROGELE, INC. 23-1597186
(attach Form 851) label.
2 Personal hOldi~~ co. Other- C Date incorporated
(attach Sch. P
3 perso~al servi~e co/;l1' wise, 1025 S. 21ST STREET 8/04/61
(as de Ined in egul lIonn print or
r~s1n1c~~~;~(c)-see Woe. HARRISBURG PA 17105-1757 D Total assets (see page 8 of instructions)
E Check applicable boxes: (1) I I Initial return (2) I I Final return (3\ I I Name chanoe (4) I I Address change $ 6 375,932
1a Gross rcpt.lsales I 13 , 629 ,5301b Less returns & allowances I Ie Bal~ 1c 13.629.530
2 Cost of goods sold (Schedule A, line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 10,520.947
3 Gross profit. Subtract line 2 from line 1c 3 3,108,583
.... .............. .......... ...................... .... .......
4 Dividends (Schedule C, line 19) .. ..... . . .. . . . . . .. . . . . .. . . . .. . . . . . . . . ..... .. ... . ....... . . . .. . . . . .. . .. 4
Income 5 interest ......... ... ........ ........ ......... .... ...... .,. ....... ................... ... ...... ..... 5 1.291
6 Gross rents .... ...... ....................... ............... ..... ...................... ...... ..... 6
7 Gross royalties 7
., ......................... ..... ...... ....... ..... ...................... ...... .....
8 Capital gain net income {attach Sch. D (Form 1120)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 30.451
9 Net gain or (loss) from Form 4797, Part 11, line 18 (attach Form 4797) . . . .. . .. .. . . . .. .. .. . .. . . . . .. .. . . . . . 9 8.656
10 Other income (see page 9 of instructions-attach schedule) ........................ .~~~. .~.~.. ~.. 10 9,784
11 Total income. Add lines 3 throuah 10 . . . . . . . . . . . . . . . ....... . ........ .. ... . . ....... -.. ....... .... ~ 11 3.158.765
12 Compensation of officers (Schedule E,line 4) 12 590,485
................... .... ......................4... .......
13 Salaries and wages (less employment credits) 13 166,850
..................... ....................... .... .......
14 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
15 Bad debts 15 14,345
..... ...... ........................ ............ ........ .......................... .... ...
16 Rents 16
..... ... ....... .............................. .................. ............... ..... .... ... ...
Deductions 17 Taxes and licenses 17 530,296
. ......... .................... ................ ........................... .... ...
18 Interest 18 78.753
...... ............................... ........ ..... .,. .... ....................... .,. .... ..,
(See 19 Charitable contributions (see page 11 of instructions for 10% limitation) .... f.... i'" .... .. .$.~. . ~. 19 5,804
instructions 20 Depreciation (attach Form 4562) .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. . .. 20 754 , 740 ;,:'t
for 21 Less depreciation claimed on Schedule A and elsewhere on retum 21a I 21b 754,740
... ....
limitations 22 Depletion 22
.... .,. ........... ................. ... ... ............. ......................... ....... ...
on 23 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 23 9.890
deductions.) 24 Pension, profit-sharing, etc., plans 24 30,702
.... ........................ ............................ ... .......
25 Employee benefit programs ............... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 270 468
26 Other deductions (attach schedule) SEE STMT 3 26 610,700
............... ... ............. ........................ ..........
27 Total deductions. Add lines 12 through 26 . . . . . ... . . . . ... .. . .. .. . . . . .. . .. .. .. . .., .... .. . . . ... . .. ~ 27 3.063 033
28 Taxable income before net operating loss deduction and special deductions. jUbtrat line 27 from line 11 ... 28 95.732
29 Less: a Net operating loss (NOL) deduction (see page 13 of instructions) 29a 43 493 2->
b Soecial deductions (Schedule C line 2m .......... ....... . .. . 29b I 29c 43,493
30 Taxable income. Subtract line 29c from line 28 30 52.239
. ................... ........................ ...... ....
31 Total tax (Schedule J, line 11) ............ ....... ................ ........................ .......... 31 168
32 a 2002 overpayment 32a 3 033 s;.; ., ~'Y~1
Payments: credited to 2003 .. ,2
.. .....,j
b 2003 estimated tax payments 32b 10 967 .+:,)~,:; ,;(,
C Less 2003 refund applied for .. Zi':
on Form 4466 32c dBal~ 32d 14,000
.. ................ ;'J,
Tax and e Tax deposited with Form 7004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32e
Payments f Credit for tax paid on undistributed capital gains (attach Form 2439) 32f ,'"
.... ..
g Credit for Federal tax on fuels (attach Form 4136). See instructions 32a 32h 14,000
..... .. ~D
33 Estimated tax penalty (see page 14 of instructions). Check if Form 2220 is attached 33
............ ...
34 Tax due. If line 32h is smaller than the total of lines 31 and 33, enter amount owed 34
............. ....... ..,
35 Overpayment. If line 32h is larger than the total of lines 31 and 33, enter amount overpaid ...... . . . . . . . . . . 35 13.832
36 Enter amI. of line 35 vou want: Credited to 2004 estimated tax ~ 13,832 Refunded ~ 36
Under penalties of perjury, I dedare that I have examined this return, induding accompanying schedules I May the IRS discuss this return with the Rarer 1
Sign and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Dedaration shown below (see instr.l? '!XI Yes No
of preparer (other than taxpayer) is based on all information of which preparer hes any knowledge.
Here ~ I ~ Title
Sianature of officer Date
Pre parer's ~ I Date I Check if I Pre parer's SSN or PTIN
Paid sianature self-employed I POOO04835
Preparer's Firm's name (or yours CHUBB AND ASSOCIATES EIN 25-1645828
Use Only if self-employed), ~ P.O. BOX 6597 Phone no.
address, and ZIP code HARRISBURG. PA 17112-0597 717-541-1860
Form 1120 (2003)
DAA
Form 8697
Interest Computation Under the Look-Back
Method for Completed Long-Term Contracts
OMS No. 1545-1031
(Rev. November 2002)
Department of the Treasury
Internal Revenue Service
Attachment
Se uence No. 97
~ See se arate Instructions.
8/01/03 7/31/04
e.
For the filinQ vear beoinnino ' and endine . See oaoe 2 of the instructions.
Name A Identifying number
ROGELE. INC. 23-1597186
Fill In Your Number. street, and apt., room, or suite no. If a P.O. box, see page 3 of the instructions. B ~heck applicable box to show type of taxpayer.
Address Only' If ~ Corporation 8 S corporation
You Are Flllna Thi
Form Se&fra sly
and Not th Your City or town, state, and ZIP code I- Individual Partnership
Tax Return Estate or trust
C If you were an owner of an interest in a pass-through entity (such as a partnership or an S corporation) that holds one or more long-term contracts to which this
Interest computation relates, enter the name and employer identification number of the entity. Attach a schedule if there is more than one such entity.
Name of entity Employer identification number
Part' Regular Method
1 Taxable Inc. or loss for the prior years shown on tax
return (or as previously adjusted) belore net operating
loss or capital loss carrybacks (other than carrybacks
that must be taken into account to properly compute
interest under section 460) (see page 3 of the instr.).
If you were required to fde Form 8697 for an earlier
year, enter adjusted taxable income for the prior
years from line 3, Form 8697, for the most recent
filing year that affects the prier years . . . . . . . . . . . . . .
2 Adjustment to income to renect the difference
between: (a) the amount of income required to be
allocated for post-February 1986 contracts completed
or adjusted during the tax year based on the actual
contract price & costs, and (b) the amount of income
reported for such contracts based on estimated
contract price and costs. See page 3 of the instr. and
attach a schedule listing each separate contract,
unless you were an owner of an interest in a pass-
through entity reporting this amount Irom Schedule
K-1 or a similar statement
.0.. ..................
3 Adjusted taxable income for look-back purposes.
Combine lines 1 and 2
......... ................
4 Income tax liability on line 3 amI. using tax rates in
effect for the prior years (see page 3 of the lnstr.)
5 Income tax liabHity shown on return (or as previously
adjusted) for the prior yaars (see pg. 301 the instr.).
II you were required to file Form 8697 for an earlier
year, enter the amount required to be reported on line
4, Form 8697, for the most recent filing year that
affects the prior years .........................
6 Increase or decrease in tax for the prior years on
which interest is due (or is to be refunded). Subtract
line 5 from line".
........... ..................
Date of each prior year to which interest
com utation relates:
(a)
Year ended
7/31/01
(b)
Year ended
7/31/02
(c)
Year ended
7/31/03
-816 290
-271 301
-36 061
-102 048
17 898
115 656
-918 338
-253 403
79 595
13 315
15
13 315
10 282
5 030
7 Interest due on increase, if any. shown on line 6 (see
page 3 of the instructions) . . . . . . . . . . . . . . . . . . . . . . 168 168
8 Interest to be relunded on decrease, if any, shown on
line 6 (see page 3 of the Instructions) .............
9 Net amount 01 Intarest to be refunded to you. II line 8, column (d), exceeds line 7, column (d), enter the excess. FDe
Form 8697 separately; do not attach it to your tax retum (see page 3 of the instructions) ..............................................
10 Net amount of Interest you owe. If line 7, column (d), exceeds line 8, column (d), enter the excess. Attach
Form 8697 to our tax return. See a e" of the instructions for where to include this amount on our return. 168
OM For Privacy Act and PapelWork Reduction Act Notice, see page 5 of the instructions. Form 8697 (Rev. 11-2002)
124
Form 8827
Credit for Prior Year Minimum Tax-Corporations
OMS No. 1545-1257
~ Attach to the corporation's tax return.
2004
~tg~~r~~~~~~~e s~~?;~ry
Name
ROGELE INC.
1 Alternative minimum tax (AMT) for 2003. Enter the amount from line 14 of the 2003 Form 4626
2 Minimum tax credit carryforward from 2003. Enter the amount from line 9 of the 2003 Form 8827
3 Enter the total of any 2003 unallowed nonconventional source fuel credit and 2003 unallowed
qualified electric vehicle credit (see instructions) .................................................................
4 Add lines 1 2 and 3
Employer Identification number
23-1597186
1
2
15 537
3
4
15.537
. . .. ....................................................................,................
5
Enter the corporation's 2004 regular income tax liability minus allowable tax credits (see
instructions) .................................................................................................
Is the corporation a "small corporation" exempt from the AMT for 2004 (see instructions)?
. Yes. Enter 25% of the excess of line 5 over $25,000. If line 5 is $25,000 or less, enter -0-
. No. Complete Form 4626 for 2004 and enter the tentative minimum tax from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 6 from line 5. If zero or less, enter -0- .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ... . . . . . . . . . . . . . . . . . . . . . .
Minimum tax credit. Enter the smaller of line 4 or line 7 here and on Form 1120, Schedule J,
line 6e or the appropriate line of the corporation's income tax return. If the corporation had a
post-1986 ownership change or has pre-acquisition excess credits, see instructions ........................... .....
Minimum tax credit carryforward to 2005. Subtract line 8 from line 4. Keep a record of this
amount to carry forward and use in future vears . . . . . . . . . . . . . . . . .
5
24.018
6
7
8
6
7
14.732
9.286
8
9 286
9
9
6 251
OM
Form 8827 (2004)
124
NOL and Contribution Carryover Worksheet - Regular Tax
2004
Form 1120
8/01/04
, endin
7/31/05
Employer Identification Number
Name
ROGELE INC.
23-1597186
Car overs
Current Year
Income Offset By
NOL Carrybackl
Carryover
NOL Utilized
Next Year
Prior Year
Preceding
Taxable Year
15th
7/31/90
14th
7/31/91
13th
7/31/92 -936 487
12th -7,342
7/31/93 -7 342
11th -3,250
7/31/94 -3 250
10th -12,675
7/31/95 -12 675
9th
7/31/96 125 907
th
7/31/97 9 080
7th
7/31/98 41 567
6th -1,391
7/31/9 -369 090
5th
7/31/00 13 912
4th -53,811
7/31/01 -473 582
3rd
7/31/02 662 774
2nd
7/31/03 122 493
1st
7/31/04 95 732
936 487
7 342
3 250
12 675
-38 287
369 090
-13 912
473 582
-662 774
-122 493
-43 493
Current Year
o
104 533
NOL Carryover Available To Current Year
NOL Carryover Available To Next Year
o
Charitable Contributions Prior Year Current Year Next Year
Preceding Excess Utilized Or Reclassed to NOL Carryovers
Tax Year Contributions Reclassed to NOL Carryover Rea.Sec. 1.170A-11lc)(2 Utilized Carryover
7/31/00 8.883 8.883
m 7/31/01 2.643 2,643
7/31/02 5.411 5.411
n"," 7/31/03 7.432 7.432
7/31/04 1.261 1.261 1,261
Charitable Contribution Carryover To Current Year 1,261 I".",,;.', ,:iF'.;t;) ;';,
,"';,
Current Year 0 ;::-';;:;;;.'"L >,:;;.'" ,'''d'",,;,'.,,; 1,261 0
Charitable Contribution Carryover Available To Next Year 0
Form 1120
Name
124
NOL and Contribution Carryover Worksheet - AMT
2004
8/01/04
7/31/05
Employer Identification Number
, endin
23-1597186
ROGELE INC.
Prior Year
Current Year
Income Offset By
NOL CarrybackJ
Carryover
NOL Utilized
Next Year
Preceding
Taxable Year
15th
7/31/90
14th
7/31/91
13th
7/31/92
12th
7/31/93
11th
7/31/94
10th
7/31/95
9th
7/31/9
th
7/31/97
7th
7/31/98
6th
7/31/99
5th
7/31/00
4th
7/31/01
3rd
7/31/02
2nd
7/31/03
1st
7/31/04
Car overs
-873 430
873 430
-41 012
-82,928
-93 012
41 012
93 012
112 542 -106 124
32 275 -29 341
109 162 -99 238
-4,996
-296 189 296 189
54 959 -54 959
-36 251 36 251
633 705 -527 132
82 267
18 519
o
102 295
NOL Carryover Available To Current Year
Current Year
NOL Carryover Available To Next Year
o
Charitable Contributions Prior Year Current Year Next Year
Preceding Excess Utilized Or Reclassed to NOL Carry overs
Tax Year Contributions Reclassed to NOL Carryover ReQ.Sec.1.170A-111c)(2 Utilized Carryover
7/31/00 7 711 7 711
"h 7/31/01 2 643 2 643
7/31/02
~ 7/31/03
,. 7/31/04 4,779 4,779 2 704 2 075
Charitable Contribution Carryover To Current Year 4 779 ...........;,........:..<.../.;.;};. "...i.;',. (,.', ............;. ..
Current Year o h...".... .,. c."" '",''' ... 2 704 0
Charitable Contribution Carryover Available To Next Year 2.075
124
Carryover Worksheet
2004
Form 1120
8/01/04
, endin
7/31/05
Employer Identification Number
23-1597186
Name
ROGELE, INC.
Net Ca ital Loss
Prior Year
Current Year
Next Year
Preceding
Tax Year
7/31/00
7/31/01
rd 7/31/02
nd 7/31/03
1st 7/31/04
Net Capital
Gain/(Loss)
Loss Utilized or CIB
(Gains Offset)
Capital Loss
Carryover
Gain Offset
By Carrybackl
Carryovers
Utilized
Capital Loss
Carryover
3 042
6 090
30 451
o
over Available To Current Year
Current Year
o
over Available To Next Year
o
Section 1231 Losses
Preceding 1231
Tax Year Loss
7/31/00
7/31/01
7/31/02
7/31/03
1st 7/31/04
Prior Year
Current Year
Prior Losses
Reca tured
Next Year
Reca tured Unreca tured
General Business Credit
Preceding * Tax> Credits
Tax Year Credits> than Tax
15th 7/31/90
14th 7/31/91
13th 7/31/92
12th 7/31/93
11th 7/31/94
10th 7/31/95
7/31/96
7/31/97 1 362
7/31/98 6 235
7/31/99
7/31/00
7/31/01
7/31/02
nd 7/31/03
1st 7/31/04
General Business Credit Car
Current Year
General Business Credit Carryover Available To Next Year
* T~v ic onll~1 tn I\IPot Rp.nlll~r T~y IA!::.!::. TAnt::ltivp. Minimllm T::lX
o
o
124 ROGELE, INC.
23-1597186
FYE: 7/31/2005
Federal Statements
Statement 1 . Form 1120. Paqe 1. Line 10. Other Income
Description
MISCELLANEOUS
TOTAL
$
$
Amount
5,183
5,183
Statement 2. Form 1120. Paqe 1. Line 19. Charitable Contributions
Description
CURRENT YEAR CONTRIBUTIONS
CARRYOVER FROM PRIOR YEARS
TOTAL CONTRIBUTIONS AVAILABLE
LESS CONTRIBUTIONS DISALLOWED
CURRENT YR DEDUCTION ALLOWED
$
Amount
9,925
1,261
11,186
o
11,186
$
Statement 3. Form 1120. PaQe 1. Line 26. Other Deductions
Description
OFFICE EXPENSE
YARD AND BLDG - MAINT & TOOL
DUES AND SUBSCRIPTIONS
INSURANCE, GENERAL
TELEPHONE
UTILITIES
PROFESSIONAL FEES
DIRECTORS FEES
TOTAL
$
Amount
58,160
86,338
11,148
447,927
11,121
35,368
24,715
6,000
680,777
$
Statement 4 . Form 1120. PaQe 2. Schedule A. Line 5. Other Costs
Description
MAT'L, LABOR, SUBS & RENTAL
EQUIPMENT OPERATING COSTS
TOTAL
Amount
$ 9,158,615
1,572,914
$ 10,731,529
Statement 5. Form 1120. pq 3. Sch K. Question 5. Did Entity Own 50% or More of Corp
Stock?
EIN/SSN
161-34-4493
TOTAL
Name of Entity
JUDITH A. MCCLURE
Percent
Owned
100.000
100.000
1-5
124 ROGELE, INC.
23-1597186
FYE: 7/31/2005
Federal Statements
Statement 6 - Form 1120. Paae 4. Schedule L. line 6 - Other Current Assets
Beginning End
Description of Year of Year
BID DEPOSITS - PLAN DEPOSIT $ 2,425 $ 2,425
PREPAID CORPORATE TAXES 24,000 27,832
COSTS IN EXCESS OF BILLING 150,679 26,309
TOTAL $ 177,104 $ 56,566
Statement 7 - Form 1120. Paae 4. Schedule L. line 14 - Other Assets
Description
CASH SURRENDER VALUE:L/I
TOTAL
Beginning
of Year
$ 16,637
$ 16,637
End
of Year
15,940
15,940
$
$
Statement 8 - Form 1120. Paae 4. Schedule L. line 18 - Other Current liabilities
Beginning End
Description of Year of Year
PAYROLL AND SALES TAX $ 8,287 $ 9,716
EMPLOYEE CHRISTMAS FUND 47,930 48,605
CORPORATE TAXES 22,130 61,341
TOTAL $ 78,347 $ 119,662
Statement 9 - Form 1120. Paae 4. Schedule L. line 21 - Other liabilities
Description
BILLINGS ON UNCOMPLETED JOBS
TOTAL
Beginning
of Year
$ 843,151
$ 843,151
End
of Year
1,542,456
1,542,456
$
$
Statement 10 - Form 1120. Paae 4. Schedule M-1. line 5 - Expenses on Books Not on Return
Description
OFFICER LIFE INS PREMIUMS
TOTAL
$
$
Amount
5,702
5,702
Statement 11 - Form 4626. Line 20. Other Adiustments
Description
CHARITABLE CONTRIBUTIONS
TOTAL
$
$
Amount
-1,443
-1,443
6-11
.
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Department of the Treasury
Internal Revenue Service
A Check If a: Use
1 Consolidated return 8 IRS
(attach Form 851) label.
2 Personal holdi.r19 co. Other.
(attach 5ch. PH)
3 Personal service corp, wise,
(as defined in Regulations print or
rnes~rJc~~~~3(C)- see pe.
E Check applicable boxes: (1) Final return (3)
1 a Gross rcpt./sales 13 , 62 9 , 53 0 I b Less returns & allowances I
2 Cost of goods sold (Schedule A, line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Gross profit. Subtract line 2 from line 1 c .............................................................
4 Dividends (Schedule C, line 19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Interest
...... ............. ... ........... .... ........ ........ ....... -... ....... ....... ... .... .....
6 Gross rents ......................................................................................
7 Gross royalties ...................................................................................
8 Capital gain net income (attach Sch. D (Form 1120)) .................. . . . . . . . . . . . .. . . . .. . . . .. . . . . . . . . .
9 Net gain or (loss) from Form 4797, Part II, line 18 (attach Form 4797)
10 Other income (see page 9 of instructions-attach schedule)
11 Total income. Add lines 3 throu h 10 .... ....
12 Compensation of officers (Schedule E, line 4) ...................................................
13 Salaries and wages (less employment credits) .......................................................
14 Repairs and maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15 Bad debts
16 Rents
...... ................ ,... ... ..... .......... .................., .,.... .......... ..... ... .....
Deductions 17 Taxes and licenses. .. . .. . .. . . . . . . .. . . . . .. .. . .. . . . . . . . . . . . .. . . . . . . . . . . . . . . .. . ... .. . . .. .. . . . . . . . . . . .
18 Interest
19 Charitabl~ ~~~i~ib~ti~'~~ (~~~. ~~g~ '11'~t' i~~i~~~ti~~~ 'f~~ '1' O~k ii~it~ii~~j . : : : : : : : : : : : : : : : : : : : : : $:~: : ~ :
20 Depreciation (attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 754 740
21 Less depreciation claimed on Schedule A and elsewhere on return 21a
22 Depletion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23 Advertising............... . . .. . .. . .. . . . . . . . . . . . . . . .. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . . . . . . .
deductions.) 24 Pension, profit-sharing, etc., plans ..................................................................
25 Employee benefit programs ........................................................................
26 Other deductions (attach schedule) ............................................ ~~~ . . ~~. . ~ . .
27 Total deductions. Add lines 12 through 26 ...................................................... ~
28 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11
29 Less: a Net operating loss (NOL) deduction (see page 13 of instructions) 29a 43 4' 9'3
b S ecial deductions Schedule C. line 20 .................... 29b
30 Taxable Income. Subtract line 29c from line 28
.......................... .,.. ...........,.. ... .......
31 Total tax (Schedule J, line 11) ........................................
a 2002 overpayment 3 033 ...
32 Payments: credited to 2003 .. 32a
b 2003 estimated tax payments 32b 1 0 9 67
c Less 2003 refund applied for 32
on Form 4466 . . . . . . . . . . . . . . . . . . c 32d
e Tax deposited with Form 7004 . . . . . . . . . . . . . . . . . . . . . . . . . . . 32e
f Credit for tax paid on undistributed capital gains (attach Form 2439) 32f
g Credit for Federal tax on fuels (attach Form 4136). See instructions 32
33 Estimated tax penalty (see page 14 of instructions). Check if Form 2220 is attached ...............
34 Tax due. If line 32h is smaller than the total of lines 31 and 33, enter amount owed .......................
35 Overpayment. If line 32h is larger than the total. at lines 31 and 33. enter amount overpaid . . . . . . . . . . . . . . . .
36 Enter amt. of line 35 au want: Credited to 2004 estimated tax ~ 13 832 Refunded ~
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules
and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration
of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
~ I
5i nature of officer Date
Preparer's ....
si nature r
Form 1120
Income
(See
Instructions
for
limitations
on
Tax and
Payments
Sign
Here
Paid
Preparer's
Use Only
u.s. Corporation Income Tax Return
For calendar year 2003 or tax year beginning. . . . . . . . . ~ 19 ~/O.~ I ending .....7 1 ~ ~ I. ~.~
~ Instructions are se arate. See a e 20 for Pa erwork Reduction Act Notice.
Name Number. street, and room or suite no. City or town, state. and ZIP code 8 Employer identification number
23-1597186
ROGELE
INC.
STREET
C Date incorporated
8/04/61
124 P
OMB No. 1545-0123
2003
Address change $
Ie Bal~
D Total assets (see page 8 of instructions)
6 375 932
13 629
10 520
3 108
530
947
583
.......... ........ ......... ........
SEE STMT 1
........... ......... ........ .......... ... ....
~
.... ..... ......... ....... .......... ............ ...... .......... ............ ..... ... .....
Title
Date
Check if
self-employed
Firm's name (or yours
if self-employed), ~
address. and ZIP code
CHUBB AND ASSOCIATES
P.O. BOX 6597
HARRISBURG PA
17112-0597
Phone no.
717-541-1860
I=n,.,n 11?n /.,nn'l\
1c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
1 291
30 451
8 656
9 784
3 158 765
590 485
166 850
14 345
530 296
78 753
5 804
754 740
9 890
30 702
270 468
610 700
3 063 033
95 732
43 493
52 239
168
14 000
13 832
Preparer's SSN or PTIN
P00004835
25-1645828
ErN
124 F
Form 1120 (2003) ROGELE, INC.
23-1597186
PaQe 2
~\SciledUl'i1A:1t~{ Cost of Goods Sold (see oaqe 14 of instructions)
1 Inventory at beginning of year. .. .. " 1
.. " "
2 Purchases ... 2
.. .. .. ..
3 Cost of labor .. .. " 3
.. ..
4 Additional section 263A costs (attach schedule) . 4
..
5 Other costs (attach schedule) .. .. STMT 4 5 10,520,947
... .. .. ..
6 Total. Add lines 1 through 5 .. ... 6 10,520,947
.. .. .. .. .. .. ..
7 Inventory at end of year .. .. .. .. 7
... " .. .. .. .. ..
8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on line 2, page 1 8 10,520 947
.. .. .. .. " ..
9a Check all methods used for valuing closing inventory:
(i) ~ Cost as described in Regulations section 1.471-3
(ii) Lower of cost or market as described in Regulations section 1.471-4
b b~eck ifth~:;:~::e~~~e::no:f~s:b~:::,t~aOc:d:x:~a:;~;~:i~ R~~~i~ti~~~';~~ti~~'1'.471'-2'(~;"""""""""""""""""""'''~'8''''
c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) . . . . . . . . . . . . . . . ., . . . . . . . . . . . . . . .. ~
d If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing
inventory computed under LIFO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
e If property is produced or acquired for resale, do the rules of section 263A apply to the corporation? .............................
f Was there any change in determining Quantities, cost, or valuations between opening and closing inventory? If "Yes,"
attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
~cBiBi71il~ Dividends and Special Deductions (see instructions (a) Dividends
beginning on page 15) received
Dividends from less-than-20%-owned domestic corporations that are subject to the
70% deduction (other than debt-financed stock) ......................................
2 Dividends from 20%-or-more-owned domestic corporations that are subject to the
80% deduction (other than debt-financed stock) ......................................
Dividends on debt-financed stock of domestic and foreign corporations (section 246A) . . . . . . . . . . . . . . .
Dividends on certain preferred stock of less-than-20%-owned public utilities. . . . . . . . . . . . . .
Dividends on certain preferred stock of 20%-or-more-owned public utilities. . . . . . . . . . . . . . .
Dividends from less-than-20%-owned foreign corporations and certain FSCs that are
subject to the 70% deduction .......................................................
7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs that are
subject to the 80% deduction .......................................................
Dividends from wholly owned foreign subsidiaries subject to the 100% deduction (section 245(b))
Total. Add lines 1 through 8. See page 16 of instructions for limitation........ ..... ......
Dividends from domestic corporations received by a small business investment
company operating under the Small Business Investment Act of 1958 ...................
11 Dividends from certain FSCs that are subject to the 100% deduction (section 245(c)(1))
12 Dividends from affiliated group members subject to the 100% deduction (section 243(a)(3)) . . . . . . . . . . .
13 Other dividends from foreign corporations not included on lines 3, 6, 7, 8, or 11 . . . . .. . .. . .
14 Income from controlled foreign corporations under subpart F (attach Form(s) 5471)
15 Foreign dividend gross-up (section 78) ..............................................
16 IC-DISC and former DISC dividends not included on lines 1,2, or 3 (section 246(d)) ......
17 Other dividends
....... .......... ....... ........................... .., .... .........
18 Deduction for dividends paid on certain preferred stock of public utilities .................
19 Total dividends. Add lines 1 through 17. Enter here and on line 4, page 1 ........... ~
20 Totals ecialdeductions.Addlines9,10 1112 and 18. Enter here and online29b a e1........................... ~
!fy;S:cil~4...mill;~y. Compensation of Officers (see instructions for line 12, page 1, on page 10 of instructions)
No
No
(b) %
(e) Special deductions
(a) x (b)
70
3
4
5
6
80
.see
42
48
70
8
9
10
Note: Complete Schedule E onlv if tala I receipts (line 1a plus lines 4 throuc h 10 on paoe 1) are $500,000 or more.
(a) Name of officer (b) Social security number (e) Percent of Perc:;m...~ ~~e~ation
time devoted to (f) Amount of compensation
business fdl Common (e I Preferred
1 DENNIS D MCCLURE 186-38-3941 100.000% % % 101,350
JAMES R MCCLURE, IV 170-54-8224 100.000% 23.658% 01. 157 090
CHRISTOPHER MCCLURE 170-54-2734 100.000% 23.658% % 104 530
JUDITH A. MCCLURE 161-34-4493 50.000% 5.370% % 227.515
% % %
2 Total compensation of officers. . . . . . . .. .. . . . . . . . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . 590,485
3 Compensation of officers claimed on Schedule A and elsewhere on return
. .....,. ...... .............. ... '.......... ...... 590,485
4 Subtract line 3 from line 2. Enter the result here and on line 12, oaoe 1 -... ...... .... .., .... ........ . ....', '.",.... ..... ..
OM
1""'__ ......t",n J....___.
Form 1120 (2003) ROGELE, INC. 23-1597186
i};ScneauJ1fOi~,' Tax Com utation see a e 17 of instructions
1 Check if the corporation is a member of a controlled group (see sections 1561 and 1563) . . . . . . . . . . . . . . . . . . . . . ~
Important: Members of a controlled group, see instructions on page 17.
2a If the box on line 1 is checked, enter the corporation's share of the $50,000, $25,000, and $9,925,000 taxable
income brackets (in that order):
(1) 1$ I (2) 1$ (3) $
b Enter the corporation's share of: (1) Additional 5% tax (not more than $11,750) $
(2) Additional 3% tax (not more than $100,000) $
Income tax. Check if a qualified personal service corp. under section 448(d)(2)(see page 17) . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~
Alternative minimum tax (attach Form 4626) . . . . . . .. . . .. . . . . . . . . . . . .. . . .. . .. . . . . . . . . . . . . . .. . .. .. ... . . . . . . . . . . . . . .
Add lines 3 and 4 . . . .. . . . . . .. . . . . . .. .. . . . . . . . . . .. . . . . . . . . . . . .. . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . . . . . . . . . .
Foreign tax credit (attach Form 1118) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6a
b Possessions tax credit (attach Form 5735) 6b
e Check: 0 ~~~r~nf~~7~~~~lt ... '0' 'Q~~'~r~~;t'(~~: ~~~.~~~~).::::::::::::::::::::::: 6e
d General business credit. Check box(es) and indicate which forms are attached.
o Form 3800 0 Form(s) (specify) ~ ....................................... 6d
e Credit for prior year minimum tax (attach Form 8827) .. . .. . . . . . . . . . . .. . . . . . .. . . . . . . . 6e
Qualified zone academy bond credit (attach Form 8860) ... . . . . . . . . . . . . . . . . . . . . . . . . . 6f
Total credits. Add lines 6a through 6f ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 7 from line 5 .....................................................................................
Personal holding company tax (attach Schedule PH (Form 1120))
Other taxes. Check if from: B Form 4255 B Form 8611.....~. F~r~'8697""""""""""""""
Form 8866 Other (attach schedule) ..................................
11 Totaltax.Addlines8throu h10.Enterhereandonline31 a e1 ......... .....................................
!fS'CI1&ai1I8fJ<fl; Other Information see a e 19 of instructions
1 Check method of accounting: a Ye No 7
b ~ Accrual c 0 Other
(specify) ~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
See page 21 of the instructions and enter the:
Business activity code no. ~ ..~.~ ~ ~ 9~. . . . . . . . . . . . . . . . . . . . . . .
Business activity ~ . ~q~~~c;:~q~. . . . . . . . . . . . . . . . . . . . . .
Product or service ~ CONSTRUCTION
............ ................... ...... ....
3
4
5
6a
f
7
8
9
10
2
a
b
e
3
At the end of the tax year, did the corporation own, directly or indirectly,
50% or more of the voting stock of a domestic corporation? (For rules of
attribution, see section 267(c).) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If "Yes," attach a schedule showing: (a) name and employer identification
number (EIN), (b) percentage owned, and (c) taxable income or (loss) before
NOL and special deductions of such corporation for the tax year ending
with or within your tax year.
Is the corporation a subsidiary in an affiliated group or a
parent-subsidiary controlled group? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If "Yes," enter name and EIN of the parent corp. ~
4
5
At the end of the tax year, did any individual, partnership,
corporation, estate, or trust own, directly or indirectly,
50% or more of the corporation's voting stock? (For rules
of allribution, see section 267(c).) ..................... ~~. . .~.
If "Yes," attach a schedule showing name and identifying
number. (Do not include any information already entered
in 4 above.) Enter percentage owned ~ ~~.~.:.9.9 q . . . . . . . . . . . . .
During this tax year, did the corp. pay dividends (other than stock dividends
and distributions in exchange for stock) in excess of the corporation's
current and accumulated earnings and profits? (See sections 301 and 316.)
If "Yes," file Form 5452, Corporate Report of
Nondividend Distributions.
6
8
10
11
c
At any time during the tax year, did one foreign person own, directly
or indirectly, at least 25% of (a) the total voting power of all
classes of stock of the corporation entitled to vote or (b) the total
value of all classes of stock of the corporation? . . . . . . . . . . . . . . . . .
If "Yes," enter: (a) Percentage owned ~ ...............
and (b) Owner's country ~ ......................
The corporation may have to file Form 5472, Information
Return of a 25% Foreign-Owned U.S. Corporation or a
Foreign Corporation Engaged in a U.S. Trade or Business.
Enter number of Forms 5472 attached ~
8
Check this box if the corporation issued publicly offered
debt instruments with original issue discount .. . . . . . . . . . .. ~ 0
If checked, the corporation may have to file Form 8281, Information
Return for Publicly Offered Original Issue Discount Instruments.
Enter the amount of tax-exempt interest received or
accrued during the tax year ~ $ ......................9..
Enter the number of shareholders at the end of the tax
year (if 75 or fewer) ~ 5
9
If the corporation has an NOL for the tax year and is
electing to forego the carryback period, check here . . . . . . .. ~ 0
If the corporation is filing a consolidated return, the
statement required by Temporary Regulations section 1.1502-21T
(b)(3)(i) or (ii) must be attached or the election will not be valid.
Enter the available NOL carryover from prior tax years
(Do not reduce it by any deduction on line
29a.) ~ $ ............:"! ~ I.~. ~.~.. " .. .. .. .... .. . ....
Are the corporation's total receipts (line 1 a plus lines 4
through 10 on page 1) for the tax year and Its total assets
at the end of the tax year less than $250,OOO?
If "Yes," the corporation is not required to complete
If this is a consolidated return, answer here for the parent Schedules L, M-l, and M-2 on page 4. Instead, enter the
total amount of cash distributions and the book value of
corporation and on Form 851, Affiliations Schedule, for property distributions (other than cash) made during the tax
each subsidiary. year ~ $ . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . ,
Note: If the corporation, at any time during the tax year, had assets or operated a business in a foreign country or U.S. possession, it may be
reauired to attach Schedule N (Form 1120), Foreign Operations of U.S. Corporations, to this return. See Schedule N for details.
I"~ rij
Page 3
8
060
8
060
8
060
o
168
168
ROGELE, INC.
2a
b
3
4
5
6
7
8
9
10a
b
11a
b
12
13a
b
14
15
Cash
. ............ ... ............... ....
Trade notes and accounts receivable
Less allowance for bad debts
...... .....,..
Inventories ..............................
U.S. government obligations. . . . . . . . . . . . . . .
Tax-exempt securities (see instructions) ....
Other current assets STMT 6
..... .................
Loans to shareholders ....................
Mortgage and real estate loans ............
Other investments . . . . . . . . . . . . . . . . . . . . . . . .
Buildings and other depreciable assets .....
Less accumulated depreciation ............
Depletable assets ........................
Less accumulated depletion ....... . . . . . . . .
Land (net of any amortization) .............
Intangible assets (amortizable only) ........
Less accumulated amortization
Other assets (attach sch.) . . .. . ~~ : :1:
Total assets ..... . . . . . . . . . . . . . . . . . .
Liabilities and Shareholders' Equity
Accounts payable ........................
Mortgages, notes. bonds payable in less than 1 year
Other current liabilities. . .. ,. . . ~~. .~.
Loans from shareholders
124 p~
23-1597186
Page 4
16
17
18
19
20
21
22
3 392 421
177 104
16 637
6 375 932
,~'~~-
,""h.>;rl:'l.,y .;., ,.,'._ ,,- . . . '"
""1.:.~"-"-"..; '..J ;c' .' .:_.
935 688
291 297
78 347
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (att. sch.) ....... ~~. .~.
Capital stock: a Preferred stock. . . . . . . . .
b Common stock
.. .......
23 Additional paid-in capital '.................
24 Retained earnings-Appropriated ...............
25 Retained earnings-Unappropriated ........ .
26 Adjustments to SH equity .................
27 Less cost of treasury stock ................
28 Total liabilities and shareholders' e ui . . .
~f~1ScbVd1!i19jM~~;~JS Reconciliation of Income
1 Net income (loss) per books ...............
2 Federal income tax per books . . . . . . . . . . . . . .
3 Excess of capital losses over capital gains
4 Income subject to tax not recorded on books
this year (itemize): ................... .. . . .
.... .... ..... .... .............. ..... .......
5 Expenses recorded on books this year not
deducted on this return (itemize):
a Depreciation $
b glI~~~t?t\~ns'" $
C Travel and' . . . .
entertainment $
STMT 1'6 ...... ....... "5" '5'85 .
.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. (. .. . ..
6 Add lines 1 throu h 5
,:Sch""'ecfufe':M':t2?;, Anal sis of Una ro
1 Balance at beginning of year ... . . . . . . . . . . . .
2 Net income (loss) per books ...............
3 Other increases (itemize): .................
..., ............... ... ............ .... .....
4 Add lines 1, 2, and 3 ....
DM
Tax-exempt int.
............. ...................... ......
8 Deductions on this return not charged
against book income this year (itemize):
a Depreciation... $. . . . . . . . . . . . . . . . . . . . . . . .
b 2~~CI~el~ns.. $. .. .. .. .. .. . .. .. . .. .. .. .
...... .... ..... ..... ..... ....... .........
. ..... ......... ........... ........ .......
Add lines 7 and 8
--95732
6
7
1 980 679 8
1 980 679
Form 1120 (2003)
Form 4626
Alternative Minimum Tax-Corporations
Department of the Treasury
Internal Revenue Service
Name
~ See separate instructions.
~ Attach to the cor oration's tax return.
ROGELE
INC.
Note: See page 1 of the instructions to find out if the corporation is a small corporation exempt
from the AMT under section 55{e).
Taxable income or (loss) before net operating loss deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments and preferences:
Depreciation of post-1986 property ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Amortization of certified pollution control facilities.. . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . .. . . .. . . . . . . . . . . . . . . . . .
Amortization of mining exploration and development costs ........................................................
d Amortization of circulation expenditures (personal holding companies only) .........................................
Adjusted gain or loss .........................................................................................
Long-term contracts ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Merchant marine capital construction funds .....................................................................
Section 833{b) deduction (Blue Cross, Blue Shield, and similar type organizations only) ..............................
Tax shelter farm activities (personal service corporations only) ....................................................
Passive activities (closely held corporations and personal service corporations only) .................................
Loss limitations
1
2
a
c
e
f
9
h
j
k
I
Depletion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
m Tax-exempt interest income from specified private activity bonds ..................................................
Intangible drilling costs . . . . . , . . . . . . . . . . . . . . . . . . . . . . . ' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . .
Other adjustments ........................................:..................................... ~.~. . ~ ~
Preadjustment alternative minimum taxable income (AMTI). Combine lines 1 through 20 .............................
Adjusted current earnings (ACE) adjustment:
ACE from line 10 ofthe worksheet on page 11 of the instructions ....................
Subtract line 3 from line 4a. If line 3 exceeds line 4a, enter the difference as a
negative amount. See examples on page 6 of the instructions .......................
Multiply line 4b by 75% (.75). Enter the result as a positive amount. . . .. . . . ... . . . . . . . .
Enter the excess, if any, of the corporation's total increases in AMTI from prior
year ACE adjustments over its total reductions in AMTI from prior year ACE
adjustments (see page 6 of the instructions). Note: You must enter an amount
on line 4d (even if line 4b is positive) . . .. . . . . . . . . .. . .. . . . . .. .. . .. . . . . . .. . . . . . . . . . . .
n
o
3
4
a
4a
20
b
c
4b
4c
d
4d
e ACE adjustment:
. If line 4b is zero or more, enter the amount from line 4c
· If line 4b is less than zero, enter the smaller of line 4c or line 4d as a negative amount
} .....................
5 Combine lines 3 and 4e. If zero or less, stop here; the corporation does not owe any AMT ............. . . . . . . . . . . . . . . .
6 Alternative tax net operating loss deduction (see page 7 of the
instructions) .................................................................................................
7 Alternative minimum taxable income. Subtract line 6 from line 5. If the corporation held a residual
interest in a REMIC, see page 7 of the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Exemption phase-out (if line 7 is $310,000 or more, skip lines 8a and 8b and enter -0- on line 8c):
a Subtract $150,000 from line 7 (if completing this line for a member of a controlled
group, see page 7 of the instructions).
If zero or less, enter -0- ..,....,.......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8a
b Multiply line 8a by 25% (.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8b
c Exemption. Subtract line 8b from $40,000 (if completing this line for a member of a controlled group,
see page 7 of the instructions). If zero or less, enter-O-.................... ..-.~ .--....................:......
Subtract line 8c from line 7. If zero or less, enter -0- .. . .. . . . . . . . . . . . . .. . . .. . . . . . . . . . . . .. . . . . . .. .. . . . . . . . . . . . . . . . . .
Multiply line 9 by 20% (.20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alternative minimum tax foreign tax credit (see page 7 of the instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tentative minimum tax. Subtract line 11 from line 10
............................. ....... ............ ... ..........
Regular tax liability before all credits except the foreign tax credit and possessions tax credit. . . . . . . . . . . . . . . . . . . . . . . . . .
Alternative minimum tax. Subtract line 13 from line 12. If zero or less, enter -0-. Enter here and on
Form 1120 Schedule J line 4, or the a ro riate line of the cor oration's income tax return
For Paperwork Reduction Act Notice, see page 10 of the instructions.
9
10
11
12
13
14
124 PI
OMS No. 1545-0175
2003
Employer identification number
23-1597186
1
95 732
2a
2b
2c
2d
2e
-77 890
-840
3 518
20 520
4e
57
5
20 577
6
7
20 577
0
0
8c 40 000
9 0
10 0
11
12 0
13 8 060
14 0
Form 4626 (2003)
124 Pg
Department of the Treasury
Internal Revenue Service
Capital Gains and Losses
~ Attach to Form 1120, 1120-A, 1120-F, 1120-FSC, 1120-H,
1120-IC-DISC, 1120-L, 1120-N Dr 1120-PC, 1120-POL, 1120-REIT,
1120-RIC 1120-SF 990-C or certain Forms 990-T.
OMB No. 1545-0123
SCHEDULE D
(Form 1120)
2003
Name
Employer identification number
ROGELE, INC.
~Imilf. Sh rt T
23-1597186
:t,,{ ~a ~ 0 - erm aDt a ams an osses- sse s e ne ear or ess
(a) Description of property (b) Date acquired (c) Date sold (d) Sales price (e) Cost or other (f) Gain or (loss)
(Example: 100 shares of Z Co.) (mo., day, yr.) (mo.. day, yr.) (see instructions) basis (see (Subtract (e) from (d))
1
2 Short-term capital gain from installment sales from Form 6252, line 26 or 37 .... ...... .... ...... ... ... .,. ...... ....... 2
3 Short-term gain or (loss) from like-kind exchanges from Form 8824 .... . . .. . . .. . . . . . . . . . . . . . . .. . .. .. . .. . . . . . . . . . . . . . . 3
4 Unused capital loss carryover (attach computation) ....... ........... ......... ............... .., ...... ...... ....... 4 1
5 Net short-term caoital aain or (loss). Combine lines 1 throuah 4 ......... ................ ... .............. _.. ...... o. 5
'.
~$~,\a :'-)0 ono- erm aOta ams an osses- sse s e ore an ne ear
6
7 Enter gain from Form 4797, column (g), line 7 or 9 ....... . .. . .. . . .. . . . . .. . .. . ... . .. . . . .. .. . . .. . . . . . . 7
. ... ." " '.. .. .
8 Long-term capital gain from installment sales from Form 6252, line 26 or 37 8 30 451
... ....... ........ ...... ..,. ... ...........
9 Long-term gain or (loss) from like-kind exchanges from Form 8824 9
.... .................. .... ... ....... ... -.. ........
10 Capital gain distributions (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 0
11 Net lona-term caoital aain or (loss). Combine lines 6 throuah 10 . . .. . . . . . 11 30.451
C 't I G "
dL
A
t H Id 0 Y
L
~lt~lu& L
T
C "t I G .
dL
A
t H Id M
Th 0 Y
lilift1nll Summa of Parts I and II
12 Enter excess of net short-term capital gain (line 5) over net long-term capitalloss (line 11) .. . . . . . . . .. . . . . . . . . . . . . . . . . . . . 12
13 Net capital gain. Enter excess of net long-term capital gain (line 11) over net short-term capital
loss (line 5) . . . . . . . . . .. . . . . . . . . . . . . . . . . .. . .. . .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . .. . . . . . . . . . . 13
14 Add lines 12 and 13. Enter here and on Form 1120, page 1, line 8, or the proper line on other
returns
.... ....... .......... ... .... ...... ...... ......... ......................... ......... ... ... ........ ... ....
Note: If losses exceed alns see Ca itallosses In the instructions on a e 2.
30 451
For Paperwork Reduction Act Notice, see the Instructions for Forms 1120 and 1120-A.
Schedule D (Form 1120) 2003
124 Pg
Form 4562
Depreciation and Amortization
OMS No. 1545-0172
Department of the Treasury
Internal Revenue Service
Name(s) shown on return
ROGELE INC.
(Including Information on Listed Property)
~ See se arate instructions. ~ Attach to our tax return.
2003
~~a~~~~n~o. 67
Identifying number
23-1597186
Dollar limitation for tax
1
2
3
4
5
100 000
1
2
3
4
5
Maximum amount. See page 2 of the instructions for a higher limit for certain businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total cost of section 179 property placed in service (see page 2 ofthe instructions) .............. . .. . . . . .. . .. . . . . . . . .
Threshold cost of section 179 property before reduction in limitation.. . . .. . . . . . . . . .. . .. . . . . . . . .. . .. . .. . . . . . . . . . . . . . .
Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0-
400 000
c Elected cost
6
7 Listed property. Enter the amount from line 29 ... . .. . . . . . . . . .. . . . . . .. . . . . . . . . . .. . . . . . . . . 7
8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 ................................. 8
9 Tentative deduction. Enter the smaller of line 5 or line 8 .......................................................... 9
10 Carryover of disallowed deduction from line 13 of your 2002 Form 4562 ............................................ 10
11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 11
12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 12
13 Ca over of disallowed deduction to 2004. Add lines 9 and 10, less line 12 ~ 13
Note: Do not use Part II or Part III below for listed property. Instead, use Part V.
!e1'Mi1l!i S ecial De reciation Allowance and Other De reciation Do not include listed
14 Special depreciation allowance for qualified prop. (other than listed prop.) placed in service during the tax year (see pg. 3 of the instr.)
15 Property subject to section 168(f)(1) election (see page 4 of the instructions) .... ... .. ........ . .. . ..... ....... .......
16 Other de reciation includin ACRS see a e 4 of the instructions
::3fRa~m~ MACRS Depreciation (Do not include listed propertv.) (See paqe 4 of the instructions.)
Section A
17 MACRS deductions for assets placed in service in tax years beginning before 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18 If you are electing under section 168(i)(4) to group any assets placed in service during the tax
ear into one or more eneral asset accounts check here
Section B-Assets Placed in Service Durin 2003 Tax Year Usin the General De
1 080
(a) Classification of property
(b) Month and
year placed in
sarvice
(c) Basis for depreciation (d) Recovery
(business/i~vestm~nt use period (e) Convention
(f) Method
(9) Depreciation deduction
d
1 219 085
5.0
HY
200DB
243 820
19a
b
h
S/L
S/L
S/L
S/L
S/L
65
25
MM
MM
6 742 MM
7 725 MM
2003 Tax Year Usin the Alternative De
20a Class life S/L
b 12- ear 12 rs. S/L
c 40- ear 40 rs. MM S/L
j,er~I'V,t, Summa see a e 6 of the instructions
21 Listed property. Enter amount from line 28 ...................................................................... 21
22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21.
Enter here and on the appropriate lines of your return. Partnerships and S corporations-see instr. 22
23 For assets shown above and placed in service during the current year,
enter the ortion of the basis attributable to section 263A costs 23
For Paperwork Reduction Act Notice, see separate instructions.
3/29/04
6/01/04
16 982
ROGELE, INC. 23-1597186
Form 4562 (2003) Pa~e 2
]I~. Listed Property (Include automobiles, certain other vehicles, cellular telephones, certain computers, and
property used for entertainment, recreation, or amusement.)
Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only
24a 24b columns la) throuah Ic) of Section A all of Section B and Section C If aoolicable
reclation and Other Information Caution: See a e 7 of the instructions for limits for
Yes 24b
00 ~ ~ ~
Type of prop. Date placed in Cost or other Basis for depreciation
(list vehicles service basis (businesslinvestment
first use onl
25 Special depreciation allowance for qualified listed property placed in service during the tax
ear and used more than 50% in a ualified business use see a e 6 of the instructions
(f)
Recovery
period
(g)
Methodl
Convention
(h)
Depreciation
deduction
25
26 ProDem used more than 50% in a Qualified business use (see oaoe 6 of the instructions):
SEE S'l ATEMENT 12
OJ, 344,000 344,000 16,982
0;,
27 Pro e used 50% or less in a ualified business use see a e 6 of the instructions:
S/L-
28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 ...................... 28
29 Add amounts in column i line 26. Enter here and on line 7, a e 1 . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section B-Information on Use of Vehicles
Complete this section for vehicles used by a sole proprietor, partner, or other "more than 5% owner," or related person.
16
S/L-
If vou provided vehicles to vour emplovees, first answer the questions in Section C to see if ou meet an exception to completing this section for those vehicles.
30 Total business/investment miles driven during (a) (b) (C) (d) (e) (f)
the year (do not include commuting miles- Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicle 5 Vehicle 6
see page 2 ofthe instructions) ,.. . . . . . . . . . . . . . . . . . .
31 Total commuting miles driven during the year. . . . . . . .
32 Total other personal (noncom muting) miles driven .. .
33 Total miles driven during the year.
Add lines 30 through 32 . . . . . . . . . . . . . . . . . . . . . . . . . . .
34 Was the vehicle available for personal Yes No Yes No Yes No Yes No Yes No Yes No
use during off-duty hours? . . . . . . . . . . . . . . . . . . . . . . . . .
35 Was the vehicle used primarily by a
more than 5% owner or related person? .... ... .....
36 Is another vehicle available for Dersonal use?
Section C-Questions for Employers Who Provide Vehicles for Use by Their Employees
Answer these questions to determine if you meet an exception to completing Section 8 for vehicles used by employees who
are not more than 5% owners or related ersons see a e 8 of the instructions.
Yes No
37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by your employees? .........
38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees?
See page 8 of the instructions for vehicles used by corporate officers, directors, or 1 % or more owners ...............................
39 Do you treat all use of vehicles by employees as personal use? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40 Do you provide more than five vehicles to your employees, obtain information from your employees about
the use of the vehicles, and retain the information received? .....................................................................
41 Do you meet the requirements concerning qualified automobile demonstration use? (See page 9 of the instructions.) ...................
Note: If our answer to 37 38, 39 40 or 41 is ,rYeS," do not com lete Section 8 for the covered vehicles.
;~ear.f.t,v.illi Amortization
42 Amortization of costs that be
(b)
Date amortization
begins
(e)
Amortizable
amount
(d)
Code
section
(e)
Amortization
period or
ercenta e
(f)
Amortization for
this year
(a)
Description of costs
a e 9 of the instructions:
43 Amortization of costs that began before your 2003 tax year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44 Total. Add amounts in column . See a e 9 of the instructions for where to re art
43
44
o
Form 4562 (2003)
Form 4797
124 Pg
OMS No, 1545-0184
Department of the Treasury
Internal Revenue Service (99)
Name(s) shown on return
Sales of Business Property
(Also Involuntary Conversions and Recapture Amounts
Under Sections 179 and 280F(b)(2})
~ Attach to your tax return, ~ See separate instructions.
2003
27
Attachment
Sequence No.
Identifying number
23-1597186
Enter the gross proceeds from sales or exchanges reported to you for 2003 on Form(s) 1099-8 or 1099-5 (or substitute I I
statement) that you are including on line 2, 10, or 20 (see instructions) ......,"',.,.,"',.,.,.""""..""""." 1
'1;~~fll~? Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other
Than Casualt or Theft - Most Pro ert Held More Than 1 Year See instructions.
(a) Description of property
(b) Date acquired
(mo" day, yr.)
(e) Depreciation
allowed or
allowable since
ac uisition
(f) Cost or other
basis, plus
improvements and
ex ense of sale
3 Gain, if any, from Form 4684, line 39 ......................,.,.....,..........,........ 3
4 Section 1231 gain from installment sales from Form 6252, line 26 or 37 ................... 4
5 Section 1231 gain or (loss) from like-kind exchanges from Form 8824 ..... . . . . . . . . . . . . . . . . 5
6 Gain, if any, from line 32, from other than casualty or theft ............................... 6
7 Combine lines 2 through 6 in columns (g) and (h). Enter the gain or (loss) here and on the
appropriate line as follows: ...........................................................
Partnerships (except electing large partnerships) and S corporations. Report the gain or
(loss) follOWing the instructions for Form 1065, Schedule K, line 6, or Form 1120S, Schedule K, line 5. Skip
lines 8, 9, 11, and 12 below.
All others. If line 7, column (g), is zero or a loss, enter that amount on line 11 below and skip
lines 8, 9, and 12. If line 7, column (g), is a gain and you did not have any prior year section 1231
losses, or they were recaptured in an earlier year, enter the gain or (loss) in each column as a
long-term capital gain or (loss) on Schedule 0 and skip lines 8,9, 11, and 12 below.
8 Nonrecaptured net section 1231 losses from prior years (see instructions) ..... . . . .. . . . . . . . 8
9 Subtract line 8 from line 7. If line 9, column (g), is zero or less, enter -0- in column (g). If line 9,
column (g) is zero, enter the gain from line 7, column (g), on line 12 below. If line 9, column (g), is
more than zero, enter the amount from line 8, column (g), on line 12 below and include the gain or
10 s 'n e c 0 u n i 9 as a I n - rm . I ai r os on ched Ie ee instructions 9
.Corporations (other than S corporations) should not complete column (h). Partnerships and S corporations must complete column (h). All others must complete
column (h) only If line 7, column (g), Is a gain and the amount, If any, on line 8, column (g), does not equal or exceed the gain on line 7, column (g). Include in
column (h) all gains and losses from column (g) from sales, exchanges, or conversions (inClUding installment payments received) after May 5, 2003. However,
do not include ain attributable to unreca tured section 1250 ain.
5~ir.fUItYf
10 Ordina
(c) Date sold
(mo., day, yr.)
(d) Gross
sales price
88 OLDS SEDAN
2 11/21/90 1/31/04
1990 NI SON PATH INDER
2/08/02 1/31/04
6 929
1 272
11 Loss, if any, from line 7, column (g) . . .. . . . . . . . .. .. . . . . . . . . . . . . . . . .. . . . . .. .. . . .. . .. . . . . .
12 Gain, if any, from line 7, column (g), or amount from line 8, column (g) if applicable .........
13 Gain, if any, from line 31 .............................................................
14 Net gain or (loss) from Form 4684, lines 31 and 38a . . . . . . .. . . . . . . . . . . . . . . .. . . . .. . . .. . . . .
15 Ordinary gain from installment sales from Form 6252, line 25 or 36 .......................
16 Ordinary gain or (loss) from like-kind exchanges from Form 8824 .. . . . . " . .. .. . . .. . .. . . . . .
17 Recapture of seolion 179 expense deduction for partners and S corporation shareholders for
property dispositions from 2002-2003 fiscal year partnerships and S corporations (see instructions)
18 Combine lines 10 through 17. Enter the gain or (loss) here and on the appropriate line as follows:
a For all except individual returns. Enter the gain or (loss) from line 18 on the return being filed.-
b For individual returns:
(1) If the loss on line 11 includes a loss from Form 4684, line 35, column (b)(ii), enter that part
of the loss here. Enter the part of the loss from income-producing property on Schedule A
(Form 1040), line 27, and the part of the loss from property used as an employee on Schedule
A (Form 1040), line 22. Identify as from "Form 4797, line 18b(1)." See instructions. . . . . .. . . . . . . . . , 18b 1
(2) Redetermine the gain or (loss) on line 18 excluding the loss, if any, on line 18b(1). Enter here
and on Form 1040 line 14 1 B bC2
For Paperwork Reduction Act Notice, see page 7 of the instructions.
DAA
(g) Gain or (loss)
for entire year,
Subtract (f) from the
sum of d and e
6 929
3 180
-1 908
11 -1 90
12
13 10
14
15
16
Form 4797 (2003)
PAGE 1 OF 1
Form 4797 (2003) ROGELE, INC. 23 -15 9 718 6
:lmfrrilJl; Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254, and 1255
124 Pg
PaQe 2
19 (a) Description of section 1245, 1250, 1252, 1254, or 1255 property: (b) Date acquired (c) Date sold
{mo.. dav. vr.\ {mo. dav. vr.\
A BACKHOE SALE-E12.E58.E150.E272 VARIOUS 1/31/04
8
c
D
These columns relate to the proDerties on lines 19A -19D. ~ ProDertv A Property B ProDertv C ProDertv 0
20 Gross sales price (Note: See line 1 before completing.) 20 38.000
...... . 126
21 Cost or other basis plus expense of sale .................. . . . 21 74
22 Depreciation (or depletion) allowed or allowable. . . . . . . . . . . . . . . 22 46.690
23 Adjusted basis. Subtract line 22 from line 21 . . . . . . . . . . . . . . . . . . 23 27.436
24 Total aain. Subtract line 23 from line 20 . . . . . . . . . . . . . . . . . . . . . . 24 10.564
25 Ifsectlon 1245 property:
a Depreciation allowed or allowable from line 22 . . . . . . . . . . . . . . . . 25a 46.690
b Enter the smaller of line 24 or 25a .......................... 25b 10.564
26 If section 1250 property: If straight line depreciation was used. enter
-0- on line 26g, except for a corporation subject to section 291.
a Additional depreciation after 1975 (see instructions) .... .. . . . . . 26a
b Applicable percentage multiplied by the smaller of line 24
or line 26a (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26b
c Subtract line 26a from line 24. If residential rental property
or line 24 is not more than line 26a, skip lines 26d and 26e 26c
. ....
d Additional depreciation after 1969 and before 1976 . ... . .. . . . . . 26d
e Enter the smaller of line 26c or 26d . .... ... ...... .... ... .... 26e
f Section 291 amount (corporations only) . . . . . . . . . . . . . . . . . . . . . . 26f
a Add lines 26b 26e and 26f 26a
27 If section 1252 property: Skip this section if you did not
dispose of farmland or if this form is being completed for a
partnership (other than an electing large partnership).
a Soil, water, and land clearing expenses . . . . . . . . . . . . . . . . . . . . . . 27a
b Line 27a multiplied by applicable percentage (see instructions) 27b
c Enter the smaller of line 24 or 27b 27c
28 Ifsection 1254 property:
a Intangible drilling and development costs, expenditures for
development of mines and other natural deposits, and
mining exploration costs (see instructions) 28a
. . . . . . . . . . . . . . . . . . .
b Enter the smaller of line 24 or 28a . . 28b
29 If section 1255 property:
a Applicable percentage of payments excluded from income
under section 126 (see instructions) ...... . . . . . . . . . . . . . . . . . . . 29a
b Enter the smaller of line 24 or 29a (see instructions) 29b
Summa
oin to line 30.
30
Total gains for all properties. Add property columns A through D, line 24
30
10 564
31 Add property columns A through D, lines 25b, 26g, 27c, 28b, and 29b.
Enter here and on line 13
32 Subtract line 31 from line 30. Enter the portion from casualty or theft on Form 4684, line 33. Enter the portion from other than casualty
or theft on Form 4797, line 6, column , end if a licable, column h ...................................................... 32
J3'lrt;(1y',J: Recapture Amounts Under Sections 179 and 280F(b)(2) When Business Use Drops to 50% or Less
See instructions.
.. ......,.. .......... .... ... ...... .... ..... ......... ................... ......... .....
31
10 564
o
(a) Section
179
(b) Section
280F b 2
33 Section 179 expense deduction or depreciation allowable in prior years. . . .. . .. . . . . . . . .. . .. 33
34 Recomputed depreciation. See instructions ............................................ 34
35 Reca ture amount. Subtract line 34 from line 33. See the instructions for where to re art . . . 35
124 Pg .
Form 6252
Installment Sale Income
OMB No. 1545-0228
Department of the Treasury
Internal Revenue Service
Name(s) shown on return
~ Attach to your tax return.
~ Use a separate form for each sale or other disposition of
. ro e on the installment method.
2003
~~a~~~~n~o. 79
Identifying number
ROGELE INC. 23-1597186
~a ~:~::::~:;~::~t~~y,' y~~' '(" 'i/Oi/90"'b" D~t~'~~id (~~~ih,'d~y: y~~'r)~' '," .7/3'i'/03(..............."....,......,......
3 Was the property sold to a related party (see instructions) after May 14, 198o? If "No," skip line 4 . . . . . . , , . . . , . . . . , . . , . . . . 0 Yes I!I No
4 Was the property you sold to a related party a marketable security? If ''Yes,'' complete Part Ill. If "No,"
complete Part III for the year ofsale and the 2 years after the year of sale, . , . . . . . . . , . , , . . , . . . . . . , . . . . , . . , , . . . . . , 0 Yes
!~2'J11-' Gross Profit and Contract Price. Com lete this art for the ear of sale ani .
5 Selling price including mortgages and other debts. Do not include interest whether stated or unstated ...,....,..,...,.
6 Mortgages, debts, and other liabilities the buyer assumed or took
the property subject to (see instructions) ...,....,.,..,............................ 6
Subtract line 6 from line 5 ...,.......,....,..,.,.,...............,............... 7
Cost or other basis of property sold. . . . . . . . . . . . . . . , . . . . . . . . , . . . . . . . . . . . . . . . . . , . . . , 8
Depreciation allowed or allowable ........ . . . , . . , . . . , . . . . , . . . . . . . . . . , . . . . , , . . . . , . . 9
Adjusted basis. Subtract line 9 from line 8 . . . . , . . .. .. . , .. . .. . . .. . . . , . . .. . .. . . . . . . . . 10
Commissions and other expenses of sale . .. . . . . .. .. . .. .. .. . . . . . . . .. . .. . .. . . . , . . . . 11
Income recapture from Form 4797, Part III (see instructions) ,.........,............. 12
Add lines 10, 11, and 12 .,.......................,........,.,...,.,........,..,....."...........,............
Subtract line 13 from line 5. If zero or less, do not complete the rest of this form (see instructions) . , . . . . . . . . . , . . . . . . , . .
If the property described on line 1 above was your main home, enter the amount of your excluded
gain (see instructions). Otherwise, enter -0- ,...,.."...,...,...,..,.,.....,.".,.,..."""."............., 15
16 Gross profil Subtract line 15 from line 14 ......,.....,.........,.......,..,....,....,..,.,.,........"........, 16
17 Subtract line 13 from line 6. If zero or less, enter -0- . , . .. , . .. , .. .. , . .. .. . . .. . , , . . . . .. , . .. .. . .. , . .. .. . .. . .. . . . . . . . . 17
18 Contract rice. Add line 7 and line 17 18
r~ii'J. Installment Sale Income. Complete this part for the year of sale and any year you receive a payment or
have certain debts ou must treat as a a ment on installment obli ations.
Gross profit percentage. Divide line 16 by line 18. For years after the year of sale, see instructions. , . . . . . , . . . . , . . . . . . . .
If this is the year ofsale, enter the amountfrom line 17. Otherwise, enter -0- .......,...,........,.,...,...,.........
Payments received during year (see instructions). Do not include interest, whether stated or unstated ..'...,.........,
Add lines 20 and 21 .....,.............................................,.......................,..".,.......,
Payments received in prior years (see instructions). Do not include
interest, whether stated or unstated ,...............,.....................,....... 23 1 0 0 0 0
24 Installment sale income. Multiply line 22 by line 19 . , . , . . . . . . . . . . . . . . . . . . . , . . . . , . , . , . . . . . . . . , . . , , . , . , , , . . . . , . . . . , 24
25 Enter the part of line 24 that is ordinary income under the recapture rules (see instructions) 25
26 Subtract line 25 from line 24. Enter here and on Schedule 0 or Form 4797 see instructions..... .....,...., ..,. . " .. , . 26 30 451
~em!m' Related Party Installment Sale Income. Do not complete if YOU received the final payment this tax year.
27 Name, address, and taxpayer identifying number of related party ..............,............,..."..."......".....,.,......"..,...."..........
7
8
9
10
11
12
13
14
15
~
13
14
19
20
21
22
23
60.9017
o
000
000
19
20
21
22
50
50
30 451
28' . . Did 'th~' ~~I~'t~d'P~rty' ~~~~Ii ~~'di~p;~~ ~f ih~' P~~P~rtY' ("~~'~~~d di~p~~iti~~';)' d~~i~'g thi~' i~~ y~~'r?' : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : . '0 'y~~' . , . . '0 ' N'~
29 If the answer to question 28 is "Yes," complete lines 30 through 37 below unless one of the following conditions is
mel Check the box that applies.
a D The second disposition was more than 2 years after the first disposition (other than dispositions
of marketable securities). If this box is checked, enter the date of disposition (month, day, year) ....,..............,.. ~ I
b ~ The first disposition was a sale or exchange of stock to the issuing corporation.
c The second disposition was an involuntary conversion and the threat of conversion occurred after the first disposition.
d The second disposition occurred after the death of the original seller or buyer.
e It can be established to the satisfaction of the Internal Revenue Service that tax avoidance was not a principal purpose
for either of the dispositions. If this box is checked, attach an explanation (see instructions).
30 Selling price of property sold by related party .......,.,..,........,................,...,.,............,.,. . . , . . . . 30
31 Enter contract price from line 18 for year of first sale. . . . . . . . . , . . . . . . . . . , . , . . . . , . . . . . . . , . . . . . . . . . . , , , . . , . . . . . . . . . . . 31
32 Enter the smaller of line 30 or line 31 , . . . . . . , . . . . , . , . . . . , . , . . . . . . . . . . . , . . . . , . . . . , , . . , . . . , . . . . . . . . , . , . . . . . , . . . . . . 32
33 Total payments received by the end of your 2003 tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . , , , . .. . . . . . . . . . . 33
34 Subtract line 33 from line 32. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . , . , , . . . . , . . . . . . , . . . 34
35 Multiply line 34 by the gross profit percentage on line 19 for year of first sale ...,...."...,..,......,..,.....,..,..,. 35
36 Enter the part of line 35 that is ordinary income under recapture rules (see instructions) ...,......."..,...,..,....... 36
Form 8827
Credit for Prior Year Minimum Tax-Corporations
~ Attach to the corporation's tax return.
I"'" I ~ ,..
OMS No. 1545-1257
2003
Department of the Treasury
Internal Revenue Service
Name I Employer identification number
ROGELE, INC. 23-1597186
1 Alternative minimum tax (AMT) for 2002. Enter the amount from line 15 of the 2002 Form 4626 ....................... 1 10 , 282
2 Minimum tax credit carryforward from 2002. Enter the amount from line 9 of the 2002 Form 8827 ........... . .. . . .. . . . . 2 13 ,315
3 Enter the total of any 2002 unallowed non conventional source fuel credit and 2002 unallowed
qualified electric vehicle credit (see instructions) .................................................................
4 Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Enter the corporation's 2003 regular income tax liability minus allowable tax credits (see
instructions) .................................................................................................
6 Is the corporation a "small corporation" exempt from the AMT for 2003 (see instructions)?
. Yes. Enter 25% of the excess of line 5 over $25,000. If line 5 is $25,000 or less, enter -0-.
. No. Complete Form 4626 for 2003 & enter the tentative minimum tax from line 12. ................................
7 Subtract line 6 from line 5. If zero or less, enter -0- ........... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Minimum tax credit. Enter the smaller of line 4 or line 7 here and on Form 1120, Schedule J,
line 6e or the appropriate line of the corporation's income tax return. If the corporation had a
post-1986 ownership change or has pre-acquisition excess credits, see instructions .................................
9 Minimum tax credit carryforward to 2004. Subtract line 8 from line 4. Keep a record of this
amount to carry forward and use in future vears . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OM
3
4 23,597
5 8,060
6 0
7 8,060
8 8,060
9 15,537
Form 8827 (2003)
Form 1120
Name
124 Pg
NOL and Contribution Carryover Worksheet - Regular Tax
2003,
8/01/03
, endin
7/31/04
Employer Identification Number
ROGELE INC.
Preceding
Taxable Year
15th
7/31/8
14th
7/31/90
13th
7/31/91
12th
7/31/92 -936 487
11th -7,342
7/31/93 -7 342
10th -3,250
7/31/94 -3 250
9th -12,675
7/31/95 -12 675
th
7/31/9 125 907
7th
7/31/97 9 080
6th
7/31/98 41 567
5th -1,391
7/31/9 -369 090
4th
7/31/00 13 912
3rd -53,811
7/31/01 -473 582
2nd
7/31/02 662 774
1st
7/31/0 122 493
23-1597186
Prior Year
Current Year
Income Offset By
NOL Carryback!
Carryover
NOL Utilized
Next Year
Car overs
936 487
7 342
3 250
12 675
-38 287
369 090
-13 912
430 089
43 493
43 493
o
-662 774
NOL Carryover Available To Current Year
-122 493
Current Year
o
95 732
43 493
o
NOL Carryover Available To Next Year
o
Charitable Contributions
Charitable Contribution Car over To Current Year
Current Year 1 261
Charitable Contribution Car over Available To Next Year
Preceding
Tax Year
7/31/9
7/31/00
7/31/01
7/31/02
7/31/03
Excess
Contributions
12 946
8 883
2 643
5 411
7 432
Prior Year
Utilized Or
Reclassed to NOL
12 946
8 883
2 643
5 411
7 432
Car over
~~.!~
Next Year
1 261
1 261
Form 1120
Name
124 Pg 1
NOL and Contribution Carryover Worksheet - AMT
8/01/03
2003
, endin
7/31/04
Employer Identification Number
ROGELE INC.
23-1597186
Preceding
Taxable Year
15th
7/31/8
14th
7/31/90
13th
7/31/91
12th
7/31/92
11th
7/31/93
10th
7/31/94
9th
7/31/95
th
7/31/9
7th
7/31/97
6th
7/31/98
5th
7/31/9
4th
7/31/00
3rd
7/31/01
2nd
7/31/02
1st
7/31/03
Prior Year
Current Year
Income Offset By
NOL Carrybackl
Carryover
NOL Utilized
Next Year
NOL Utilized
Income Offset Car overs
-873 430
873 430
-41 012
-82,928
-93 012
41 012
93 012
112 542 -106 124
32 275 -29 341
109 162 -99 238
-4,996
-296 189 296 189
54 959 -54 959
-36 251 36 251
633 705 -527 132
82 267
o
18 519
NOL Carryover Available To Current Year
Current Year
NOL Carryover Available To Next Year
o
Charitable Contributions
Excess
Contributions
Prior Year
Utilized Or
Reclassed to NOL Car
Car over
Preceding
Tax Year
7/31/9
7/31/00
7/31/01
7/31/02
7/31/03
Next Year
7 711
2 643
7 711
2 643
o
Year Ending: July 3 I, 2004
23-1597186
ROGELE, INC.
1025 S. 21 ST STREET
HARRISBURG, PA 17105-1757
Electing out of the 500/0 Bonus Depreciation Allowance
for All Eligible Depreciable Property
The taxpayer elects out of the 50% first-year bonus depreciation allowance under IRC Section
168(k) for all eligible asset classes of depreciable property acquired after May 5, 2003. This
election applies to all qualified 50% bonus depreciation property placed in service during the tax
year.
Year Ending: July 31, 2004
23-1597186
ROGELE, INC.
1025 S. 21ST STREET
HARRlSBURG, PA 17105-1757
Electing out of the 30% Bonus Depreciation Allowance
for All Eligible Depreciable Property
The taxpayer elects out of the 30% first-year bonus depreciation allowance under IRC Section
168(k) for all eligible asset classes of depreciable property acquired after September 10, 2001
and before May 6, 2003. This election applies to all qualified 30% bonus depreciation property
placed in service during the tax year.
124 ROGELE, INC.
23-1597186
FYE: 7/31/2004
Federal Statements
Page 1
Statement 1 - Form 1120. Paae 1. Line 10 - Other Income
Description
MISCELLANEOUS
TOTAL
$
$
Amount
9,784
9,784
Statement 2 - Form 1120. Paae 1. Line 19 - Charitable Contributions
Description
CURRENT YEAR CONTRIBUTIONS
CARRYOVER FROM PRIOR YEARS
TOTAL CONTRIBUTIONS AVAILABLE
LESS CONTRIBUTIONS DISALLOWED
CURRENT YR DEDUCTION ALLOWED
$
Amount
7,065
o
7,065
1,261
5,804
$
Statement 3 - Form 1120. Paae 1 , Line 26 - Other Deductions
Description
OFFICE EXPENSE
YARD AND BLDG - MAINT & TOOL
DUES AND SUBSCRIPTIONS
INSURANCE, GENERAL
TELEPHONE
UTILITIES
PROFESSIONAL FEES
DIRECTORS FEES
TOTAL
$
$
Amount
52,050
97,164
6,448
380,808
11,099
34,789
22,342
6,000
610,700
Statement 4 - Form 1120. Paae 2. Schedule A. Line 5 - Other Costs
Description
MAT'L, LABOR, SUBS & RENTAL
EQUIPMENT OPERATING COSTS
TOTAL
Amount
$ 8,942,139
1,578,808
$ 10,520,947
Description
FORM 8697
TOTJl.L
Form 1120. Paae 3. Schedule J. Line 10 - Other Taxes
Amount
168
168
$
$
124 ROGELE, INC.
23-1597186
FYE: 7/31/2004
Federal Statements
Page 2
Statement 5 - Form 1120, Pa 3, Sch K, Question 5 - Did Entity Own 50% or More of Corp
Stock?
EIN/SSN
161-34-4493
TOTAL
Name of Entity
JUDITH A. MCCLURE
Percent
Owned
100.000
100.000
Statement 6 - Form 1120, Pane 4, Schedule L, Line 6 - Other Current Assets
Beginning End
Description of Year of Year
BID DEPOSITS - PLAN DEPOSIT $ 2,425 $ 2,425
PREPAID CORPORATE TAXES 15,915 24,000
COSTS IN EXCESS OF BILLING 58,070 150,679
TOTAL $ 76,410 $ 177,104
Statement 7 - Form 1120, Paae 4, Schedule L, Line 14 - Other Assets
Description
CASH SURRENDER VALUE:L/I
TOTAL
Beginning
of Year
$ 17,217
$ 17,217
$
$
End
of Year
16,637
16,637
Statement 8 - Form 1120, Pane 4, Schedule L, Line 18 - Other Current Liabilities
Description
PAYROLL AND SALES TAX
EMPLOYEE CHRISTMAS FUND
CORPORATE TAXES
DEFERRED GAIN, LAND SALE
TOTAL
Beginning
of Year
$ 8,480
48,079
19,257
30,451
$ 106,267
$
End
of Year
8,287
47,930
22,130
$
78,347
Statement 9 - Form 1120, Pane 4, Schedule L, Line 21 - Other Liabilities
Description
BILLINGS ON UNCOMPLETED JOBS
TOTAL
Beginning
of Year
$ 541,491
$ 541,491
$
$
End
of Year
843,151
843,151
5-9
124 ROGELE, INC.
23-1597186
FYE: 7/31/2004
Federal Statements
Page 3
Statement 10 - Form 1120. Paae 4. Schedule M-1. Line 5 - Expenses on Books Not on Return
Description
OFFICER LIFE INS PREMIUMS
TOTAL
$
$
Amount
5,585
5,585
Statement 11 - Form 4626. Line 20. Other Adiustments
Description
CHARITABLE CONTRIBUTIONS
TOTAL
$
$
Amount
3,518
3,518
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Form 8697
124 P91.
Interest Computation Under the Look-Back
Method for Completed Long-Term Contracts
OMS No. 1545-1031
(Rev. November 2002)
Department of the Treasury
Internal Revenue Service
~ See se arate instructions.
8/01/03 7/31/04
Attachment
Se uence No. 97
For the filinQ year beQinninQ , and endino . See Daoe 2 of the instructions.
Name A Identifying number
ROGELE, INC. 23-1597186
Fill In Your Number, street, and apt., room, or suite no. If a P.O. box, see page 3 of the instructions. B Check applicable box to show type of taxpayer:
Address Only If X Corporalion B S corporation
You Are Fllln~ Thl
Form Se&ara ely City or town, state, and ZIP code Individual Partnership
and Not Ith Your
Tax Return Estate or trusl
C If you were an owner of an interest in a pass-through entity (such as a partnership or an S corporation) that holds one or more long-term contracts to which this
interest computation relates, enter the name and employer identification number of the entity. Attach a schedule if there is more than one such entity.
Name of entity I Employer identification number
f~\
Regular Method
Taxable inc. or loss for the prior years shown on tax
return (or as previously adjusted) before net operating
loss or capital loss carrybacks (other than carrybacks
that must be taken into account to properly compute
interest under section 460) (see page 3 of the instr.).
If you were required to file Form 8697 for an earlier
year, enter adjusted taxable income for the prior
years from line 3, Form 8697, for the most recent
filing year that affects the prior years . . . . . . . . . . . . . .
2 Adjustment to income to reflect the difference
between: (a) the amount of income required to be
allocated for post-February 1986 contracts completed
or adjusted during the tax year based on the actual
contract price & costs, and (b) the amount of income
reported for such contracts based on estimated
contract price and costs. See page 3 of the instr. and
attach a schedule listing each separate contract,
unless you were an owner of an interest in a pass-
through entity reporting this amount from Schedule
K-1 or a similar statement
3 Adjusted taxable income for look-back purposes.
Combine lines 1 and 2
4 Income tax liability on line 3 amt. using tax rates in
effect for the prior years (see page 3 of the instr.)
5 Income tax liability shown on return (or as previously
adjusted) for the prior years (see pg. 3 of the instr.).
If you were required to file Form 8697 for an earlier
year, enter the amount required to be reported on line
4, Form 8697, for the most recent filing year that
affects the prior years .........................
6 Increase or decrease in tax for the prior years on
which interest is due (or is to be refunded). Subtract
line 5 from line 4.
7 Interest due on increase, If any, shown on line 6 (see
page 3 of the instructions)
Date of each prior year to which interest
com utation relates:
(a)
Year ended
7/31/01
(b)
Year ended
7/31/02
(c)
Year ended
7/31/03
-816 290
-271 301
-36
-102 048
17 898
115
-918 338
-253 403
79
13 315
15
13 315
10
5
168
168
8 Interest to be refunded on decrease, If any, shown on
line 6 (see page 3 of the instructions) .............
9 Net amount of Interest to be refunded to you. If line 8, coiumn (d), exceeds line 7, column (d), enler the excess. File
Form 8697 separately; do not attach it to your tax return (see page 3 of the instructions) .......................
10 Net amount of Interest you owe. If line 7, column (d), exceeds line 8, column (d), enter the excess. Attach
Form 8697 to our tax return. See a e 4 of the instructions for where to include this amount on our relurn
DAA For Privac Act and Paperwork Reduction Act Notice, see page 5 of the instructions.
168
Form 8697 (Rev. 11-2002)
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Supporting Documentation from July 31,2003
FORM 8697
Attachment
Filing Year ending: 7/31/04
Rogele, Inc.
EIN # 23-1597186
124 Pg 1
Form 1120
U.S. Corporation Income Tax Return
For calendar year 2002 or tax year beginning. . . . . . . . . ~ 19 ~.I.9.~ ,ending.... .7./ ~:t I. 9.~
~ Instructions are seDarate. See Daoe 20 for Panerwork Reduction Act Notice.
Name Number, street, & room or suite no. City or town, state, and ZIP code 8 Employer identification number
ROGELE. INC. 23-1597186
OMB No. 1545.0123
Department of the Treasury
Internal Revenue Service
2002
A Check If a: Use
1 Consolidated return 8 IRS
(attach Form 851) I b I
2 Person,1 holding co. a e.
(attach Sch. PH) Other-
3 PersolJ.al serviQll corp, wise,
(as defmed in Regulatlon~ print or
rnes1rJct\~~;~{C)- see I I type. HARRI SBURG FA 1 71 05 -1 757 D Total assets (see page 8 of instructions)
E Check applicable boxes: (1) I I Initial return 12\ TI Finalreturn (3) II Namechanoe 14\ 11 Address change $ 5 158.360
1a Grossrcpt.lsales I 13,878,219Ib Lessrtn.&allowances I Ic Bal~ 1c 13 878.219
2 Cost of goods sold (Schedule A, line 8) .. .. .. .. .. .. .. . . . .. . . .. .. .. .. .. .. .. . .. . . .. . .. .. . .. .. . .. . .. . .. . 2 10 737. 841
3 Gross profit. Subtract line 2 from line 1 c ........................... ................................. 3 3 . 140 . 378
4 Dividends (Schedule C, line 19) . . . . .. .. . . .. . . . .. . . .. . . . . . . . . . . . . . . . .. .. . . .. . . . . . . .. .. . .. . . . . . . . . . . . . 4
5 Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Gross rents ...................................................................................... 6
7 Gross royalties ................................................................................... 7
8 Capital gain net income (attach Sch. D (Form 1120)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
9 Net gain or (loss) from Form 4797, Part II, line 18 (attach Form 4797) ....................... . . . . . .. . . . . . 9
10 Other income (see page 9 of instructions-attach schedule) . . .... ........... ............... ~~ . .. . . 10
11 Total income. Add lines 3 throuoh 10 ~ 11
12 Compensation of officers (Schedule E, line 4) ........................................................ 12
13 Salaries and wages (less employment credits) ........................................................ 13
14 Repairs and maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
15 Bad debts. . .. . .. . .. . . .. . .. . . . . .. .. . . . . .. .. .. . . .. . . . . . . . . . . .. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
16 Rents............................................................................................ 16
Deductions 17 Taxes and licenses.. . . .. . .. . . . . . . . ... .. . ... .. . . . . . . . . .. . . . . . .. . . ... . .. . .. . .. . . .. . . .. . .. .. . . . . . . . . . 17
18 Interest. . . . . . . . . . .. .. .. . .. .. . . .... . . .. .. .. . .. ... . .. . . . .. . . . . .. .. . . .... .. . .. . . . . .. .. . . ... . .. . . . . . . 18
(See 19 Charitable contributions (see page 11 of instructions for 10% limitation) .... '1" . . . i .. .. . . . .. ST.M'r . . . .. ~
Instructions 20 Depreciation (attach Form 4562) . .. .. . . . . .. .. .. .. . . . . . . . . . . . . . . . . . . ... I 20 I 644 . 318 ~'c:g'iJ
21 Less depreciation claimed on Schedule A and elsewhere on return ....... 21a 21b
limitations 22 Depletion... .. .. . .. . .. . .. . . . . . .. . .. . . . .. . . . . .. . . . . . . . . .. . . . . . . . . .. .. . . . . . .. .. .. . . . . . .. . . . .. . .. . . . 22
23 Advertising........ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
deductions.) 24 Pension, profit-sharing, etc., plans .................................................................. 24
25 Employee benefit programs .......................... . . . . . . . . . . .. . . .. . .. . . . .. .. . . . . .. . .. . . . . . . . . . . . 25
26 Other deductions (attach schedule) .................................................... ~ ~ . . . . . 26
27 Total deductions. Add In. 12 through 26 ........................................................ ~ 27
28 Taxable income before net operating loss deduction & special deductions. SUTbtract ,une 27 from In. 11 ~8
29 Less: a Net operating loss (NOL) deduction (see page 13 of instr.) ..... 29a I 158 . 554 ..
b Special deductions {Schedule Cline 20\ .. . . . . . . . . . . . . . . . . . .. I 29b I 29c
30 Taxable Income. Subtract line 29c from line 28 ...................................................... 30
31 Total tax (Schedule J,line 11) ................................ '~i'i;{~:~i~' .... ..~ ~31
a 2001 overpayment "\;:/'>.,.
32 Payments: credited to 2002 .. 32a r:< .'. .
b 2002 estimated tax payments 32b 13 , 315 ""\
c ~~S~tri:,o~:iLu~~ ~::~i~~ .f~~ . . . . . : : 32c d Sal . 32d 13 . 315
e Tax deposited with Form 7004 . . .. .. .. .. . .. . .. . .. . . . . . . .. . . . . . . .. . . . . . 32e hi:.1
f Credit for tax paid on undistributed capital gains (attach Form 2439) 32f'::.
9 Credit for Federal tax on fuels (attach Form 4136). See instructions 320 32h
33 Estimated tax penalty (see page 14 of instructions). Check if Form 2220 is attached ............. ~ U 3:3
34 Tax due. If line 32h is smaller than the total of lines 31 and 33, enter amount owed ...... . . . . . . . . . . . . . . . . . 3,~
35 Overpaymenllf line 32h is larger than the total of lines 31 and 33, enter amount overpaid ......... . . . . . . . 35
36 Enter am!. of line 35 vou want: Credited to 2003 est. tax ~ 3 . 033 Refunded ~ 36
Under penalties of perjury, I declare that I have examined this r.eturn, including accompanying schedul~s I May the IRS discuss this rtn. with the preparer 1
and statements, and to the best of my knowledge and behef, It IS true, correct, and complete. Declaration . 'c!" -;::;..
of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. shown below (see instr.l? IXI Yes I I No
~ Sianature of officer I Date ~ Title
Preparer's .... T Date T Check jf r
sianature , I I self-employed I
Income
for
on
Tax and
Payments
Sign
Here
Paid
Preparer's
Use Only
1025 S. 21ST STREET
C Date incorporated
8/04/61
1.964
6 090
6 783
4 960
3 160.175
587.445
194.160
8.848
532.425
92.893
o
644 318
1.160
31.779
273-260
671.394
3.037.682
122.493
158.554
-36.061
10 282
13.315
3.033
Preparer's SSN or PTIN
Firm's name (or yours CHUBB AND ASSOCIATES
if self-employed), ~ F. O. BOX 6597
address, and ZIP code BARRI SBURG . FA
P00004835
25-1645828
EIN
17112-0597
Phone no.
717-541-1860
Form 1120 (2002)
.124Pg1
Form 8697
Interest Computation Under the Look-Back
Method for Completed Long-Term Contracts
(Rev. November 2002)
OMS No. 1545-1031
Attachment
Se uence No. 97
For the fHin
Name
ROGELE
INC.
Number, street, and apt.. room, or suite no. If a P.O. box, see page 3 of the instructions.
B
Fill In Your
Address Only If
You Are Filing Thl
Form Separalely
and Not With Your
Tax Return
City or town, state, and ZIP code
e.
A
Check applicable box to show type of taxpayer:
Corporation 8 5 corporation
Individual Partnership
Estate or trust
C If you were an owner of an interest in a pass-through entity (such as a partnership or an 5 corporation) that holds one or more long-term contracts to which this
interest computation relates, enter the name and employer identification number of the entity. Attach a schedule if there is more than one such entity.
Name of entity I Employer identification number
i~;D"""...?i1~1j.Jfu:
,Z~,aIilJ; ~~~;
Regular Method
1 Taxable inc. or loss for the prior years shown on tax
return (or as previously adjusted) before net operating
loss or capitelloss carrybacks (other than carrybacks
that must be taken into account to properly compute
interest under section 460) (see page 3 of the instr.).
If you were required to file Form 8697 for an earlier
year, enter adjusted taxable income for the prior
years from line 3, Form 8697, for the most recent
filing year that affects the prior years . . . . . . . . . . . . . .
2 Adjustment to income to reflect the difference
between: (a) the amount of income required to be
allocated for post-February 1986 contracts completed
or adjusted during the tax year based on the actual
contract price & costs, and (b) the amount of income
reported for such contracts based on estimated
contract price and costs. See page 3 of the instr. and
attach a schedule listing each separate contract,
unless you were an owner of an interest in a pass-
through entity reporting this amount from Schedule
K-1 or a similar statement
3 Adjusted taxable income for look-back purposes.
Combine lines 1 and 2
4 Income tax liability on line 3 amt. using tax rates in
effect for the prior years (see page 3 of the instr.)
5 Income tax liability shown on return (or as previously
adjusted) for the prior years (see pg. 3 of the instr.).
If you were required to file Form 8697 for an earlier
year, enter the amount required to be reported on line
4, Form 8697, for the most recent filing year that
affects the prior years .........................
6 Increase or decrease in tax for the prior years on
which interest is due (or is to be refunded). Subtract
line 5 from line 4.
Date of each prior year to which interest
com utation relates:
(a)
Year ended
7 31 01
(b)
Year ended
7 31 02
(c)
Year ended
-578 303
-112 175
-237 987
-159 126
-816 290
-271 301
13 315
13 315
7 Interest due on increase, if any, shown on line 6 (see
page 3 of the instructions) . . . . . . . . . . . . . . . . . . . . . .
8 Interest to be refunded on decrease, if any, shown on
line 6 (see page 3 of the instructions) .............
9 Net amount of Interest to be refunded to you. If line 8, column (d), exceeds line 7, column (d), enter the excess. File
Form 8697 separately; do not attach it to your tax return (see page 3 of the instructions) ..................
10 Net amount of interest you owe. If line 7, column (d), exceeds line 8, column (d), enter the excess. Attach
Form 8697 to our tax return. See a e 4 of the instructions for where to include this amount on our return .
Form 8697 (Rev 11-2002)
'.
Form 1120
Department of the Treasury
Intemal Revenue Service
2002
A Check If a:
1 Consolidated retum B
(attach Form 851)
2 PersoneJ holding co.
(attach Sch. PH)
3 Personal SefVi!;;e corp,
(as defined In RegulatIons
sec. 1.441-3(c)- see
instructions D Total assets (see page 8 of instructions)
E Check applicable boxes: Address change $ 5 15 8 3 60
1a Grossrcpt.lsales I 13,878,219Ib Lessrtn.&allowances I Ie Bal~ 1c 13 878 219
2 Cost of goods sold (Schedule A, line 8) . . . . . . .. . . .. . .. .. .. . .. .. .. . . . . .. . .. .. .. . .. .. .. .. . . . .. .. . .. .. .. 2 10 737 841
3 Gross profit. Subtract line 2 from line 1 c ............................................................. 3 3 14 0 37 8
4 Dividends (Schedule C, line 19) .. . . .. .. . . . . .. . . . . .. . .. . .. .. . . . . . . .. . .. . .. . .. .. . . . .. .. .. . .. . . . . . . .. . . 4
5 Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Gross rents ...................................................................................... 6
7 Gross royalties ................................................................................... 7
8 Capital gain net income (attach Sch. D (Form 1120)) . . . . . .. .. . . .. .. . . . .. . . .. .. .. .. . .. . .. .. .. . . .. . . . . . . 8
9 Net gain or (loss) from Form 4797, Part II, line 18 (attach Form 4797) ................................... 9
10 Other income (see page 9 of instructions-attach schedule) ................................ .~.~..;1:. 10
11 Total income. Add lines 3 throu h 1 0 ~ 11
12 Compensation of officers (Schedule E, line 4) ........................................................ 12
13 Salaries and wages (less employment credits) ........................................................ 13
14 Repairs and maintenance.. . . . . .., . . ... . .. . .. . . . ... . . . . .. . . .. . . . . . . . . .. . . . ... . . . . . . .. .. . .. . . .. . .. . . 14
15 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
16 Rents............................................................................................ 16
Deductions 17 Taxes and licenses. . . . .. .. . . . . . . . . . . .. . . . . ... . . . . . . .. . .. . .. . .. . . . . . . . . .. . .. . . . .. .. .. .. . .. . . . . . . . . . 17
18 Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
(See 19 Charitable contributions (see page 11 of instructions for 10% limitation) .................... .S.~..2. 19
Instructions 20 Depreciation (attach Form 4562) .... . .... . ..... . . . . .. .. . .. ... . .. . . . . . . 20 644 318"
21 Less depreciation claimed on Schedule A and elsewhere on return 21 a 21 b
limitations 22 Depletion... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
23 Advertising.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
deductions.) 24 Pension, profit-sharing, etc., plans .................................................................. 24
25 Employee benefit programs .. . .. .. . . .. .. .. .. .. . .. .. . .. . . .. . . .. .. . . . . .. . . . . .. . . .. . . .. .. . . . .. . . . .. . . . 25
26 Other deductions (attach schedule) .................................................... .~.~.. ~. 26
27 Total deductions. Add In. 12 through 26 ........................................................ ~ 27
28 Taxable income before net operating loss deduction & special deductions. Subtract line 27 from In. 11 28
29 Less: a Net operating loss (NOL) deduction (see page 13 of instr.) ..... 29a 158 55411;1
b S eelal deductions Schedule Cline 20 ..... ....... .... .. 29b 29c
30 Taxable income. Subtract line 2ge from line 28 ...................................................... 30
31 Total tax (Schedule J, line 11) ........................:............................................ 31
a 2001 overpayment
32 Payments: credited to 2002 .. 32a
b 2002 estimated tax payments 32b 13
c Less 2002 refund applied for . . 32 d B I
on Form 4466 .. . . . . . . . . . . . . . . . . c a
e Tax deposited with Form 7004 . . .. .. .. . . .. . . .. . . . . . . .. . . . . . .. . . .. . . . . .
f Credit for tax paid on undistributed capital gains (attach Form 2439)
g Credit for Federal tax on fuels (attach Form 4136). See instructions 32
33 Estimated tax penalty (see page 14 of instructions). Check if Form 2220 is attached .............
34 Tax due. If line 32h is smaller than the total of lines 31 and 33, enter amount owed .. . . . . . . . . . . . . . . . . . . . . .
35 Overpayment. If line 32h is larger than the total of lines 31 and 33, enter amount overpaid
36 Enter amI. of line 35 ou want: Credited to 2003 est. tax ~ 3 03'3..............
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules
and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration
of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
~ I
Si nature of officer Date
Pre parer's ~
si nature r
Income
for
on
Tax and
Payments
Sign
Here
Paid
Preparer's
Use Only
OM
U.S. Corporation Income Tax Return
For calendar year 2002 or tax year beginning. . . . . . . . . ~ 191.1.9.~ ,ending .... .7./ ~ ~ I. O~
~ Instructions are se arate, See a e 20 for Pa erwork Reduction Act Notice.
Name Number, street, & room or suite no. City or town, state, and ZIP code B Employer identification number
23-1597186
OMS No. 1545-0123
ROGELE
INC.
STREET
C Date incorporated
8 04 61
1 964
6 090
6 783
4 960
3 160 175
587 445
194 160
8 848
532 425
92 893
0
644 318
1 160
31 779
273 260
671 394
3 037 682
122 493
158 554
-36 061
10 282
13 315
3 033
Title
Date
Pre parer's SSN or PTIN
P00004835
EIN 25-1645828
Check if
self-employed
Firm's name (or yours CHUBB AND ASSOCIATES
If self-employed), ~ P.O. BOX 6597
address, and ZIP code HARRISBURG PA
17112-0597
Phone no.
717-541-1860
Form 1120 (2002)
'r Form 1120 (2002) ROGELE, INC.
"i;:~Scli'eaule'fA\~ Cost of Goods Sold see a e 14 of instructions
1 Inventory at beginning of year. . . . . . .. . .. . oo . . . . . .. . oo .. . .. . . oo . .. . . oo . oo . . . . . . . .. . . . .. . . . . . . . . .. . . oo . . . . . . . oo . .
2 Purchases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Additional section 263A costs (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Other costs (attach schedule) . . .. . . .. . .. . .. . . oo . ... . . . . . . oo . . . . oo . oo . . . . . . . . . . . oo . . . OO' oo .'. . . ... . . .~.~.. ~.
6 Total. Add lines 1 through 5 ....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on line 2, page 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9a Check all methods used for valuing closing inventory:
(i) ~ Cost as described in Regulations section 1.471-3
(ii) Lower of cost or market as described in Regulations section 1.471-4
(iii) Other (Specify method used and attach explanation.) ~ .....oo.......oo.....oo..oo......oo..oo.......oo.oo....oo................ Boo .. .
b Check if there was a writedown ofsubnormal goods as described in Regulations section 1.471-2(c) ~
c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~
d If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing
inventory computed under LIFO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9d
e If property is produced or acquired for resale, do the rules of section 263A apply to the corporation? ..........................
f Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If ''Yes,''
attach ex lanation
~~~ Dividends and Special Deductions (see instructions
be innin on a e 15
Dividends from less-than-20%-owned domestic corporations that are subject to the
70% deduction (other than debt-financed stock) .......oo.........oo..oo..............
2 Dividends from 20%-or-more-owned domestic corporations that are subject to the
80% deduction (other than debt-financed stock) ......................................
Dividends on debt-financed stock of domestic & foreign corporations (section 246A)
Dividends on certain preferred stock of less-than-20%-owned public utilities. . . . . . . . . . . . . .
Dividends on certain preferred stock of 20%-or-more-owned public utilities. . . . . . . . . . . . . . .
Dividends from less-than-20%-owned foreign corporations and certain FSCs that
are subject to the 70% deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs that
are subject to the 80% deduction. . . . . oo . . .. . . . oo . . . . . . oo . . . . oo .. . oo oo oo . .. . . . .. . . . . .
Dividends from wholly owned foreign subsidiaries subject to the 100% deduction (section 245(b))
Total. Add lines 1 through 8. See page 16 of instructions for limitation.. .. . . . ... . . . . . . . . .
Dividends from domestic corporations received by a small business investment
company operating under the Small Business Investment Act of 1958 ...................
11 Dividends from certain FSCs that are subject to the 100% deduction (section 245(c)(1)) .............
12 Dividends from affiliated group members subject to the 100% deduction (section 243(a)(3)) . . . . . . . . . . .
13 Other dividends from foreign corporations not included on lines 3, 6, 7, 8, or 11 . .. .. . .. . . .
14 Income from controlled foreign corporations under subpart F (alt. Form(s) 5471) .........
15 Foreign dividend gross-up (section 78) ..............................................
16 IC-DISC and former DISC dividends not included on lines 1, 2, or 3 (section 246(d))
17 Other dividends .............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18 Deduction for dividends paid on certain preferred stock of public utilities .................
19 Total dividends. Add lines 1 through 17. Enter here and on line 4, page 1 ........... ~
20 Total s eclal deductions. Add lines 9, 10 11 12 and 18. Enter here and on line 29b, a e 1 ~
:.;~~Q!l.~gi!!i'~):;it,\ Compensation of Officers (see instructions for line 12, page 1, on page 10 of instructions)
23-1597186
Page 2
1
2
3
4
5
6
7
8
10 737 841
10 737 841
10 737 841
No
No
(a) Dividends
received
(b) %
(c) Special deductions
(a) x (b)
70
80
3
4
5
6
.see
42
48
70
8
9
10
Note: Comnlete Schedule E on Iv if total receints lline 1 a nlus lines 4 throuoh 10 on oaoe 11 are $500,000 or more.
(c) Percent of Percent of corporation
(a) Name of officer (b) Social security number timc:,,~~~~t.:'~ to (f) Amount of compensation
Idl Common leI Preferred
1 DENNIS D MCCLURE 186-38-3941 100'* '* % 93,795
JAMES R MCCLURE. IV 170-54-8224 100'* 23.658oA '* 163,310
CHRISTOPHER MCCLURE 170-54-2734 100'* 23.658,* '* 102,280
JUDITH A. MCCLURE 161-34-4493 50'* 5.370oA OA 228,060
'* '* '*
2 Total compensation of officers ............ . .. . .. oo . .. . oo . . . . .. . . . . . . . . . . . . . . .. . . . . . . . oo . . oo oo . . . . . . . . . . . . . oo oo . . . . 587 445
3 Compensation of officers claimed on Schedule A and elsewhere on return .................................... . . . . . . . . .
4 Subtract line 3 from line 2. Enter the result here and on line 12. naoe 1 ........................... ................... .. 587.445
DM
Form 1120 (2002)
.. Form 1120 (2002) ROGELE, INC.
lfil}Scliidiiiero. Tax Com utation see a e 17 of instructions
1 Check if the corporation is a member of a controlled group (see sections 1561 and 1563) ................... ..
Important: Members of a controlled group, see instructions on page 17.
2a If the box on line 1 is checked, enter the corporation's share of the $50,000, $25,000, and $9,925,000 taxable
income brackets (in that order):
(1) 1$
b Enter the corporation's share of:
(2) 1$ (3) $
(1) Additional 5% tax (not more than $11,750) $
(2) Additional 3% tax (not more than $100,OOO) $
Income tax. Check if a qualified personal service corporation under section 448(d)(2} (see page 17) ...... ... . ~
Alternative minimum tax (attach Form 4626) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Add lines 3 and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign tax credit (attach Form 1118) .. . . .. . .. . . . .. . . .. . .. .. . . .. . .. . . . . . . .. . . . . . . . 68
Possessions tax credit (attach Form 5735) .... O' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6b
c Check: 0 Nonconventional source fuel credit QEV credit (attach Form 8834) . . . . 6c
d General business credit. Check box(es) and indicate which forms are attached. III
o Form 3800 0 Form(s) (specify) ~ 6d
e Credittor prior year minimum tax (attach Form 8827) . . . . .. . . . . .. . . .. .. .. . . .. . . .. . . . 6e
Qualified zone academy bond credit (attach Form 8860) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6f
Total credits. Add lines 6a through 6f .... .. . .. .. . .. .. . .. . .. . . . .. .. . .. . . . .. . . . . .. . . . .. .. . . . .. . .. . . .. .. . .. .. . .. ..
Subtract line 7 from line 5 .....................................................................................
Personal holding company tax (atatach Schedule PH (FaOrm 1120)) ....... 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other taxes. Check if from: Form 4255 Form 8611 Form 8697
Form 8866 Other (attach schedule) ..................................
11 Total tax. Add lines 8 throu h 10. Enter here and on line 31 a e 1
IScn"dUlitiKII Other Information see a e 19 of instructions
1 Check method of accounting: a es No 7
b ~ Accrual C 0 Other
(specify) ~ ..................................................
See page 21 of the instructions and enter the:
a Businessactivity code no. ~ .. .~~~ ~99. . ... . . . .. ...... . . . .. ..
b Business activity ~ ... q9~~~<;:*q~. . . . . . . . . . . . . . . . . . . . . .
c Productorservice~ . q9~~.'~.~t;1q*;r;9~..................
3 At the end of the tax year, did the corporation own, directly or indirectly,
50% or more of the voting stock of a domestic corporation? (For rules of
attribution, see section 267(c).) ...................................
If .Yes," attach a schedule showing: (a) name and employer identification
number (EIN), (b) percentage owned, and (c) taxable income or (loss) before
NOL and special deductions of such corporation for the tax year ending
with or within your tax year.
Is the corporation a subsidiary In an affiliated group or a
parent-subsidiary controlled group? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 ::.:~:~: :~~::~ ~::;::;~h;P' q II ::
corporation, estate, or trust own, directly or indirectly, ~Ii.
50% or more of the corporation's voting stock? (For rules :1111
of attribution, see section 267(c).) .. . . . . . . . . . . . . . . . . . . . ~~. . ?
If "Yes,. attach a schedule showing name and identifying
number. (Do not include any Information already entered
in 4 above.) Enter percentage owned ~ .. ~ 9.9. : .99 qq. . . . . . . . . . .
During this tax year, did the corp. pay dividends (other than stock dividends
and distributions in exchange for stock) in excess of the corporation's
current & accumuiated eamings and profits? (See sections 301 and 316.)
If "Yes," file Form 5452, Corporate Report of
Nondividend Distributions.
3
4
5
6a
b
f
7
8
9
10
2
4
6
23-1597186
~
1
8
9
III
10
11
c
At any time during the tax year, did one foreign person own, directly
or Indirectly, at least 25% of (a) the total voting power of all
classes of stock of the corporation entiUed to vote or (b) the total
value of all classes of stock of the corporation~' .. . . . . . . . . . . . . . . .
If "Yes,. enter: (a) Percentage owned ~. . . . . . . . . . . . . . . . . . .
and (b) Owner's country ~ ..............................
The corporation may have to file Form 5472, Information
Retum of a 25% Foreign-Owned U.S. Corporation or a
Foreign Corporation Engaged in a U.S. Trade or Business.
Enter number of Forms 5472 attached ~
8
Check this box if the corporation Issued publicly offered
debt instruments with original issue discount . . . . . . . . . . . .. ~ 0
If checked, the corporation may have to file Form 8281, Information
Retum for Publicly Offered Original Issue Discount Instruments.
Enter the amount of tax-exempt interest received or
accrued during the tax year ~ $.. . . . . . . . . . . . . .. . . . . . 9. .
Enter the number of shareholders at the end of the tax
year (if 75 or fewer) ~ ...?.............................
If the corporation has an NOL for the tax year and is electing
to forego the carryback period, check here
If the corporation is filing a consolidated return, the
statement required by Regulations section 1.1502-21 (b)(3)(i) or (Ii)
must be attached or the election will not be valid.
9
12
Enter the available NOL carryover from prior tax years
(Do not reduce it by any deduction on line
29a.)~ $ ......... ..:l;.~~ I. ??~.. ........... .. ......
Are the corporation's total receipts (line 1a plus lines 4
through 10 on page 1) for the tax year and its total assets
at the end of the tax year less than $250,000?
13
If 'Yes," the corporation is not required to complete
If this is a consolidated retum, answer here for the parent Schedules L, M-1, and M-2 on page 4. Instead, enter the
total amount of cash distributions and the book value of
corporation and on Form 851, Affiliations Schedule, for property distributions (other than cash) made during the tax
each subsidiary. yr. ~ $.......................................
Note: If the corporation, at any time during the tax year, had assets or operated a business in a foreign country or U.S. possession, it may be
required to attach Schedule N (Form 1120), Foreign Operations of U.S. Coroorations, to this return. See Schedule N for details.
OM
Page 3
10
10
o
282
282
10 282
10 282
~D
Form 1120 (2002)
23-1597186
Page 4
Form 1120 (2002) ROGELE, INC.
Note: The co oration is not re uired to com lete Schedules L, M-1
~JScneau~I!i'l Balance Sheets er Books
Assets
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (all. sch.) ....... ~~. .~.
Capital stock: a Preferred stock. . . . . . . . .
b Common stock
. . . . . . . . .
23 Additional paid-in capital ..................
24 Retained earnings-Appropriated ...............
25 Retained earnings-Unappropriated .........
26 Adjustments to SH equity .................
27 Less cost of treasury stock ................
28 Total liabilities and shareholders' e ui .....
J'sCfi8dUimM~1. Reconciliation of Income
1 Net income (loss) per books ...............
2 Federal income tax per books . . . . . . . . . . . . . .
3 Excess of capital losses over capital gains
4 Income subject to tax not recorded on books
this year (itemize): ...... . . . . . . . .. .. .. .....
Cash ...................................
2a Trade notes and accounts receivable
Less allowance for bad debts . . . . . . . . . . . . . .
Inventories ..............................
U.S. government obligations. . . . . . . . . . . . . . .
Tax-exempt securities (see instructions)
Other current assets.......... ~~. .~.
Loans to shareholders ....................
Mortgage and real estate loans ............
Other investments . . . . . . . . . . . . . . . . . . . . . . . .
Buildings and other depreciable assets .....
Less accumulated depreciation ............
Depletable assets ........................
Less accumulated depletion ...............
Land (net of any amortization) .............
Intangible assets (amortizable only) ........
Less accumulated amortization ............
Other assets (attach sch.) . . . . . ~~ . .7.
Total assets. .. . .. . . . . . . . ....... .
liabilities and Shareholders' Equity
Accounts payable ........................
Mortgages, notes, bonds payable in less than 1 year
Other current liabilities. . . . . . . . ~~ . .1iI.
Loans from shareholders
1
b
3
4
5
6
7
8
9
108
b
118
b
12
138
b
14
15
16
17
18
19
20
21
22
. ....................... ..... ............
5 Expenses recorded on books this year not
deducted on this return (itemize):
8 Depreciation $
b Ch' ... ........................
c fr~~~~!~~~~'" $.. .. . .. .. .. . .. .7. l.~ .~ ~ ..
entertainment .. $.. . . . . . . . . . . . . . . . . . . . . . . -
~~. .~.9.................. .!?1.9.9.€?
6 Add lines 1 throu h 5
~;~SC'ieclulEnM!!2. Anal sis of Una ro
1 Balance at beginning of year . . . . . . . . . . . . . . .
2 Net income (loss) per books ...............
3 Other increases (itemize): .................
. ....... ...... ............... ...... ......
. .... ... ... ... ............. ..... ... ......
4 Add lines 1, 2 and 3 .......... ....,......
OM
76 410
1 891 793
56
122 493
1 891 793
1 891 793
Form 1120 (2002)
Form 4626
Alternative Minimum Tax-Corporations
OMB No. 1545-0175
Department of the Treasury
Internal Revenue Service
Name
~ See separate Instructions.
~ Attach to the cor oration's tax return.
2002
122 493
ROGELE
INC.
1 Taxable income or (loss) before net operating loss deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Adjustments and preferences:
a Depreciation of post-1986 property ....... .. . . . . .. . .. . . .. . . . .. . . . . .. .. .. .. . .. .. . .. 2a
b Amortization of certified pollution control facilities. . .. .. . .. . .. . . .. .. . . . .. . . . . .. . .. .. . 2b
c Amortization of mining exploration and development costs .......................... 2c
d Amortization of circulation expenditures (personal holding companies only) ........... 2d
e Adjusted gain or loss ...........................................................
f Long-term contracts ......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
g Installment sales ....................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
h Merchant marine capital construction funds .......................................
Section 833(b} deduction (Blue Cross, Blue Shield, and similar type organizations
only) ..........................................................................
j Tax shelter farm activities (personal service corporations only) ......................
k Passive activities (closely held corporations and personal service corporations
only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2k
Loss limitations ................................................................ 21
m Depletion...................................................................... 2m
n Tax-exempt interest income from specified private activity bonds .................... 2n
o Intangible drilling costs .. .. . .. . . . . . .. .. . . .. . . .. . . .. .. .. . . . . . .. . .. . . .. .. . . . . .. . . .. 20
P Accelerated depreciation of real property (pre-1987}................................ 2
q Accelerated depreciation of leased personal property (pre-1987) (personal
holding companies only) ........................................................
Other adjustments ................................................ ~.~. . ;1;;1; 2r
s Combine lines 2a through 2r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
-31 140
3
Preadjustment alternative minimum taxable income (AMTI). Combine lines 1 and 2s
91 353
4 Adjusted current eamings (ACE) adjustment:
a Enter the corporation's ACE from line 10 of the worksheet on page 11 of the
instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4a
b Subtract line 3 from line 4a. If line 3 exceeds line 4a, enter the difference as a
negative amount. See examples on page 6 of the instructions ....................... 4b
c Multiply line 4b by 75% (.75). Enter the result as a positive amount. . . . . . . . . . . . . . . . . . . 4c
d Enter the excess, if any, of the corporation's total increases in AMTI from prior
year ACE adjustments over its total reductions in AMTI from prior year ACE
adjustments (see page 6 of the instructions). Note: You must enter an amount
on line 4d (even if line 4b is positive) . .. . . . . .. .. . . .. .. . . . . .. . .. . . .. .. . .. .. . .. . . . . . . 4d
e ACE adjustment:
-If you entered a positive number or zero on line 4b, enter the amount from line 4c here as a
positive amount.
-If you entered a negative number on line 4b, enter the smaller of line 4c or line 4d here as a
negative amount.
91
}
55
5 Comb~rle lines 3 and 4e. If zero or less, stop here; the corporation does not owe alternative minimum
tax
5
91 408
.- ........ ...., ..... ....... ......... .............. ..... ... ............. ,.. .......... .............. .......
6 Alternative tax net operating loss deduction (see page 7 of the
instructions) ................................................................................................. 6
7 Alternative minimum taxable income. Subtract line 6 from line 5. If the corporation held a residual
interest in a REMIC see a e 7 of the instructions . . . . . . . . . . . . . . . . . . . . . . . . . .. ..................
For Paperwork Reduction Act Notice, see page 10 of separate Instructions.
OM
7
91 408
Form 4626 (2002)
Form 4626 2002 ROGELE INC.
23-1597186
8
Enter the amount from line 7 (alternative minimum taxable income)
.... ... ..... ................... .... .... ,. .......
9 Exemption phase-out computation (if line 8 is $310,000 or more, skip lines 9a and 9b and enter -0-
on line 9c):
a Subtract $150,000 from line 8 (if completing this line for a member of a controlled
group, see page 7 of the instructions).
If zero or less, enter -0- 9a
................... ........................... ..... ......
b Multiply line 9a by 25% (.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9b
c Exemption. Subtract line 9b from $40,000 (if you are completing this line for a member of a controlled
group, see page 7 of the instructions). If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Subtract line 9c from line 8. If zero or less, enter -0-
................... ...... ,.. ............ .......... ............
11 Multiply line 10 by 20% (.20) .. ............. ............... ....... .... .... ........ ........ .......... ... . ... .....
12 Alternative minimum tax foreign tax credit (see page 7 of the instructions)..................... .......... ... . .. ...... 12
13 Tentative minimum tax. Subtract line 12 from line 11
.................. ......... ............ ...... .... .... ,. ......
14 Regular tax liability before all credits except the foreign tax credit and possessions tax credit. . . . . . . . . . . . . . . . . . . . . . . . . .
15
Alternative minimum tax. Subtract line 14 from line 13. If zero or less, enter -0-. Enter here and on
Form 1120 ScheduleJ line 4, or the a ro riate line of the co oration'sincometaxretum ..........
DM
o
o
9c
10
11
13
Pa e 2
91 408
40 000
51 408
10 282
10 282
o
10 282
Form 4626 (2002)
'.
Department of the Treasury
Internal Revenue Service
Capital Gains and Losses
~ Attach to Form 1120, 1120-A, 1120-F, 1120-FSC, 1120-H,
1120-IC-DISC, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT,
1120-RIC 1120-SF 990-C or certain Forms 990-T.
OMS No. 1545-0123
SCHEDULE D
(Form 1120)
2002
Name
Employer identification number
ROGELE INC.
lleam.
23-1597186
~j:o>la, " Short-Term CaDital Gains and Losses-Assets Held One Year or Less
(a) Description of property (b) Date acquired (c) Date sold (d) Sales price (e) Cost or other (f) Gain or (loss)
(Example: 100 shares of Z Co.) (mo., day, yr.) (mo., day, yr.) (see instructions) basis (see (Subtract (e) from (d))
1
2 Short-term capital gain from installment sales from Form 6252, line 26 or 37 2
.... .......................... ...... ... ...
3 Short-term gain or (loss) from like-kind exchanges from Form 8824 3
. ........... .................. ........ ...... .., ...
4 Unused capital loss carryover (attach computation) 4 )
5 Net short-term caoitaloain or (loss). Combine lines l' th~~~~h'4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
,-," Lona-Term CaDita Gams an ssets Held More Than One Year
.;~aj.. }\ osses-
6
7 Enter gain from Form 4797, column (g), line 7 or 9 ................................................................. 7
8 Long-term capital gain from installment sales from Form 6252, line 26 or 37 8 6 090
. ...... .... .................... ... .... ,...
9 Long-term gain or (loss) from like-kind exchanges from Form 8824 9
............... ..... ......... ..... ..... .... .......
10 Capital gain distributions (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 0
11 Net lono-term caoitaloain or (loss), Combine lines 6 throuoh 10 11 6 090
" .
Imm~ dL
A
Ielminl Summa of Parts I and II
12 Enter excess of net short-term capital gain (line 5) over net long-term capital loss (line 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
13 Net capital gain. Enter excess of net long-term capital gain (line 11) over net short-term capital
loss (line 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
14 Add lines 12 and 13. Enter here and on Form 1120, page 1, line 8, or the proper line on other
returns
......... .................. ..................... .... ...... .........., ....... ..................... .......
Note: If losses exceed ains see Ca itallosses in the instructions on a e 2.
6 090
For Paperwork Reduction Act Notice, see the Instructions for Forms 1120 and 1120-A.
OM
Schedule D (Form 1120) 2002
Form 4562
Depreciation and Amortization
(Including Information on Listed Property)
OMB No. 1545-0172
Department of the Treasury
Internal Revenue Service
Name(s) shown on return
ROGELE :INC.
~ See se arate Instructions.
~ Attach to our tax return.
2002
~~a~~W;en~o. 67
Identifying number
23-1597186
Business or activity to which this form relates
REGULAR DEPRECIATION
IRli$UII Election To Expense Certain Tangible Property Under Section 179
Note: If au have an listed ro ert com lete Part V before au com lete Part I.
Maximum amount. See page 2 of the instructions for a higher limit for certain businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total cost of section 179 property placed in service (see page 2 of the instructions) ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Threshold cost of section 179 property before reduction in limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0-
Dollar limitation for tax
1
2
3
4
5
24 000
1
2
3
4
5
200 000
c Elected cost
6
7 Listed property. Enter the amount from line 29 . . . . .. . . .. . . . . .. . .. .. .. .. . . .. . .. .. .. .. . . . . 7
8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 .......... 0 o' . . . . . 00. . . 00' 0.0.0.0 8
9 Tentative deduction. Enter the smaller of line 5 or line 8 0 0 0 . 0 . . . 0 0 0 0 0 . 0 . . . 0 . . . . 0 . 00 0 . 0 o' . . 0 0 00 0 0 . 0 0 . 0 . . 0 0 0 . . 0 0 . . . 0 9
10 Carryover of disallowed deduction from line 13 of your 2001 Form 4562 ...0......... 0 .. 0 . . . . . 0 .. .. 0 0 0 .. . .. . . 0 . .. .. . 10
11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 11
12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 12
13 Ca over of disallowed deduction to 2003. Add lines 9 and 10. less line 12 ~ 13
Note: Do not use Part II or Part III below for listed property. Instead, use Part V.
11?aFt:n1ll S ecial De reciation Allowance and Other De reciation Do not include listed
14 Special depreciation allowance for qualified prop. (other than listed prop.) placed in service during the tax year (see pgo 3 of the instr.)
15 Property subject to section 168(f)(1) election (see page 4 of the instructions) .. 0 0 o' 0 0... 000........ 0 0...0.0.. '" ... . .
16 Other de reciation includin ACRS see a e 4 of the instructions
IB8ilifIl MACRS Depreciation (Do not include listed propertv.) (See paQe 4 of the instructions.)
Section A
17 MACRS deductions for assets placed in service in tax years beginning before 2002 0 . 0 . . . 0 . . . . 0 . . 0 0 0 0 . 0 . 0 0 . 0 0 . . . 0 . . 0 .
18 If you are electing under section 168(i)(4) to group any assets placed in service during the tax
ear into one or more eneral asset accounts check here
Section B-Assets Placed in Service Durin 2002 Tax Year Us!n the General De
(b) Month and (c) Basis for depreciation (d) Recovery
(a) Classification of property yea~f~~d in (bUsin~SS/il)vestml!nt use period (e) Convention (f) Method
~.'.'.'''''. .....'.. ..!IlSi.....;..
.' ... "~~~
--, ..'." ... - .'-.' - - .-'
1 079
(g) Depreciation deduction
19a
b
h
327 775
241 032
5.0
7.0
HY
HY
S L
S L
32 780
17 215
d
ro e
MM
MM
MM
MM
2002 Tax Year Usin the Alternative De
20a Ciass life S/L
b 12- ear 12 rs. S/L
c 40- ear 40 rso MM S/L
f:~e'an!l~~ Summa see a e 6 of the instructions
21 Listed property. Enter amount from line 28 . 0 . 0 0 0 0 0 . 0 0 . 0 0 0 0 0 0 0 . . . . . . . 0 . . . . . . . . . . 0 0 0 . 0 0 0 . . 0 0 0 0 . . 0 0 . . . . 0 . 0 . 0 . 0 0 00 0 . 21
22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21.
Enter here and on the appropriate lines of your return. Partnerships and S corporations-see instr. 22
23 For assets shown above and placed in service during the current year,
enter the ortion of the basis attributable to section 263A costs 23
For Paperwork Reduction Act Notice, see separate Instructions.
OM
ro e
Nonresidential real
24 164
Form 4562 (2002)
ROGELE, INC.
Form 4562 (2002)
le~ Listed Property (Include .automobiles, c~rtain other vehicles, cellular telephones, certain computers. and
property used for entertamment. recreation, or amusement.)
Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only
24a 24b columns la) throuoh Ie) of Section A all of Section Band Section C if aoolicable
reclation and Other Information Caution: See a e 8 of the instructions for limits for
Yes N 24b
(e) (f)
Basis for depreciation Recovery
(businesslinvestment period
use onl
23-1597186
(g)
Methodl
Convention
(h)
Depreciation
deduction
25
366 951
366 951
24 .1641
27
used 50% or less in a ualified business use
o
S/L-
S/L-
28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 ...................... 28
29 Add amounts in column i line 26. Enter here and on line 7 a e 1 ..........................................
Section a-Information on Use of Vehicles
Complete this section for vehicles used by a sole proprietor, partner, or other "more than 5% owner," or related person.
24
Page 2
If vou orovided vehicles to vour emolovees, first answer the Questions in Section C to see if ou meet an exceotion to comoletinll this section for those vehicles.
30 Total businesslinvestment miles driven during (a) (b) (c) (d) (e) (f)
the year (do not include commuting miles- Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicle 5 Vehicle 6
see page 2 ofthe instructions) . .. ...... . . . . . .. . . . . .
31 Total commuting miles driven during the year. . ... . . .
32 Total other personal (noncom muting) miles driven. . . . . . . . . .
33 Total miles driven during the year.
Add lines 30 throu~h 32 . . . . . . . . . . . . .. . . . . .. .. . . . . .
34 Was the vehicle available for personal Yes No Yes No Yes No Yes No Yes No Yes No
use during off-duty hours? . . . . . . . . . . . . . . . . . . . . . . . . .
35 Was the vehicle used primarily by a
more than 5% owner or related person? ..... .......
36 Is another vehicle available for oersonal use?
Section C-Questions for Employers Who Provide Vehicles for Use by Their Employees
Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who
are not more than 5% owners or related ersons see a e 8 of the instructions.
Yes No
37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by your employees? . . . . . . . . . . . . . . . . . . . . . . . . .
38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees?
See page 8 of the instructions for vehicles used by corporate officers, directors, or 1 % or more owners ...............................
39 Do you treat all use of vehicles by employees as personal use? .. . . . . . .. .. . . . . .. . . .. .. . .. . . . . . . . . . . . .. .. .. . . .. . . . . . . .. . . . . . . . . . . . .
40 Do you provide more than five vehicles to your employees, obtain information from your employees about
the use of the vehicles, and retain the information received? .....................................................................
41 Do you meet the requirements concerning qualified automobile demonstration use? (See page 9 of the instructions.) ............
Note: If our answer to 37 38 39, 40 or 41 is ''Yes'' do not com lete Section B for the covered vehicles. .BIIIfIIl'li
~eTrl~11l Amortization
(a)
Description of costs
(c)
Amortizable
amount
(d)
Code
section
42 Amortization of costs that be
a e 9 of the instructions :
43 Amortization of costs that began before your 2002 tax year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44 Total. Add amounts in column . See a e 9 of the instructions for where to re ort
DM
43
44
(f)
Amortization for
this year
Form 4562 (2002)
Form 4797
Sales of Business Property
(Also Involuntary Conversions and Recapture Amounts
Under Sections 179 and 280F(b)(2))
~ Attach to our tax return. ~ See se arate instructions.
Department of the Treasury
Internal Revenue Service 99
Name(s) shown on return
OMS No. 1545-0184
2002
~::a~~~:~o. 27
Identifying number
ROGELE INC.
1 Enter the gross proceeds from sales or exchanges reported to you for 2002 on Form{s) 1099-8 or 1099-S {or
substitute statement that ou are includin on line 2 10 or 20 see instructions 1
lililtl. Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other
Than Casual or Theft-Most Pro e Held More Than 1 Year See instructions.
(e) Depreciation (f) Cost or other
allowed basis, plus
or allowable since improvements and
ac uisition ex ense of sale
(a) Description
of property
(b) Date acquired
(mo., day, yr.)
(e) Date sold
(mo., day, yr.)
(d) Gross sales
price
2
3 Gain, if any, from Form 4684, line 39 ...........................................................................
4 Section 1231 gain from installment sales from Form 6252, line 26 or 37 ............................................
5 Section 1231 gain or (loss) from like-kind exchanges from Form 8824 ....................... .. . . . .. .. .. .. . . . .. .. . . .
6 Gain, ifany, from line 32, from other than casualty or theft ........................................................
7 Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows: . . . . . . . . . . . . . . . . . . . . . . . .
Partnerships (except electing large partnerships) and S corporations. Report the gain or (loss) following
the instructions for Form 1065, Schedule K, line 6, or Form 1120S, Schedule K, line 5. Skip lines 8, 9, 11, and 12 below
All others. If line 7 is zero or a loss, enter the amount from line 7 on line 11 below and skip lines 8 and 9. If line
7 is a gain and you did not have any prior year section 1231 losses, or they were recaptured in an earlier year,
enter the gain from line 7 as a long-term capital gain on Schedule D and skip lines 8, 9, 11, and 12 below.
8 Nonrecaptured net section 1231 losses from prior years (see instructions) .......................................... 8
9 Subtract line 8 from line 7. If zero or less, enter -0-. if line 9 is zero, enter the gain from line 7 on line 12 below.
if line 9 is more than zero, enter the amount from line 8 on line 12 below and enter the gain from line 9 as a long-
term capital gain on Schedule 0 (see instructions) ............................................................... 9
le"ftllll
Ordinary Gains and Losses
10 Ordina ains and losses not included on lines 11 throu
11 Loss, if any, from line 7 .......................................................................................
12 Gain, if any, from line 7 or amount from line 8, if applicable .. . . . . . . .. . .. .. . .. .. . . .. . .. . . .. . . . . . . .. . . . . . . . . . . . . . . . . .
13 Gain, if any, from line 31 ......................................................................................
14 Net gain or (loss) from Form 4684, lines 31 and 38a . . .. . .. . . .. . . .. .. . . . . .. . .. .. . .. .. . . .. . . . .. . . . .. .. . . .. . . . . . . . . .
15 Ordinary gain from installment sales from Form 6252, line 25 or 36 ................................................
16 Ordinary gain or (loss) from like-kind exchanges from Form 8824 ........................... .. . . .. .. . .. . . . . . . . . .. . .
17 Recapture of section 179 expense deduction for partners and S corporation shareholders from property
dispositions by partnerships and S corporations (see instructions) .................................................
18 Combine lines 10 through 17. Enter the gain or (loss) here and on the appropriate line as follows: .....................
a For all except individual returns. Enter the gain or (loss) from line 18 on the retum being filed.
b For individual returns:
(1) If the loss on line 11 includes a loss from Form 4684, line 35, column (b)(ii), enter that part of the loss here.
Enter the part of the loss from income-producing property on Schedule A (Form 1040), line 27, and the part
of the loss from property used as an employee on Schedule A (Form 1040), line 22. Identify as from "Form
4797, line 18b(1)." See instructions.... ................................. ................... ....... ... . .. ....
(2) Redetermine the gain or (loss) on line 18 excluding the loss, if any, on line 18b(1). Enter here and on Form 1040,
line 14
For Paperwork Reduction Act Notice, see page 7 of the Instructions.
OM
(g) Gain or (loss)
Subtract (f) from
the sum of (d)
and e
11
12
13
14
15
16
6 783
Form 4797 (2002)
rurJII'tHH
J:"""-\:r.c. .1. U.r: .1.
23-1597186
Pa~e 2
(2002)
ROGELE, INC.
~~I~ Gain From Disposition of Property Under Sections 1245, 1250, 1252,1254, and 1255
19 (a) Description of section 1245, 1250, 1252, 1254, or 1255 property: (b) Date acquired (c) Date sold
(mo. day vr.! (mo. day vr.!
A T-7 1994 DODGE 2500 PICKUP TRUCK BR7L62 8/01/94 12/31/02
B
c
D
These columns relate to the orooertles on lines 19A - 19D. ~ Prooertv A Prooertv B ProDertv C ProDertv D
20 Gross sales price (Note: See line 1 before completing.) 20 9 949
... ....
21 Cost or other basis plus expense ofsale ..... . . . . . . . . . . .. . . . . 21 22 951
22 Depreciation (or depletion) allowed or allowable. . . . . . . . . . . . . . . 22 19.785
23 Adjusted basis. Subtract line 22 from line 21 .. . . . . . . . . . . . . . . . . 23 3.166
24 Total aain. Subtract line 23 from line 20 24 6.783
25 Ifsectlon 1245 property:
a Depreciation allowed or allowable from line 22 . . . . . . . . . . . . . . . . 25a 19.785
b Enter the smaller of line 24 or 25a 25b 6.783
26 If section 1250 property: If straight line depreciation was used, enter
-0- on line 26g, except for a corporation subject to section 291.
a Additional depreciation after 1975 (see instructions) ........... 26a
b Applicable percentage multiplied by the smaller of line 24
or line 26a (see instructions) . .. .. ..... . . . . . . . . . . . ... . . . . .. . . 26b
c Subtract line 26a from line 24. If residential rental property
or line 24 is not more than line 26a, skip lines 26d and 26e . . . . . 26c
d Additional depreciation after 1969 and before 1976 . . . . . . . . . . . . 26d
e Enter the smaller of line 26c or 26d 26e
........ .................
f Section 291 amount (corporations only) . . . . . . . . . . . . . . . . . . . . . . 26f
g Add lines 26b 26e. and 26f 26a
27 If section 1252 property: Skip this section if you did not
dispose of farmland or if this form is being completed for a
partnership (other than an electing large partnership).
a Soil, water, and land clearing expenses . . . . . . . . . . . . . . . . . . . . . . 27a
b Line 27a multiplied by applicable percentage (see instr.) ....... 27b
c Enter the smaller of line 24 or 27b 27c
28 If section 1254 property:
a Intangible drilling and development costs, expenditures for
development of mines and other natural deposits, and
mining exploration costs (see instructions) 28a
..... ... ...........
b Enter the smaller of line 24 or 28a 28b
29 Ifsectlon 1255 property:
a Applicable percentage of payments excluded from income
under section 126 (see instructions) ...... . . . . . . . . . . . . . . . . . . . 29a
b Enter the smaller of line 24 or 29a (see instructions) 29b
Summa oin to line 30.
30
Total gains for all properties. Add property columns A - D, line 24 ... . . . . . . . . . . . . ,
30
6 783
31 Add property columns A through D, lines 25b, 26g, 27c, 28b, and 29b.
Enter here and on line 13 ..................................................................................... 31
32 Subtract line 31 from line 30. Enter the portion from casualty or theft on Form 4684, line 33. Enter the portion
from other than casualt or theft on Form 4797 line 6 32
lr:~e1i:ffl~ Recapture Amounts Under Sections 179 and 280F(b)(2) When Business Use Drops to 50% or Less
See instructions.
6 783
o
(a) Section
179
(b) Section
280F b 2
33 Section 179 expense deduction or depreciation allowable in prior years . . . . . . . . . . . . . . . . . . . . 33
34 Recomputed depreciation. See instructions ............................................ 34
35 Reca ture amount. Subtract line 34 from line 33. See the instr. for where to re ort 35
OAA
Form 4797 (2002)
Form 6252
Installment Sale Income
OMB No. 1545-0228
Department of the Treasury
Internal Revenue Service
Name(s) shown on return
~Attach to your tax return.
~se a separate form for each sale or other disposition of
ro e on the installment method.
2002
~~~~~;~o. 79
Identifying number
ROGELE INC. 23-1597186
1 Description of property~ ...... ~. . .. . . . . . . . . . . ... . . . .. . . .. .. . . . . . . . . . . . . . . . . . ...... ... ... . .. .. . . ... . . . . . . .. . . . . . .. . . . . . . . . ... . . . .. . .. ..
2a Date acquired (month, day, year)~ 1 / 01 / 901 b Date sold (month, day, year)~ 7 /31 / 031
3 Was the property sold to a related party (see instructions) after May 14, 19BD? If "No," skip line 4. . . .. . . . . . . . . . .. . . . . . . . .. ..... 0 Yes
4 Was the property you sold to a related party a marketable security? If "Yes," complete Part III. If "No,"
com lete Part III for the ear of sale and the 2 ears after the ear of sale
ie~'. Gross Profit and Contract Price. Com lete this art for the ear of sale ani
5 Selling price including mortgages and other debts. Do not include interest whether stated or unstated .................
6 Mortgages, debts, and other liabilities the buyer assumed or took
the property subject to (see instructions) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Subtract line 6 from line 5 ....................................................... 7
Cost or other basis of property sold.. .. .. . . .. .. . . . . . . . .. . .. . . . .. . . . . . . . . .. . . . . . .. . 8
Depreciation allowed or allowable ................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Adjusted basis. Subtract line 9 from line B . . .. . . .. . . . . . . . . . .. . . .. . . . .. .. . .. . . . . . . . . 10
Commissions and other expenses of sale ......... . .. . .. . . . . . . .. . .. .. .. . . . . .. . . .. . 11
Income recapture from Form 4797, Part III (see instructions) ........................ 12
Add lines 10, 11, and 12 ...................................................................................... 13
Subtractline 13 from line 5. If zero or less, do not complete the rest of this form (see instructions) .. . . . . . . . .. . . . . . . . . . . 14
If the property described on line 1 above was your main home, enter the amount of your excluded
gain (see instructions). Otherwise, enter -0- ............................................................. . .. . . . . . 15 0
16 Gross profit Subtract line 15 from line 14 ...................................................................... 16 36 541
17 Subtract line 13 from line 6. Ihero or less, enter -0- ... . .. . .. . . .... .. .... .. .. . . . ... .. . .. . ... ...... . .. . .. .. . . . .. .. . 17 0
18 Contract rice. Add line 7 and line 17 18 60 0 0 0
itI~J:lI Installment Sale Income. Complete this part for the year of sale and any year you receive a payment or
have certain debts ou must treat as a a ment on installment obli ations.
Gross profit percentage. Divide line 16 by line 18. For years after the year o18ale, see instructions. . . . . .. . . . . . . . . . . . . . .
If this is the year o15ale, enter the amountfrom line 17. Otherwise, enter-O- ........................................
Payments received during year (see instructions). Do not include interest, whether stated or unstated .................
Add lines 20 and 21 ..........................................................................................
Payments received in prior years (see instructions). Do not include
interest, whether stated or unstated .............................................. 23
24 Installment sale Income. Multiply line 22 by line 19 . . .. .. . .. . .. .. . .. .. .. . . .. . . . . . . . . . . . . .. .. .. . .. .. . .. . .. . . . . . . . . 24
25 Enter the part of line 24 that is ordinary income under the recapture rules (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
26 Subtract line 25 from line 24. Enter here and on Schedule D or Form 4797 see instructions 26 6 090
lIem'lrlJ Related Party Installment Sale Income. Do not complete if you received the final payment this tax year.
27 Name, address, and taxpayer identifying number of related party .........................,.......................................................
~ No
7
8
9
10
11
12
13
14
15
No
60 000
60
16
16
6
23 459
36 541
19
20
21
22
23
19
20
21
22
60.9017
o
10 000
10 000
6 090
28 Did 'th~ ~~I~t~d' p~rtY' ~~~~Ii ~'r'di~p~~~ ~f'th~' p~~p~rtY' ("~~'~~~d 'cii~P~~iti~~';)' d~ri~g ihi~' i~~ y~~'~' : : : : : : : : : : : : : : : : : : : : : : : : : :: : : : : . . D' . y~~' . . . . . D . N'~
29 If the answer to question 28 is "Yes," complete lines 30 through 37 below unless one of the following conditions is
met Check the box that applies.
a 0 The second disposition was more than 2 years after the first disposition (other than dispositions
of marketable securities). If this box is checked, enter the date of disposition (month, day, year) ~ I
b ~ The first disposition was a sale or exchange of stock to the issuing corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c The second disposition was an involuntary conversion and the threat of conversion occurred after the first disposition.
d The second disposition occurred after the death of the original seller or buyer.
e It can be established to the satisfaction of the Internal Revenue Service that tax avoidance was not a principal purpose
for either of the dispositions. If this box is checked, attach an explanation (see instructions).
30 Selling price of property sold by related party ............................................................. .. . .. .. 30
31 Enter contract price from line 18 for year of first sale. . . . . .. . . .. . . .. . . .. .. .. . . . . . . . . . .. . . . .. . . .. . .. .. .. .. . .. . . . . . . . 31
32 Enter the smaller of line 30 or line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
33 Total payments received by the end of your 2002 tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
34 Subtract line 33 from line 32. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
35 Multiply line 34 by the gross profit percentage on line 19 for year of first sale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
36 Enter the part of line 35 that is ordinary income under recapture rules (see instructions) .............................. 36
37 Subtract line 36 from line 35. Enter here and on Schedule D or Form 4797 see instructions .......................... 37
OM For Paperwork Reduction Act Notice, see page 4. Form 6252 (2002)
Form 8827
Credit for Prior Year Minimum Tax-Corporations
~ Attach to the corporation's tax return.
~~gr~~rW~~~~~~es-r:~f~ry
Name
ROGELE. INC.
OMB No. 1545-1257
2002
I Employer identification number
23-1597186
1 Altemative minimum tax (AMT) for 2001. Enter the amount from line 15 of the 2001 Form 4626
2
3
Minimum tax credit carryforward from 2001. Enter the amount from line 9 of the 2001 Form 8827
Enter the total of any 2001 unallowed nonconventional source fuel credit and 2001 unallowed
qualified electric vehicle credit (see instructions) .................................................................
4 Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Enter the corporation's 2002 regular income tax liability minus allowable tax credits (see
instructions) ................................................................................................. 5
6 If the corporation is:
. A "small corporation" exempt from the AMT for 2002 and line 5 is $25,000 or less, enter -0-
(see instructions).
. A "small corporation" exempt from the AMT for 2002 and line 5 is more than $25,000, enter
25% (.25) of the excess.
. Not a "small corporation" exempt from the AMT for 2002, complete Form 4626 for 2002 and
enter the tentative minimum tax from line 13 6
.............. ....... ... .............. .... ..... ............... .... ...
7 Subtract line 6 from line 5. If zero or less, enter-O-
. .......... .... ....................... ..... ............. .... ...
8 Minimum tax credit. Enter the smaller of line 4 or line 7. Also enter this amount on the
appropriate line of the corporation's income tax return {e.g., Form 1120, Schedule J, line 6e).lf
the corporation had a post-1986 ownership change or has pre-acquisition excess credits. see
instructions
,. ... ............... ................ .......... ........ ........ ........... .............. ...........
9 Minimum tax credit carryforward to 2003. Subtract line 8 from line 4. Keep a record of this
amount to carrY forward and use in future vears . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For Paperwork Reduction Act Notice, see page 2.
OM
13.315
2
3
13.315
10 282
7
o
8
o
9
13.315
Form 8827 (2002)
Form 1120
Name
ROGELE INC.
NOL and Contribution Carryover Worksheet - Regular Tax
2002
, endin
Employer Identification Number
23-1597186
Prior Year
Current Year
tncome Offset By
NOL Carryback!
Carryover
NOL Utilized
Next Year
Preceding
Taxable Year
15th
7 31 88
14th
7
13th
7 31 90
12th
7 31 91
11th
7 31 92
10th
7
94
31 95
7th
7
6th
7 31 97
5th
7 31 98
4th
7
3rd
7 31 00
2nd
7 31 01
1st
7 31 02
Car overs
-936 487
-7,342
-7 342
-3,250
-3 250
-12,675
-12 675
936 487
7 342
3 250
12 675
125 907
-38 287
9 080
41 567
-1,391
-369 090
369 090
13 912
-46,379
-466 150
-13 912
307 596
158 554
122 493
36 061
662 774
-662 774
NOL Carryover Available To Current Year
Current Year
-7,432
122 493
122 493
7 432
NOL Carryover Available To Next Year
43 493
Excess
Contributions
9 870
12 946
8 883
2 643
5 411
Prior Year
Utilized Or
Reclassed to NOL
9 870
12 946
8 883
2 643
5 411
Charitable Contributions
Next Year
Preceding
Tax Year
7 31
7 31
7 31
7 31
7 31
Charitable Contribution Car
Current Year
Charitable Contribution Car
o m!&~~~
7 432
NOL and Contribution Carryover Worksheet - AMT
Form 1120
2002
Employer Identification Number
Name
ROGELE INC.
23-1597186
Prior Year Current Year Next Year
Income Offset By
Preceding NOL Carryback!
Carryover
Taxable Year Car overs NOL Utilized
15th
7 31 88
14th
7
13th
7 31 90
12th
7 31 91
11th
7 31 92 -873 430 873 430
10th
7 -41 012 41 012
9th -82,928
7 94 -93 012 93 012
th
7 31 95
7th
7 112 542 -106 124
6th
7 32 275 -29 341
5th
7 109 162 -99 238
4th -4,996
7 -296 189 296 189
3rd
7 31 00 54 959 -54 959
2nd
7 31 01 -36 251 36 251
1st
7 31 02 633 705
Current Year
o
82 267
NOL Carryover Available To Current Year
NOL Carryover Available To Next Year
o
7 711
2 643
7 711
2 643
Next Year
Charitable Contributions
Excess
Contributions
Prior Year
Utilized Or
Reclassed to NOL Car
Charitable Contribution Car
Current Year
Charitable Contribution Carryover Available To Next Year
Year Ending: July 31, 2003
23-1597186
ROGELE, INC.
1025 S. 21 ST STREET
HARRISBURG, PA 17105-1757
Electing out of the 300/0 Bonus Depreciation Allowance
for All Eligible Depreciable Property
The taxpayer elects out of the 30% first-year bonus depreciation allowance under IRC Section
168(k) for all eligible asset classes of depreciable property acquired after September 10, 2001
and before May 6, 2003. This election applies to all qualified 30% bonus depreciation property
placed in service during the tax year.
Year Ending: July 31, 2003
23-1597186
ROGELE, INC.
1025 S. 21 ST STREET
HARRISBURG, PA 17105-1757
Electing out of the 500/0 Bonus Depreciation Allowance
for All Eligible Depreciable Property
The taxpayer elects out of the 50% first-year bonus depreciation allowance under IRC Section
168(k) for all eligible asset classes of depreciable property acquired after May 5, 2003. This
election applies to all qualified 50% bonus depreciation property placed in service during the tax
year.
Year Ending: July 31, 2003
23-1597186
ROGELE, INC.
1025 S. 21 ST STREET
HARRISBURG, PA 17105-1757
Straight-Line Depreciation Method Election
Under IRe Section 168(b)(3)(D), the taxpayer elects to use the straight-line method of
depreciation, instead of the regular statutory method in computing the deduction for all property
placed into service during its tax year ending July 31, 2003. The election, made in accordance
with Code Sec. 168(b )(5), applies to all property placed in service during the tax year.
1 L4 KUl;;t:.Lt:., I Nt;.
23-1597186
FYE: 7/31/2003
Federal Statements
Page 1
Statement 1 - Form 1120. Paae 1. Line 10 - Other Income
Description
MISCELLANEOUS
TOTAL
$
$
Amount
4,960
4,960
Statement 2 - Form 1120. Paae 1. Line 19 - Charitable Contributions
LESS CONTRIBUTIONS DISALLOWED
DEDUCTION ALLOWED IN CURRENT YEAR
Amount
7,432
o
7,432
7,432
o
o
$ 0
Description
CURRENT YEAR CONTRIBUTIONS
CARRYOVER FROM PRIOR YEARS
TOTAL CONTRIBUTIONS AVAILABLE
LESS RECLASSIFICATION TO NOL
Statement 3 - Form 1120. Paae 1. Line 26 - Other Deductions
Description
OFFICE EXPENSE
YARD AND BLDG - MAINT & TOOL
DUES AND SUBSCRIPTIONS
INSURANCE, GENERAL
TELEPHONE
UTILITIES
PROFESSIONAL FEES
DIRECTORS FEES
TOTAL
$
Amount
50,094
91,418
6,493
428,657
12,181
36,280
40,271
6,000
671,394
$
Statement 4 - Form 1120. Paae 2. Schedule A. Line 5 - Other Costs
Description
MAT'L, LABOR, SUBS & RENTAL
EQUIPMENT OPERATING COSTS
TOTAL
Amount
$ 9,185,839
1,552,002
$ 10,737,841
Statement 5 - Form 1120. Pa 3. Sch K. Question 5 - Did Entity Own 50% or More of Corp
Stock?
EIN/SSN
161-34-4493
TOTAL
Name of Entity
JUDITH A. MCCLURE
Percent
Owned
100.0000
100.0000
1-5
1 L4 KUl;;t:.Lt:., INt;.
23-1597186
FYE: 7/31/2003
Federal Statements
Page 2
Statement 6 - Form 1120, Paae 4, Schedule L, Line 6 - Other Current Assets
Beginning End
Description of Year of Year
BID DEPOSITS - PLAN DEPOSIT $ 2,425 $ 2,425
PREPAID CORPORATE TAXES 13,514 15,915
COSTS IN EXCESS OF BILLING 67,149 58,070
TOTAL $ 83,088 $ 76,410
Statement 7 - Form 1120, Paae 4, Schedule L, Line 14 - Other Assets
Description
CASH SURRENDER VALUE:L/I
TOTAL
Beginning
of Year
$ 17,217
$ 17,217
$
$
End
of Year
17,217
17,217
Statement 8 - Form 1120, Paae 4. Schedule L, Line 18 - Other Current Liabilities
Beginning End
Description of Year of Year
PAYROLL AND SALES TAX $ 6,421 $ 8,480
EMPLOYEE CHRISTMAS FUND 48,140 48,079
CORPORATE TAXES 20,489 19,257
DEFERRED GAIN, LAND SALE 30,451
TOTAL $ 75,050 $ 106,267
Statement 9 - Form 1120, Paae 4. Schedule L, Line 21 - Other Liabilities
Description
BILLINGS ON UNCOMPLETED JOBS
TOTAL
Beginning
of Year
$ 232,402
$ 232,402
$
$
End
of Year
541,491
541,491
Statement 10 - Form 1120. Paae 4, Schedule M-1, Line 5 - Expenses on Books Not on Return
Description
Amount
PENALTIES
$
1
OFFICER LIFE INS PREMIUMS
TOTAL
$
5,005
5,006
6-10
I L."" ~U'-='I::.Lt:., lI',\v.
23-1597186
FYE: 7/31/2003
Federal Statements
Page 3
Statement 11 - Form 4626. Line 2r. Other Adiustments
Description Amount
CHARITABLE CONTRIBUTIONS $ -7,432
TOTAL $ -7,432
Regular Depreciation
Statement 12 _ Form 4562. Line 26. Additional Propertv Used More Than 50%
Property
Type
Date in Busn Cost or Basis For
Service Use % Basis Depr Per Meth Deduct Sec 179
T-7 1994 DODGE 2500 PICKUP TRUCK BR7L62
8/01/94 100.00 $ 22,951 $ 22,951 5.0 S/L-HY $ 1,675 $
96 MERCEDES SL500R/93
4/19/96 100.00 94,139 94,139 5.0 200DBHY 1,775
96 TOYOTA 4 RUNNER
5/24/96 100.00 30,866 30,866 5.0 200DBHY 1,775
A-3 FORD EXPLORER CHRIS
11/11/99 100.00 32,084 32,084 5.0 S/L-HY 1,775
A-2 98 FORD EXPLORER ROB
3/04/98 100.00 35,268 35,268 5.0 200DBHY 1,775
A-4 200 JEEP CHRIS
8/01/99 100.00 32,140 32,140 5.0 S/L-HY 1,775
2001 FORD EXPLORER
10/10/00 100.00 44,512 44,512 5.0 S/L-HY 2,950
2002 GMC ENVOY
8/28/01 100.00 37,776 37,776 5.0 S/L-HY 4,900
2002 FORD EXPLORER XCT
9/18/01 100.00 32,895 32,895 5.0 S/L-HY 4,900
COMPUTER
9/18/98 100.00 1,140 1,140 5.0 S/L-HY 228
1990 NISSON PATHFINDER
2/08/02 100.00 3,180 3,180 5.0 S/L-HY 636
TOTAL $ 366,951 $ 366,951 $ 24,164 $ 0
11-12
Form 8697
Interest Computation Under the Look-Back
Method for Completed Long-Term Contracts
(Rev. November 2002)
OMS No. 1545-1031
Attachment
Se uence No. 97
For the filin
Name
ROGELE
INC.
Number, street, and apt., room, or suite no. If a P.O. box, see page 3 of the Instructions.
Check applicable box to show type of taxpayer.
Corporation 8 5 corporation
Individual Partnership
Estate or trust
If you were an owner of an interest in a pass-through entity (such as a partnership or an 5 corporation) that holds one or more long-term contracts to which this
interest computation relates, enter the name and employer identification number of the entity. Attach a schedule It there is more than one such entity.
Name of entity I Employer identification number
Fill In Your
Address Only If
You Are Filing Thl
Form Separalely
and Not With Your
Tax Return
City or town, state, and ZIP code
c
i.\~.
~gC\ilfi .
Regular Method
1 Taxable Inc. or loss for the prior years shown on tax
retum (or as previously adjusted) before net operating
loss or capital loss carrybacks (other than carrybacks
that must be taken Into account to properiy compute
Interest under section 460) (see page 3 of the instr.).
If you were required to file Form 8697 for an earlier
year, enter adjusted taxable Income for the prior
years from line 3, Form 8697, for the most recent
tiling year that affects the prior years . . . . . . . . . . . . . .
2 Adjustment to Income to reflect the difference
between: (a) the amount of income required to be
allocated for post-February 1986 contracts completed
or adjusted durlng the tax year based on the actual
contract price & costs, and (b) the amount of Income
reported for such contracts besed on estimated
contract price and costs. See page 3 of the Instr. and
attach a schedule listing each separate contract,
unless you were an owner of an interest in a pass-
through entity reporting this amount from Schedule
K-1 or a similar statement
3 Adjusted taxable Income for look-back purposes.
Combine lines 1 and 2
,. .......................
4 Income tax liability on line 3 amt. using tax rates in
effect for the prior years (see page 3 of the instr.)
5 Income tax liability shown on retum (or as previously
adjusted) for the prior years (see pg. 3 of the instr.).
If you were required to tile Form 8697 for an earlier
year, enter the amount required to be reported on line
4, Form 8697, for the most recant tiling year that
affects the prior years .........................
6 Increase or decrease in tax for the prior years on
which interest Is due (or is to be refunded). Subtract
line 5 from line 4.
...... ... ....................
B
Date of each prior year to which interest
com utation relates:
(a)
Year ended
7 31 01
(b)
Year ended
7 31 02
(e)
Year ended
7 Interest due on increase, it any, shown on line 6 (see
page 3 of the instructions) . . . . . . . . . . . . . . . . . . . . . .
8 Interest to be refunded on decrease, It any, shown on
line 6 (see page 3 of the instructions) .............
9 Net amount of Interest to be refunded to you. If line 8, column (d), exceeds line 7, column (d), enter the excess. File
Form 8697 separately; do not attach it to your tax return (see page 3 of the instructions) ..............................................
10 Net amount of Interest you owe. If line 7, column (d), exceeds line 8, column (d), enter the excess. Attach
Form 8697 to your tax return. See page 4 of the instructions for where to include this amount on your return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DAA For Privacy Act and Paperwork Reduction Act Notice, see page 5 of the instructions.
-578 303
-112 175
-2:37 987
-159 126
-816 290
-271 301
13 315
13 315
Form 8697 (Rev. 11-2002)
Form 8697 (Rev. 11-2002) ROGELE, INC.
'~mt]ti'JiI Simplified Marginal Impact Method
23-1597186
Date of each prior year to which interest
com utation relates:
1 Adjustment to regular taxable Income to reflect the
difference between: (a) the amount of such income
required to be allocated for post-February 1986
contracts completed or adjusted during the tax year
based on actual contract price and costs, and (b) the
amount of such Income reported for such contracts
based on estimated contract price and costs. See
page 4 of the Instr. and attach a schedule listing each
separate contract, unless you were an owner of an
interest in a pass-through entity reporting this
amount from Schedule K-1 or a similar statement . . . .
2 Increase or decrease In regular tax for prior years.
Multiply line 1 in each column by the applicable regular
tax rate (see page 4 of the instructions) ...........
Note: For prior years beginning before 1987, skip lines 3
and 4 and enter on line 5 the amount from line 2.
(a)
Year ended
(b)
Year ended
3 Adjustment to altemative minimum taxable Income to
reflect the difference between: (a) the amount of
of such income required to be allocated for post-
February 1986 contracts completed or adjusted during
the tax year based on actual contract price and
costs, and (b) the amount of such income reported
for such contracts based on estimated contract
price & costs. See page 4 of the instr. & attach a sch.
listing each separate contract, unless you were an
owner of an interest in a pass-through entity reporting
this amI. from Schedule K-1 or a similar statement
4 Increase or decrease In alternative minimum tax
(AMT) for prior years. Multiply line 3 in each column
by the applicable AMT rate. (see page 4 of the instr.)
5 Enter the larger of line 2 or line 4. See page 4 of the
instructions if either amount is negative. . . . . . . . . . . .
pass.through entities: Skip line 6 and enter on line 7
the amount from line 5.
6 Overpayment ceiling. For each column in which line 5 is
a negative number, enter your total tax liability for
the prior year, as adjusted for past applications of
of the look-back method and after net operating loss,
capital loss, net section 1256 contracts loss, and
credit carryovers and carrybacks to that year. For
each column In which line 5 is a positive number, leave
line 6 blank and enter on line 7 the amount from line 5
7 Increase or decrease in tax for the prior years on
which interest is due (or is to be refunded). Enter the
amount from line 5 or line 6, whichever is smaller.
Treat both numbers as positive when making this
comparison, but enter the amI. as a negative number
(e)
Year ended
8 Interest due on Increase, if any, shown on line 7 (see
page 4 of the instructions) . . . . . . . . . . . . . . . . . . . . . .
9 Interest to be refunded on decrease, if any, shown on
line 7 (see page 4 of the instructions) .............
10 Net amount of Interest to be refunded to you. If line 9, column (d), exceeds line 8, column (d), enter the excess. File
Form 8697 separately; do not attach It to your tax retum (see page 4 of the instructions) ..............................................
11 Net amount of Interest you owe. If line 8, column (d), exceeds line 9, column (d), enter the excess. Attach
Form 8697 to our tax retum. See a e 4 of the instructions for where to include this amount on our retum
Under penalties of periury, I declare that I have examined this form, including accompanying schedules and statements, and to the best of my
knowledge and behef, It is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer
has any knowledge.
~ SI
~
Sign
Here
Date
Paid
Pre parer's
Use Only
Praparer's
si nature
Firm's name (or yours
If self-employed), ad-
dress, and ZIP code
~ CHUBB AND ASSOCIATES
,. P.O. BOX 6597
HARRISBURG PA
DM
~
17112-0597
Page 2
Pre parer's SSN or PTIN
P00004835
25-1645828
EIN
Phone no.
717-541-1860
t-
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Supporting Documentation from July 31, 2002
FORM 8697
Attachment
Filing Year ending: 7/31/03
Rogele, Inc.
EIN # 23-1597186
..'";.
1120
Form
Department of the Treasury
Internal Revenue Service
U.S. Corporation Income Tax Return
For calendar year 2001 or tax year beginning. . . . . . . . . ~ / ~ ~.I.(;q. . ending .... 'J/ ~ ~ I. 9.?
~ Instructions are se arate. See a e 20 for Pa erwork Reduction Act Notice.
Name Number, street, & room or suite no. City or town, state, and ZIP code B Employer Identification number
ROGELE INC. 23-1597186
q A Check If a:
1 Consolidated return 8
(attach Form 851)
2 Personal holdi.ng co.
(attach Sch. PH)
3 Personal servi~ corp.
frs defined In Tem~Orary
s:~Tri:t~Ct1o~~1-4 -
E Check applicable boxes:
1a
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Deductions 17
18
(See 19
Instructions 20
for
limitations 21
on 22
deductions.
23
24
25
26
27
28
29
Income
Tax and
Payments
Sign
Here
Paid
Preparer's
Use Only
OM
STREET
C Date incorporated
8 04 61
D Total assets (see page 8 of instructions)
5 243 422
'Ie 15 625 903
2 12 030 365
3 3 595 538
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Address change $
Gross rcpt./sales 15 , 625 , 9031b Less rtn. & allowances Ie 8al ~
Cost of goods sold (Schedule A, line 8) . . . . . .. . . . .. .. . . . . . .. .. .. .. . . . . .. . . .. .. .. . . . . . . .. . .. . . . . . . . . . .
Gross profit. Subtract line 2 from line 1 c .............................................................
Dividends (Schedule C, line 19) . . .. .. . . . . . . .. . .. . . . .. . . . . . . . . .. .. . . . . .. . .. . .. .. . . . . . .. . . .. . . . . . . . . ..
Interest ..........................................................................................
Gross rents ......................................................................................
Gross royalties ...................................................................................
Capital gain net income (attach Sch. D (Form 1120)) ......................................... . . . .. . . ..
Net gain or (loss) from Form 4797, Part II, line 18 (attach Form 4797) ...................... .. .. . . . .. . . ..
Other income (see page 8 of instructions-attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~~. . . . . .
Total Income. Add lines 3throu h 10 ~
Compensation of officers (Schedule E, line 4) ........................................................
Salaries and wages (less employment credits) ........................................................
Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bad debts
Rents
................. ...... .......... .............................................. ..... .... ....
Taxes and licenses
Interest
...................... ....................... ............................. ......... .......
Charitable contributions (see page 10 of instructions for 10% limitation) .................... s.~. . .. . .
Depreciation (aUach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 675 729
Less depreciation claimed on Schedule A and elsewhere on return 21a
Depletion ........................................................................................
Advertising .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension, profit-sharing, etc., plans ..................................................................
Employee benefit programs ................................................................. . . . . . . .
Other deductions (attach schedule) .................................................... ~~. . . . . .
Total deductions. Add In. 12 through 26 ........................................................ ~
Taxable income before net operating loss deduction & special deductions. Subtract line 27 from In. 11
Less: a Net operating loss (NOL) deduction (see page 13 of instr.) 29a 774
b S ecial deductions Schedule Cline 20 ........ ........ .,. 29b
Taxable Income. Subtract line 29c from line 28
......... ... ........................ ............. .....
Totaltax (Schedule J, line 11) .....................................................................
a 2000 overpayment 7 2 0 9
Payments: credited to 2001 .. 32a
2001 estimated tax payments 32b
Less 2001 refund applied for . . 32 d B I
on Form 4466 .................. c a
e Tax deposited wilh Form 7004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit for tax paid on undistributed capital gains (attach Form 2439)
Credit for Federal tax on fuels (aUach Form 4136). See instructions 32
Estimated tax penalty (see page 14 of instructions). Check if Form 2220 is aUached .............
Tax due. If line 32h is smaller than the total of lines 31 and 33, enter amount owed. . . . . . . . . . . . . . . . . . . . . . .
Overpayment. If line 32h is larger than the total of lines 31 and 33, enter amount overpaid ................
Enter amI. of line 35 ou want: Credited to 2002 est. tax ~ Refunded ~
Under penalties of perjury, I declare that I have examined this retum, including accompanying schedules
and statements. and to the best of my knowledge and belief, it is true, correct. and complete. Declaration
of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
~ I
51 nature of officer Date
Pre parer's ... Date
si nature ,.
. ............................ ...................... ................... ........... .......
........................................ ... ........................ ...... ... ....
30
31
32
b
c
f
9
33
34
35
36
Titie
Check if
self-employed
Firm's name (or yours CHUBB AND ASSOCIATES
if self-employed). ~ P.O. BOX 6597
address, and ZIP code BARRI SBURG PA
17112-0597
:!1b
OMS No. 1545-0123
2001
865
25
7
3 629
566
170
645
581
629
535
300
574 300
173 472
0
675 729
1 010
34 557
258 244
512 708
2 966 855
662 774
774 949
-112 175
13 315
7 209
134
6 240
Preparer's SSN or PTIN
P00004835
25-1645828
EIN
Phone no.
'717-541-1860
Form 1120 (2001)
Form 8697
_ (Rev. March 1998)
Interest Computation Under the Look-Back
Method for Completed Long-Term Contracts
OMS No. 1545-1031
Attachment
Se uence No. 97
For the fiUn
Name
ROGELE
INC.
Number, street, and apl.. room, or suite no. If a P.O. box, see page 3 of the instructions.
1025 SOUTH 21ST ST. P.O. BOX 1757
Check applicable box to show type of taxpayer:
Corporath)n 8 S corporation
Individual Partnership
Estate or trust
Fill In Your
Address Only If
You Are Filing Thl
Form Sep~ralely
and Not With Your
Tax Return
City or town, state, and ZIP code
HARRISBURG
C If you were an owner of an Interest in a pass-through entity (such as a partnership or an S corporation) that holds one or more long-term contracts to which this
interest computation relates, enter the name and employer Identification number of the entity. Attach a schedule if there is more than one such entity.
A
B
PA 17105
Name of entity Employer identification number
mm~ Regular Method
1 Taxable income (or loss) for the prior year(s) shown
on tax return (or as previously adjusted) before net
operating loss or capital loss carrybacks (other than
carrybacks that must be taken into account to
property compute interest under section 460). See
page 3 of the instr. If you were required to fde Form
8697 for an eartier year, enter adjusted taxable Inc. for
the prior yaar(s) from line 3, Form 8697, for the most
recent filing year that affects the prior year(s) .......
2 Adjustment to Income to reflect the difference
between: (a) the amount of income required to be
allocated for post-February 1986 contracts completed
or adjusted during the tax year based on the actual
contract price & costs, & (b) the amount of income
reported for such contracts based on estimated
contract price & costs. Sea page 3 of the instr. and
attach a schedule listing each separate contract,
unless you were an owner of an interest in a pass-
through entity reporting this amount from Schedule
K-1 or a similar statement
...... ................
3 Adjusted taxable income for look-back purposes.
Combine lines 1 and 2
......... ................
4 Income tax liability on line 3 amI. using tax rates in
effect for the prior year(s). See page 3 of the instr.
S Income tax liability shown on return (or as previously
adjusted) for the prior year(s). See page 3 of the Instr.
If you were required to file Form 8697 for an eartier
year, enter the amount required to be reported on line
4, Form 8697, for the most recent filing year that
affects the prior year(s) .. . . . . . . . . . . . . . . . . . . . . . .
6 Increase (or decrease) in tax for the prior year(s)
on which interest is due (or is to be refunded). Line 4
minus line 5
...... ,. .... .....................
Date of each prior year to which interest
com utation relales:
(a)
Year ended
7 31 00
(b)
Year ended
7 31 01
(c)
Year ended
7 Interest due on Increase, if any, shown on line 6.
See page 3 of the instructions for computation
8 Interest to be refunded on decrease, if any, shown
on line 6. See page 3 of the instr. for computation
9 Net amount of INTEREST TO BE REFUNDED TO YOU. If line 8, column (d), exceeds line 7, column (d), enter the
excess. File Form 8697 separately; DO NOT attach It to your tax return. See page 4 of the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 Net amount of INTEREST YOU OWE. If line 7, column (d), exceeds line 8, column (d), enter the excess. Attach
Form 8697 to our tax return. See a e 4 of the instructions for where to include this amount on our retum . . . . . . . . . . . .. ..... . . . . . . .
OM For Privacy Act and Paperwork Reduction Act Notice, see page 6 of the instructions.
-486 447
-419 771
-719 274
-158 532
-1 205 721
-578 303
Form 8697 (Rev. 3-98)
:] I ~ c 7 ~ 00; <;
(/'\
LAW OFFICES
REILLY, WOLFSON, SHEFFEY,
SCHRUM AND LUNDBERG LLP
Frederick S. Wolfson
Timothy D. Sheffey
Loren A. Schrum
Paul A. Lundberg
Paul C. Bametzreider
Harry W. Fenton
Michelle R. Calvert
Colleen S. Gallo
Greer H. Anderson
David J. Tshudy
1601 Cornwall Road, Lebanon, Pennsylvania 17042-7406
(717) 273-3733 Fax (717) 273-1535
rwssl@leblaw.com www.leblaw.com
Branch Office:
112 West Main Avenue
Myerstown, PA 17067-1019
(717) 866..9095
Fax (717) 866-9160
October 10, 2007
James T. Reilly
(1964-2000)
Attn: Register of Wills
Cumberland County Courthouse
One Courthouse Square
Carlisle, P A 17013
RE: EST ATE OF JUDITH A. MCCLURE
Dear Sir or Madam:
Enclosed please a check in the amount of $15.00 which represents the fee for
filing the Pennsylvania Inheritance Tax Return.
Please call if you have any questions.
Very truly yours,
REILLY, WOLFSON, SHEFFEY,
Sc. ~ND LUNDBERG LLP
PAL/bh
Enclosure( s)
cc: Christopher T. McClure, Co-Executor
Allison M. Lesher, Co-Executrix
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