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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) 10% 9% 8% 7% ----~------~__.~___~___~____~_____~__~________________ --n______n____n____n_ __n__~u_________________________________________.._ _ ____________n____ 6% 5% 4% Ii 3% 2% 1% 0% .1% -2% Q1m~~ ~~oo~ ~~oo~ ~~oo~ ~~oo~ Q1~OO~ '91 '92 '93 '94 '96 '96 '87 '98 '99 '00 '01 '01 '02 '02 '03 '03 '04 '04 '06 '05 '06 '06 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. 16% . Major Stock Market Indices .f>ercent l:;~i1I1I!IlFr()l1lf>rllvi()uslVI()l1t~l:;I()se(T~ree~'(earTrend).. 10% 6% 0% e6% -10% ;! ;! ;! ;! ;! ;! 1:1 ;! ;! ;! ;! 1:1 "' "' "' "' "' "' "' "' "' "' ~ "' .. .. .. l!: .. .. .. .. .. .. l!: .. <> <> <> <> <> '? '? <> <> <> '? <> <> <> <> <> <> <> <> <> <> ~ ,;, " " ,;, ~ "S " "- 1i > ~ Ii ,;, " " ,;, c '3 0. "- 1i > ~ Ii ,;, " " ,;, ~ ~ 0. 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", -\1\/ . -: n____ -- -1---.:::.---- -- . nn! -6.0% -10.0% ~~iq~~~i~~i~jii9~~~i~~q~~~i~~~~i~~9~jii~~~~i~~q~~i!~~~~~~~i~~ii~~~ ~:~8~~~:~:&~~~~8~!~:a:i~~~~o~~~:i~r~~~~O!~~~&:I~~:~o~~~:~:&~~:~8~~ I C=:J NASQ6.Q Index -+- Monthly %Change I 12.6'% 10.0% 7.60/Q 6.0% ,eo: 2.6% ~ .2.60/Q .6.0% -7.6% -10.0% .12.6% .16.0% 20.0% 16.0% .16.0%. -20.0% 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. 8.0% Civilian Unel1llloyment Rate (Per BLS) ---~~--~-------~---~---------~-_._--~--- 7.6% .. 4.5% .- . ... .. ~"_"" i-:-;'~';'~':_~',"_m. 4.0% .-....... ..~... ..... ..--.,.-.,.~.;.~.,.~.,-,..,.~.~.:~ . ..... ~........~...~.~,.......~.. . n..... .-- ....... ._.... ...---t...-. 3.6% ,': .. ... ... .---.._......._._~.-.,..,_..:.~.,-~.,-....!.;.!.,..,-~...~ ....... -"-"-o-:":'~':-"-"'-!-+T';"':""!';'-"'~' . ._n. .,.. "'"~''+,_,_.....'~''_~_''''''''''' ", . . 3.0'10 ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~mmmmmmmmmmmm888888oooooo~~~~~~888888aaaaaa~~~~~~~~~~~~ c ' '~II.' c ' '-,l; a. ' c ' '-,l; a.' c ' '~II.' c' '~II.' c ' '~II.' c ' . ~ a. . c ' '~II.' c ' '~II.' c ' '-,l; Q. , c ' '~II.' c ' '~II. . c ' . ~ a. ' c . '~II.' c ' '~II.' ~~!~&~~~!'&~~~!'&~~!!~&~~!!~&~~~!~&~~~!~&~~!!~&~~~!~&~~~!'m~~~!~&~~~f~&~~~f~&~~~f~&~~!f~&~ 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 ........ .-a::i O~) u.\:, .~ ~ ~. l:S:;i 15) .:::;:. I~ 1:S;:1 i~ ~ ~ c;::.~ """"""' 0 t:CI hJ:'::. ..;::s::. .::s;:. c:r.::..: Jf"-- =- ~ ~. .:s:,. .:s:;. .~~-..,. .-r~..:,'"':.~ "'* -- -- =', = ......... CL -. CO I:....) ::::::. 1(........11 f._ .=, = I::E:;:. (.1.1 :l- .:=u=. I.JC":. .~ ...... -=. .=-::. .:=: "'- R::r.::1I 0=. <I: ~. ~ I.... ::r: :>=:: ::; I- ~~ W o::LJI = --.0::::0 = e:. =>:::= ..-.:. ::>::= ~~ .- ""=' IL.L.B ~~ CL. - -'""- COl- e:. -=:J::: :::=-== --o:w= II-- 0::::. .~ .-{;'c c:::l.:....::l ~::::::: :~ :5 ;~ r::e __ "'=T :=z........ (-c. __ r,..!J co 1:J:. __ :z:: 0' 01::1: V crll--t:::_O- I ~eJl= ~~ ('..J I- UJ ......I r- r'- ~:c (..!I ....J -I .;'..J L:I ~.r''''' c::. 0 ~..-t ~~B~r'- s::: ;5 ':'..J (',.J (LI $13,862.84 Payments/Credits $-7,000.00 Balaner~TAL $6,862.84 1 : (; 6 C, :5 ,'4 6'72 (;n ~ 185' r'r-, t' \1 Aj 934 5 (. T r::- ~i" .) 535, 829 5 (:. ~ 672 CC 8G5 5 ., 252 r, .- , U \ '"r 504 00 - 8~-G CL 336 Of: .,. 504 00 -' l)i OOf {iC 84 0(1 .,. B4- GO ~ 1 J 176 00- lOB :j 1..176 00 .,. "!78 50 'T 1,606 5C ~ 8'19 or: .,. lj'I~'?O 00 ~- l:GCG n 1 7 ,? B 2 1. n r. j, !l~ ~ ~ PAYTOTHE ORDER OF CHRISTOPHER McCLURE 5016 KYLOCK RD. MECHANICS BURG, PA 17055 3-.50/310 2925 06-92 DATE ~ ~.'Z.ClClI. ~ 'vJ4:J..- D~ J.f---L ~ -4 ~ (...... ~.,.,------_.~ ! . I $1','0(..0. So I ~___~__,~.-Ji ~ DE>LLARS qJ~~:: ~~ WACHOVIA. Wachovia Bank, N.A. wachovia.com MEMO cN-~ M' ..1: 0 3 .000 50 31: .000 I; I.. I; 0 2 780 2111 2 g 2 5 1110000.0 I; 0 50.r' *031000040* 12/11/2006 6111856450 -------- ._-~.~_._....._----_..-._- --.------- -------------- - Th i s is a LEGAL COPY .0 f you r check. You can use it t he same way you wou I d use the or iginal check. .lI o CJ ru ...... CJ .-=iru r-"l rn ...... r'- ru r'- .-=i U') ru .-=i f'9 ::r- OO .lI0 f'TI Cl .-=i 0 ClCl ru 0 .-=i rn o .., I l'i""'- 5016 KYLOCK RO. Ii MECHANICS BURG, PA 17055 i,mom, ~~. ORDHR OF J ~ ~-~ :) - ~ as. s . f~ CHRISTOPHER McCLURE 06.92 3-50/310 2926 ~-.. B . ~C)C\. DATE J $: (.72.00 i! II- -. - _. -- -..- -...t ~ --~ .0. --- _uuLLARS l.U !:::':._ WACHOVIA Wachovia Bank, N.A. w8cl'lo..ia.com ~'r-(l- ~q2b ~ ,- =- ~- · I ~ ME:\IO .1:0:i .0005031: .000 (;1..1;02 ?BO 2111 1..':0:\ .0005031: .000 I; I.. 1;0 2780 2111 2 g 2 I; .1100000 b 7 200.1' CHRISTOPHER McCLURE 06-92 5016 KYLOCK RD. MECHANICSBURG, PA 17055 3-50/310 2928 DATE ~ CO t..ac> (.. ~ i PAY TO THE ORDER OF ~T~ ~~.~ I \~9.0() D,..,.c. -.l Ita 1= ------ DULLARS &l ::.::t......... DeIaIro..,BIid<. ~..411 WACHOVIA Wachovia Bank, N.A. wachovia.com /".-, ~ M' ---~------------- MEMO .;1: 0 3 * 0 0 0 50 :31: * 0 0 0 I; I.. I; 0 2 780 2111 2 g 28 l 0 0 000 .8 gOO n,1 , II! -~~ ~~ WACHOVIA ! Regular Checking 04 1000646027802 752 40 o 110 44,857 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 CHRJSTOPHER McCLURE 06-92 6'.)'8 K'fLOC~ HD "'ECHM~ICSBIJRC. PA 1 'l>>:i - ___-=-=--=...,::..,;o~.._...... .............,.....; .......-'->.............oa.-.,;.=o--4ao;,.. . .-.=--~- ~~. =-".:-. f'" . 2-aQ~ "''' I ~,;;':_~.~ '6 J-J--, ~ $' 7ii:.1';- : l ~ f.-...J--J. "L~I'~' . . - . . - 1 _ _ _ _ _ _ _ _ _ -"~ L~':--! _/~~"'.S 6l i::'."::" : !II "W"AC.BOVIA . W8anovra 6811K, NA .ll.C'Iu~aa.twm .-" CHRISTOPHER McCLURE..... ...""" 2 917 "EC~~~:.Kp:O.,,,," .~ t'J ~_:-J~..J"';"~-;':~'ijt:.'- t.......J#-.- s ~ ~~~ '?f] 1;;~tf,T. . 2914 t-....J-. t"AYWllIt ~~ ""'..", J $ &./0'7,1' i r..: }..t- . >--...I.. - II " l_v-._~~__"__~~~'E!.~LI.ARS III =-= ! . WACHOVIA .' WachOlda B.lnk, N.A. wl!;h_a tom wnkl_~ "'~~S....:...~~~n.~..._ .o.-i- ~ ~~ . 1:03~0005D3IaODO&I,&027a02" 2'H? "'OOOOIi~'H8'V REF#0350366060 PAID 11/22 ~03~OOOS03~'OOO&I,&02?602~ 2q~~ '0000013&10' ~"._~~~.. ~.~ 736.70 REF#0152989460 PAID 12/05 8697.89 CHRISTOPHER McCWRE ..... 110111 KY1.OCX RD. MECHANfCSSURG, p" 17055 1 't ~~J;.\t \~ ~ w.- i _ _ ..,-,....... )-..J-J. -;t-Jj .......( ~:~ ;- , 2iii WAC1!~':lA : WactHMa B.a."\k" NA .~JI.Cll,," ~ ~C7'\"" 1.-1 J1.- --4-..:l1~""""'-"" '....m 2921 D.,.. l>-h l. V'I" NII'/!10 2922 I $' iZ~ ~_~ -_ _- """OL1.,\R!> ~ :-== CtfRll;TOPHER McCWRE ...... ao16 KVLOCK AD MECHANICS8UAG,I='A t105l5 ~ C, ~ z,...(, t ~Att !~~_ ~_~________.__--' $.-\1'-,~~--: ~. .,.. _ r _ _ _ 1 Q~ f-...J-,J ~'- ~~---:--= "OLLAR' Iil =-= l.~= . -",-" t.II.Ml' Jtc.::h;:~~S'7~~.~-.l'1 ~...- r-\...J- ___ _.~ I:OH0005031:~OOObl,G.02?60~" ~'1Z2 ,-OOOOOL?1?6.- ~ '..-G- REF#0256154360 PAID 12/07 I:03WOOS031:1000&~b02?aD2" 2'121 "'0000032000.- _ _~..-::o ~ ---- ,........ 320.00 REF#0551763660 PAID 12/13 177.78 i , ~ rolllY'IO'n1J' O"'~IIUf l ' T. l T>wj ,~ --I. -,..------- ~ II WACHOV.lA " ;" ! wad'W:Ma Eknk, N.A. 'lI/lClWWlII.eDnl NU(Q A-r 11-. 'tJ.4.01 %.1<&., '&_....5.1'''1 I I:OUOOOSO~I:LOOObl,b02?BOan' 2Q21, CHRISTOPHER McCLURE ....., SOUl K'lLOCM RD MECHANICSBVAc,,'1I 11~ FI/\ c.....J. ~ REF#0656534360 PAID 12/15 CHFIISTOl'HER McCLURE 00,..82 . 60'. KVLOCK AD. MECHAN'CSBURO, PA 170S6 l,^y;,,~.. ~~" CADDO! ~ ~- - pj-.t7'- 1,1 . g WACHOvxA .~~=k.N.A .. .....,,, 2924 , "'''' ~ 4.z..... . I~ CHRISTOPHER McCWRE 00.12 8"lMID 2921 . ME~~~,Kp~D>'11OS5 ~ "b "lA6t. 1=;' :"f'.:t:'~ ." " n'~~'$~~:S~,5';-l . .......' L, J rl:..J::. $'" --.---- ! ." r-<- f____ ::....:.:..) , 6--' -J.. ,.. .~U.A.' /il !:ii:'.'::" , ~ . i;.~ooo~:,~,,~,;~~,,~ .: ~:J 1 $ 3S."\"'_ [)Ql.t^RS 63 e:.:: ..~t, I' H t.: : -='=.: oJ- --...v- ,-000000:15 '10_' 35.90 REF#045710B100 PAID 12/12 934.50 ......." :-:"0 2971 . ~... ~"rL:z.""C. I $:~-;..~_:=i BQLlhRS . fa e= "..:._.:.~>--~o "':03 ~ODOS031: ~OOO!;~GD2?aO 21~ .2Q?~. .". ..: ".. REF#0454892060 PAID 11/27 60.00 WACHOVIA BANK, N.A, , HARRISBURG MALL page 4 of 4 PAY TO THE ORDER OF 3-50/310 2932 ~ IL1."2.t<>...1.. CHRISTOPHER McCLURE 5016 KYLOCK RD. MECHANICSBURG, PA 17055 06-92 DATE ~'w~ F~~ ~-0 53$..50 SA a-J. -;;;;;-- EJOLLARS ~ :r..:z.F..1uIeI "'""00..... I~ ~ 10 ~z:~ WACHOVIA Wachovia Bank, N.A. wachovia.com ~~ M' li ~ ~ PAYTOTIiE ORDER OF MEMO PAY TO TIiE ORDER OF MEMO ---------------------------- MEMO I: 0 :) .0 0 0 50 :)1: . 0 0 0 b ~ b 0 2 7 B 0 2 III 2 '1 :) 2 IIi 0 0 0 0 0 5 :) 5 5 0 Il" .# CHRISTOPHER McCLURE 5016 KYLOCK RD. MECHANICSBURG, PA 17055 3-50/310 li i PAY TO THE ORDER OF ~ II o 06-92 2934 ~ \5 ,,0....<.. ~ DATE ~2-~ ~~~.. I $ i "i1~~?:S;M"' "'j , $'.0 - ...-..,,-- ....-...--. "..-, ~ ~ ~-~LLARS'~ e~=' ~:a= WACHOVIA. Wachovia Bank, N.A. wachovia.com u-J- Y-G- I: 0 :) . 0 0 0 5 0 :)1: * 00 0 b ~ b 0 2 7 B 0 2111 2 '1 :) ~ IIi 0 0 0 0 0 B 2 '1 50," M' ----------------- ~~ ~ ~4-.~ --~.. "1:" T, 0 ~~- l',rACH iVIA MEMO CHRISTOPHER McCLURE 06-92 5016 KYLOCK RD. MECHANICSBURG, PA 17055 3-50/310 2936 DATE ~ \5.~~ol.. ,10 ~ -;;;;;---- .0. _".- '"9OLLARS L!J ='...... I I , I I DL Wachovia Bank, N.A. wachovia.com 06172007 ~ ~ . 2 7 B 0 2111 2'1:) b ,"00000 b 7 200,1' CHRISTOPHER McCLURE 06-92 5016 KYLOCK RD. MECHANICSBURG, PA 17055 2938 ~ -1.2.z,opl,.. 3-50/310 DATE ~~ qt..h.hl ~~ -f:a-- ~.:: WACHOVIA Wachovia Bank, N.A. wacllovia.com $' 1~~'b'.'~ - 0. &e<:ur'RyF......... Dcn:LARS L!J ='....... ______~~::------- M' 2 '1 :) B.,' n [I [I [J [I B [I B 5 0 ,,' Il I-~ I: [I :) . [10[1 5 [I :)1: * 0 [lOb ~ b [I 2 7 B 0 2111 CHRISTOPHER McCLURE 06-92 5016 KYLOCK RD. MECHANICSBURG, PA 17055 3-50/310 DATE ~ 2940 z.~f. 2ooC. ffi ~ ~ PAY TO THE . ORDER OF I~ Lo().J~, '/~ ~ ~.;c., ~~~ WACHOVIA Wachovia Bank, N.A. wachovia.com zsz..OO --.l !!=- 100 - . D. Securllyh."".. ~LLARS ill =-:...... .. I MEMO I .: 0 :i . 0 0 0 5 0 :i': . 0 0 0 b ~ b 0 2 7 B 0 2 III L , G-L- ~ M' 2g~O ,I' 0 0 0 0 [I 2 5 2 0 0 ,I' CHRISTOPHER McCLURE 06-92 5016 KYLOCK RD. MECHANICSBURG, PA 17055 3-50/310 2944 ~ ~ ~ PAYTOTHE , ORDER OF DATE ~ 2Co .1:.<>0(., ~~ F ~ ~ G...-. o.-J ~ I<>"'~ $Pl.{ ,0 0 D. Sealnryf....... DOLLARS ill ~_ ~~ WACHOVIA (='{i Wachovia Bank, NA wachovia.com DL '-p-,~r, ;;1_"_I'_'~,t::~ ___ Ul...iJa H-JfJ!j,.;;;;- _ '~~ MEMO $5-8--4-,-t."'y-------------__ M' ,.: 0 ~ . 0 0 0 50 :i.: . ci d~.~iCb 0 2 '( 8 0 2111 2 g ~ ~ ", 0 0 0 0 0 5 0 ~ 0 0 ", CHRISTOPHER McCLURE 5016 KYLOCK RD. MECHANICSBURG, PA 17055 06-92 3-50/310 2948 ~~ 21,z,o(Jl.:, ! ~- , f.-1.-t~ ~ PAY TO THE ._~~ 5 ORDEROF ::""Jl f~! N '" ! [, 6 - C" J "A_~-~ I! ~~ WACHOvm. g . . Wachovia Bank, NA wachovia.com 01/02/07 B5343 0061 DATE % Ltc.. '0 0 , , ------------- o 6curIlyFul.".. DOLLARS ill =-_ [l9,:::J All "-iIl7 '~J-~CL- MEMO M' .: 0 ~ .0 0 0 5 0 :i': . 0 0 0 b ~ b 0 2 '( 8 0 2 III 2 g ~ B ,"OOOOD8 ~OOO,I' CHRISTOPHER McCLURE 5016 KYLOCK RD. MECHANICSBURG, PA 17055 06-92 3-50/310 2949 DATE ~ 2'1. -z..,." (. ,~ '0 :' ~ --r' -r I~~ -{~~ ;U~~ 1$ ;/'" ~..- ________ Ci. ....."..... ("''' ~OLLARS ill r>:::'"","",- ~~ WACHOVIA Wachovia Bank, N.A. wachovia.com oJ-~ M' 1 MEMO ,-n::l. lnnn r:n :J..- lnnn r , r n :! "l 1:1 n :!.._ , ,..,. ,.., I I CHRISTOPHER McCLURE 06-92 5016 KYLOCK RD. . MECHANICSBURG, PA 17055 3-50/319. . ~~965 ~ DATE ~ >.2,007 [ $ [~~i.~~~~.:::] ~ I~ PAYTOTHE Wi- ~ ORDER OF ~ ~ F;'" ~ fr-,. o.-J. '-Fo ~~ WACHOVIA PA Wachovia Bank. N.A. wachovia.com --...... .0. s.cwttyhal..... --nOLLARS L!J =',;,- 1:03 .000 SO 31: .00 Dl - . ~.. I'1J52D03 85342 0016 nf~' 7J. M'. ----$SDtDU---------------.------~ 78 0 2 III 2 9 I; 5 ." 0 0 0 0 0 5 0 1. 0 0 .1' MEMO 3-50/310 2966 ,~ \ I~ I~ I~ PAY TO THE ORDER OF ~ ~ o t; I! I! .\ MEMO 2780 2 I '1:03 .000 SO 31: .000 I; I.. 1;0 II CHRISTOPHER McCLURE 5016 KYLOCK RD. MECHANICSBURG, PA 17055 06-92 DATE h .s. 2cojr ,;" ~ P---1. ~ a"..." --J.. NO T- ,- Do -- - :='DOLLARS l!J :;::,,,,.... ~~ WACHOVIA Wachovia Bank, N.A. wachovia.com rF- )..0- '''M' I)' 2 9 I; I; l 0000 . (J 0 8 J 0 ,11/ '\, CHRISTOPHER McCLURE 06-92 5016KYLOCK RD. MECHANICS BURG, PA 17055 f PAYTOTHE ~ Sill iJl'.W~J ORDER OF V'-"- ~ ~.~ ~t: ~~ WACHOVIA Wachovia Bank, N.A. ' wachovia.com , .n .-.:. : (j..J.- ~ I MEMO . ---------------.---- M' ~:O 3.000 SO 31: .0001;1..1;0 2780 2111 291;8 ,"OOOOOClBL.OOl 3-50/310 2968 DATE-h 7 . 1.-c)'07 '&'1.00 ~OLLARS &1=;:= CHRISTOPHER McCLURE 06-92 5016 KYLOCK RD. MECHANICSBURG. PA 17055 3-50/310 2969 Nt::> ~ ------ croLLARS &1 l:=t'- o.lMsonlbo::k. Wachovia Bank, N.A. wachovia.com MEMO "' ~ _____~_________.________ M' 1:03 .000 SO :11: .000 b 1. bn ? ?Fln ;:Jill ;:J q C. q .. r-'\. r-'l r-t. t"""""I ,...., r-l ,..., . ,....... --. . *031318907* 12/18/2006 000000351700282 rhis is a LEGAL COpy of your :heck. You can use it the same 'Jay you would use the original :heck. *031318907* 12/29/2006 000000351700277 l1is is a LEGAL COpy of your heck. You can use it the same vay you would use the original heck. *031318907* 01/03/2007 000000351700227 his is a LEGAL COpy of your leek. You can use it the same 'ay you would use the original leek. ..1l o o ruru 'cO cOru r-'10 '0 ru['- r-'1r-'1 FlLI'J ['-1Tl 00 Iro cOO r-'10 1Tl0 r-'10 ITl o bd ..1l o o ru['- ,['- [f"'ru ruo '0 ru['- r-'1r-'1 FlLI'J ['-1Tl 00 [f"'o cOO r-'10 1Tl0 r-'10 ITl o bd ['- o o ru['- 'ru ITlru 00 '0 r-'1['- 0r-'1 FlLI'J ['-1Tl 00 [f"'o cOO r-'10 1Tl0 r-'10 ITl o bd CHRISTOPHER McCLURE 5016 KYLOCK RD. MECHANICSBURG. PA 17055 3-50/310 2933 0&-112 ~.\S 1-""<> .... . DATE ~ t ~ PAYTOTHE ORDER OF ~tI'l ~ ~ N~ 4_'~--J. " .,~ $,1.11.......0 ...... . .......... ,.,.. ~- ___:uDLLARS 1\ I~ - CJ. -~. L!J ~....kt~ D""' , ~ ,- j II WACHOVIA Wachovia Bank. NA. wachovla.com c~~- II! MEMO I: 0 3 .000 50 :II: . 0 00 b ~ I; 0 2 780 2111 2 g 3 1 ~ I: 0 :3 . 000 SO :31: . 000 b ~ b 0 2 7 8 0 2 II- 2 g :3 :3 ,''DODO . .7 bOOl" ;.;.a'll .. -~. - ~~...;..' CHRISTOPHER McCLURE 5016 KYLOeK RD. MECHANICSBURG. PA 17055 3-50/310 2937 06-92 ""- L-,,\ "L..u...~ta DATE~ Ii - .~ PAYTOTHE ~ \-Ir--., ORDBROF ~ I~ 0-<- 1A---I. ~. ~ !~ dm ~ - I $''''~:O 4\ .S- 6 .. ,So --J. ~ ___ t::J,.....,,_. _oOLLARS L!.l ~_ ","~CHOVL~ Wachovia Bank, NA. wachovia.com .. OJ-- "'r-a-.. .... I MEMO I --_._--~~---~-------- 1:03 1. 000 50 ~I: .000 b ~ 1;02780 211- 2g:1? ~ I: 0 :3 . 0 0 0 SO :31: .0 0 0 b ~ b 0 2 7 8 0 2 II- 2 g :3 7 1"0000 .08 .50,11 M~""- CHRISTOPHER McCLURE 06-92 501 6 KYLOCK RD. MECHANICSBURG, PA 17055 3-501310 2945 DATE ~~., ~~7 '2,.0"'(.. PAYTOlHE ~ I~ ORDER OF ---j Ii 6.~~,,~~ 1$ i,17c",0':.J. /~ ,~,~ -T<>~~O~LARS"ffi -~~. 1 , ,~ . ~ ""VACHOVIA Wachovia Bank, N.A. wachovia.com Cw-- ,\-(1_. HI' MEMO I: 0 :I ~ 0 00 50 :31: ~ 0 0 0 b L. b 0 2 780 2111 ~g~ 5 . .. ~ , , r"'\ ~ J'\ r- n .., .. , ,..... r"'"'"'I n,., I f'1 n .., ,., n,..... .., It. .., n I r- .1 ('I n rlill 1 , ,..,,., nil.. . -~~ ~~ WACHOVIA Regular Checking 05 1000646027802 752 40 o 110 46,001 - - ATTENTION CUSTOMERS: THIS PAGE IS BEING PROVIDED AS PART OF YOUR MONTHLY STA TEMENT 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. - 12/16/2006 thru 01/18/2007 .' ._ . 'CHIIISTOPHERMOcWflE".... .'. ......- "-""'~".2935 : ~~. :': ':~:'.t:':;:~~~'';~:;'::; ~>'~/...~..~.IS.~t:.: ~;:.. 1.=;II',F'~',~~' ....... ,.-" ~""I$;i7\l..so~ !: .~. ~-;;:~.~t.:..:. " .::~:f~7.~:7 -~.:=:=..~. "..--'~ :~..:'~ ~-_:":~"::~:"-~ '~:OHOD050~laOOOG."100 nflo ~~ . ~'B5':':"~ '::.'-:-"'.:' .. """ -.' -;::'. . CHRIS'TOPHER M'cCWRE ......... ".. .. 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I 'I J'A'I'lOna;; u.......J,.. r - _-L- lJ-L.. ....,..... .. - ~ ~:T ----.J $ i:..... I If-- ;-.....;...J -r-:r:. --.t -f.; -----__ u .D. ....- . ~ -====::-uu1..L.ARS w 1iliI"'.._ ! II '\\"ACHOVIA . Wadll:MiI, Bank. N A. ..CIID,"ccom MUIO f1C'1I'" 11.. 2.-1/1.. r>-J-; Jol, ...., tt"n.. ---~~ ._-~ .:03 AOOO 5D 3': AOOO&" & 0 2 ?80 2n' c 'I L, 2 ~'DDOOD 3 aDOD," -..-we..__4.....--:=r~___-.-.-....__...__...._____~~~ REF*0853587040 PAID 1/02 786.25 REF*0354324220 PAID 1/03 320.00 - ". .... CHRISTOPHER MCCWRE . ..... ........ ~ 2947 . l!i01" KYLDCK RD. " .' -. ~fIQ,,^'~ -". ..... ~'l.,...t. I ~~ ':': r ..t~' B-~k;;.:( - -".';-. I' $~ L ~o(..!>~ I ., 0....."J:1---J. ~)-..J;..J.'; -J. I~: ~ '::~:R!l tJl a= I.~ OVXA. -".... - '. ,- I i:lliI ~""'I<A.' - . .. '. '. .. ." . . - . ~':-""": ~"... ~:.:~.::_<':::~=::~:-(}.J-~.. '-': '-J:03 ~000503IaoOOr...&0 HOD ~., ..a'l'" -:: - ;'. .. - CHRISTOPHER McCWRE ft82=:fIJ,:~~~o"$&".&.Z..g951l8.S 6011 KYLD~ RD. .."., .. Ptr'l':'"''''~ IIEC1lANlC88UA<l.'A "... 11...- .. ~ ioo DATt--F----d .. I ~.::'. '.....r.~..;")_.... ~ $ 0 i'SoI :1'.. 1 0.... j......J....... U; .-. -..( ~~. ---~LLA1lS ID s:= ! II WACHOVIA 1 ==.:.:'~.NA .....L.L-~ ......,~M. ..'t"S-"1$P1'Iu>f.. _.._..:::?::... _.. _... 0__ _..-.!'" 1:0 3 ~ooo 50 ~I: &0001'.1, 1'.0 a ?flO c" 2'l50 ...DOOOO. 5 HIU .::-.-~~..~-._..._~..-....~""- REF*0354456780 PAID 1/03 1606.50 REF*0254058850 PAID 1/09 151.38 I I ~~JrE c.-.........t CJJ... 1 ~. '"-1. .-J. of- - ! II 'WACHOVIA. ~ WIdlQri&8anI;. NA __howo.co", MDO ~ fh..,Stf1 ~1.1JS.'\."".1 ~03~OOOSO~~~DDD~"~Oa?802" c'ls~ I $.'~''":''i-_ :! ~u.""" CJ a,,;:, -. - .. "; _ '.. "c' 'CHRIS'TOPHEII McCWRE OMZ '_:' ..~.~. .'. _ 2967 I-C.:: ~>:~~7~P~~'~j\~':.~:.. ._~~.:i_:i'S =':',.~~ I ~.;"", .r..-t. ~~.: -:.~. '-. ~ $. I.."...... '1. I 0 'If-._ . I t ....' '".' --=z..'.- , . , . - .....r~ ~ ~ - - P.J -...L.,-:;' ~LLAR9 M a"= 19~'..: :" ..' J ~'B&nk.N""'~ ." .- =.....:;_............... - ~. ,'.. '-6-L~:': .1:03 ~0005031:l.000l!.I,l!.Oc?80211' c.2q~?- .'..~ ._..: CfiRlllTOPHER McCLURE ..... 110'. IM..DCtC N) MECI1IVocSBURG, PI. 17DGCi >-M~ 2952 "". 'Y-'J '3.~-7 c:0-- "'\..0.- ...OOOOOOb '10 ?~. REF*0950424020 PAID 1/11 69.07 REF*0757819750 PAID 1/10 1470.00 WACHOVIA BANK, N.A. , HARRISBURG MALL page 5 of 5 , , CHRISTOPHER McCLURE 5016 KYLOCK RD. MECHANICSBURG, 'PA 17055 ~.T,_>..--._,~- -t-"\._~.;_~ '3~:50/~W.'" . 2970 06-92 DA~-h o "boo-"7 () . I . ~ i PAYTOTHE W. C!:>~...... r~, .1 f---.J.. rk . ~__. ORDER OF C>'Y"C. ~. -J. {";; ____ v---~--....,.---,-~~ $, t I 11.000,00 I L..-",~i,,,_____,..,~,,_~. .a _........ =-90LLARS l.!.J =:0"'" _-."... '''''T. ...~- n'ACHOVIA Wachovia Bank; N.A. wachovia.com . ~ MEMO G-J-- / . -- -11:0:] .00050 :]1: ~OOO b '-t bO 2 780- 2Ii~~g7Glll'ODOO 100000." ^' \ , ( f' J . 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 () (-') ....~'\ 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 (') /~' I ) 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 () (~ \ ';'j 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 ( (-', , ) \, ." 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 iii c: .2 1) ::J "'C Ql "'C c: o III c: .2 ~ ~ .. .E III c: o :;:l (J 2 .... III .5 Ql Ql ~ III c: o :;:l (J ::J "'C Ql C J!l c: Ql E >. III C. "'C c: ns )( III I- Sign Here Paid 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 E o (J .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 '<:t 0) 0 Q) I"- OJ ,.... C') ro () CL 0) W {I)- {I)- U') U') U') U') Lf) U') Lf) Lf) 0 r-- r-- r-- r-- r-- r-- r-- r-- r-- r-- 0 CY\ CY\ - r-- r-- r-- r-- r-- r-- r-- r-- r-- I.D Lf) () :J rl rl rl rl rl rl rl rl "" rl 0 '"0 0l 0) 0 {I)- {I)- "0 :>-< :>-< :>-< :>-< :>-t :>-t :>-< :>-< :>-t ()I Q) ::r: ::r: ::r: ::r: ::r: ::r: ::r: ::r: ::r: :E !E ..c Q) CQ CQ I CQ I I I I o:l CQ C'Il Q Q ...:! Q ...:! ...:! ...:! ...:! Q Q :2 ~ 0 0 ........ 0 ........ ........ ........ ........ 0 0 0 0 0 U) 0 U) U) U) U) 0 0 N 0l 0l 0l 0l r::: ~I 0 0 0 0 0 0 0 0 0 0 ~ 0 U') Lf) U') U') Lf) Lf) U') U') Lf) Lf) 0 Lt) r::: CY\ I.D "'" CO 0 0l I.D U') 0l r-- CY\ C'Il .... ('f) I.D CO I.D "" rl r-- CY\ ('f) "'" Lf) ~ 0 r-l CO 0 0l rl U') r-- CO ('f) CY\ (J) I- LLg. 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E Ow "'" U') rl ('f) (Xl 0 co CY\ U') I.D ... rl rl 0 u.. M ..... - r::: Q) E >. Q) t - ~.~ I:il C'Il - 0 en el- p:: E-< 0... ('f) U p:: CY\ p:: :x: ril ........ ril :z; p:: p:: p:: U) p:: p:: H r::: 0 I:il p:: 0 H I:il I:il ~ ~ 0 0 0 ~ I:il ...:! p:: p:: p:: (f) z :0:; If) p:: AI ::r: 0 0 .~ ...:! 0 :x: u ...:! :>-< ...:! :> :>::: <.D U) p:: ...:! I:il AI 0 p" ril U W 0 u p" p" :x: ~ :x: ::r: H Q) U) "" :x: Q I:il I:il ril U b -l 0 ... W <.D ~ Co ril ril p:: ril ril CQ ~ co Q) Q ~ 0 ~ Q Q If) (9 ~ T- o ril E-< Q rx. p:: u p:: 0 I.D E-< 0 I"'-- f3 ... u 0 p:: 0 0 :E 0 0 0 0 a: m ..!!! p:: :>-< 0 co 0 4< l'J rx. 0l 0 E-< L{) ril 0 4< CY\ 0l 0l ~ W :2 :E E-< rl 0l 0l rl I '<:t I Cl ('f) 0l "'" 0 0 0 rl 0 N C') >- Q) I.D I.D I I I 0 0 0 I rl T- N LL 0:: CY\ CY\ ~ ~ ~ 0l 0l 0l ~ ~ 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 . 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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&lt\ 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 . 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"N is C " ~ CD ... .,.g ...... ~E_t;o oEo.. ~ II(/) Z ... N ;i C ... ., .. N": ~~"i:a :;cilO..: :;!:;,.... ~~.;..... uCU ..,~ gc !::!S ... ... ..,;:: j::: '" u 11-0 l\l 0 ","C gl ...I 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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('II 0r- +-' I: Q) E >- Q) t::(]) +-' o:l co (]) +-' 0- 0 en el- ~ E-i 0- M U 0"\ 0:: :x: .......... ril ~ ~ ~ (j) ~ ~ I: 0 ril ~ 0 H ril ril :3: <.) 0 0 ~ ril H ~ ~ ~ (j) z :;:; lJ) ~ p., ::r: 0 0 co ....:l 0 :x: u H ?-l H :> LD 0(3 CJ) ~ H ril p., 0 p., ril W 0 Q) p., p., :x: ~ :x: ::r: .....J 0 I- CJ) <:t' :x: 0 ril ril ril U W co N Co Ii1 ril ~ ril ril H co - Q) 0 .::e 0 I-J 0 0 U) .::e <.9 ..- ..- C Ii1 E-i 0 ~ ~ u ~ 0 E-i 0 r--. C"? I- U 0 ~ 0 0 ;:'8 0 0 0 Q) - ~ ?-l 0 ro 0 ~ CJ ~ N E-i 0::: r--. ~ LD Ii1 0 ~ 0'1 N ..- W ;:, ;:'8 E-i rl N N rl ~ I >- C) M N <:t' 0 0 0 rl N C"? Q) I.D I.D I I I 0 0 C> I ..- N LL 0:: 0"\ 0'1 .::e .::e .::e N N N .::e 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 "I:t (j) 0 Q) I"- 0) ..- C\J rn u ...... a.. Q) C/) {j}- {j}- 11") 11") 11") 11") 11") 11") 0 0 "" 00 ("\J r- r- r- r- r- r- 11") 11") .-l .-l 00 ..... r- r- r- r- r- r- 0"\ 0"\ .-l (Y) 0"\ U :J rl .-l .-l .-l .-l .-l ("\J ("\J \D "0 Q) rl 0 {j}- {j}- " Q) :>-< :>-< :>-< :>-< :>-< :>-< :>-< :>-< :>-< :>-< !E ..c ::c: ::c: ::c: ::c: ::c: ::c: ::r: ::r: ::r: ::r: ..... o:l o:l I o:l I I I I I I ca Q) Q Q H Q H H H H H H ::l :E 0 0 "- 0 "- "- "- "- "- "- a 0 0 {fJ 0 {fJ {fJ {fJ {fJ {fJ {fJ s::: ("\J ("\J ("\J '#. ~I 0 0 0 0 0 0 0 0 0 0 0 Lf) Lf) 11") Lf) Lf) Lf) Lf) 11") Lf) Lf) It) s::: ca 0"\ \D "" 00 0 ("\J \.0 Lf) 0 0 0 .s::: ... (Y) \D 00 \.0 "" .-l r- 0"\ "" 00 0 .... 0 .-l 00 0 N .-l 11") r- oo .-l rl 0 f u..... o5Q Q) "" 0 N 11") ("\J "" r- N .-l (Y) <:1' 0 0"\ (Y) (Y) (Y) (Y) "" (Y) (Y) "" :liE ~O (Y) " lD t/) Q) ...... m {j}- {j}- s:: ;:) Q) 0"\ \.0 "" 00 0 ("\J \.0 11") 0 0 0 ~ (Y) \D 00 \.0 "" .-l r- 0"\ "" 00 0 E ... rl 00 0 C\J .-l 11") r- oo .-l .-l 0 Q) OC/l Q) om ..... "iii <:1' 0 C\J 11") C\J "" r- C\J .-l (Y) <:1' ...... ,-m C/lro 0"\ (Y) (Y) (Y) (Y) "" (Y) (Y) <:1' CU c..Q) OlD (Y) ...... 1.5 () U) CDm N::l {j}- {j}- - Q)a:J ~ s::: C'#. 0 0 0 0 0 0 0 0 0 0 Q) :.:; 0 0 0 0 0 0 0 0 0 0 C/lQ) "C > :JC/l 0 0 0 0 0 0 0 0 0 0 Q) lD=:> 0 0 0 0 0 0 0 0 0 0 ~ .-l rl .-l .-l .-l .-l .-l .-l .-l .-l LL ca c.. \.0 \D 0"\ 00 0"\ 0 .-l .-l 00 ("\J CQ) 0"\ 0'\ 0"\ 0"\ 0"\ 0 0 0 0"\ 0 N 0- U "- "- "- "- "- "- "- "- "- "- CD Q)O_ 0"\ <:1' .-l "" .-l 0 00 00 00 00 It) .....~ rl ("\J .-l 0 0 .-l C\J .-l .-l 0 ''It roQ) "- -...... "- "- "- "- "- "- "- "- E OC/) <:1' 11") .-l (Y) 00 0 00 0"\ 0"\ N '- .-l .-l 0 l.L. N "l"" .... s::: Q) E >- Q) tQ) .... o:l ca Q) .... 0- 0 (J) el- 0::; E-< 0::; (L (Y) u W en 0::; X Q "- W :z: 0::; 0::; 0::; U) 0::; 0::; H C 0 W 0::; 0 H W W Ii., (j 0 0 :z w H 0::; 0::; 0::; ::r: :; 11") :z: 0::; 0.. ::c: 0 0 E-< Z ca H => 0 X U H :>-< H F't; "I:t 'u CJ) 0::; H ~ 0.. 0 0.. 0.. W 0 f 0.. 0.. X :> :x: ...J 0 CJ) "" :x: Q W ~ :z ~ :z: W CO ~ c.. ~ w 0::; w ~ 0 H CX) Q) Q F't; 0 'J Q 0 U) F't; CD 't'- 't'- O ~ E-< Q Ii., 0::; U 0::; 0::; CJ) E-< 0 I'-- C"') '- U 0 0::; 0 0 :a: 0 w H 0 - 0::; :>-< 0 00 0 Ii., 19 Ii., E-< :z: E-< 0::: 0) I"- ..!!:! 10 ~ 0 Ii., 0"\ N :::> 't'- W ::s :a: E-< .-l C\J C\J 0.. 0 "I:t I C) (Y) C\J "" 0 0 0 :a: 0"\ N C"') >- Q) \.0 \D I I I 0 0 0 0 0"\ ...... N U- n:: 0"\ 0"\ F't; F't; F't; ("\J ("\J C\J U .-l 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. 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I I 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- ffia :;;- G~; ~~ <~l ...~! :~ ei.:! '" ~ :5' ! u..-'.;J '" :!! l;;~ ~a: ....'" ... Sf- iIffii ~ !ll; &!f- ;J << 'il! 0 oDJ ~ " 0 11 ~ ~l 5 ,...; -' Sf-f-f- u' i3 ,...~ ~ ~+---+---+- ~ u ~; \~~ ill. I ~.~ ~;i ~Ig f-c- cl!! OW ii!-' ~li o u Wc.... 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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 (~-. !,~-~,' --, r~...: o N Serving our clients for 60 years f 'I', ~ ~ g ~ "Ig ~ N ~ ~O ::::g ill,~ g g ~ x. II I f;h N (3 <"l~ t--~ ~- 0 ~ t~ ~ [ ~ \.,' 'j' l1-~8 "',s.. ,::.1 ~ ~ ....l -.:'&'n... 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