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HomeMy WebLinkAbout02-0585 tZ{6-'lC) ~ COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE DEPT. 280601 HARRISBURG, PA 17128-0601 REV-1500 INHERITANCE TAX RETURN RESIDENT DECEDENT OFFICIAL USE ONLY ~.. '7 / - C __SLS. "-"1lER FILE NUMBER ~/-.lL~ ~ YEAR DECEDENTS NAME (lAST, FIRST, AND MIDDLE INITIAL) SOCIAL SECURITY NUMBER I- Z BONANDUCCI, ROBERT 126-36-9002 W DATE OF DEATH (MM-DD- YEAR) DATE OF BIRTH (MM-DD-YEAR) THIS RETURN MUST BE FILED IN DUPUCATE WITH THE C W 09-22-01 08-13-46 REGISTER OF WILLS () W (IF APPLICABLE) SURVIVING SPOUSE'S NAME (LAST, FIRST, AND MIDDLE INITIAL) SOCIAL SECURITY NUMBER C BONANDUCCI, VIRGINIA w IX] 1. Original Return 0 2. SUpplemenlal Rotum 0 3. RemainderRetum{dateofdealtlpriort012-1J..82) '"' ""en 0 4. Umned Estate 0 4a. Future Interest Compranise (date of d&8lliafter 12.12-82) 0 5. Federal Estate Tax Return Required "0:,, w"-" IXI 0 --.Q. B. Total Number of Sete Deposn Boxes ,,00 6. Decedent Died Testate (Allach copy of ~~ 7. Decedent Maintained a Uving Trust (AIIachcopy of Trust) ,,0:-' "-CO "- 0 9. Liligation_sRe<eived 010. Spousal Poverty Credit (date of death btltWeen 12-31-91 aOO 1-1.95) o 11. ElectionlotaxunderSec.9113(A)(""""S<M) <t >- 'll'1!S,$ECTIc.l.!-I.""OsTaE;,C(jMpl1!$'tED,,,,j!.j!.C(jFlFlESPONOENCE,~NO,C(jNFIQeNTlAL'T.<J;XiINFORMAltIONSHc.lOLDl!EOIFleC:YJ;p,!l1o; z NAME COMPLETE /MILlNG ADDRESS w Cl VIRGINIA BONANDUCCI 2219 BRIGADE RD z 0 FIRM NAME (If AWlcable) "- ENOLA, PA 17025 '" w 0: 0: TELEPHONE NUMBER 0 717-728-0731 " 1. Real Estate (Schedule A) (1) OFFICIAL USE ONLY 2. stocks and Bonds (Sched~e B) (2) ., 3. Closely Hold Corporation, Partnership or S~e-Proptietorship (3) , 4. Mortgages & Notes Reoetvable (Schedule D) (4) ( , 5. Cash, Bani< Deposits & Miscellaneous Personal Property (5) Z (Schedule E) 0 6. JoinUy Owned Property (Schedule F) (6) 314,109.00 !;( o Separate Billing Requested ..J 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (7) 268,573.50 ::::l ,~ (Schedule G or L) '- l- ii: B. Total Gross Assets (total Lines 1 - 7) (B) 582,682.50 <( () 9. Funeral Expenses & Administrative Costs (Schedule H) (9) 1,782.00 w a::: 10. Debts of Decedent, Mortgage Uabililies, & Uens (Schedule I) (10) 72,209.00 11. Total Deductions (Iotal Lines9& 10) (11) 73,991.00 12. Net Valueol Eslata (line B minus Line 11) (12) 508,691. 50 13. Charitable and Govemmental BequestslSec 9113 Trusts ftJ' VIl\icI1 an election to tax has not been (13) made (Schedule J) 14. NetValue Subject to Tax (Une 12 minus Line 13) (14) 508,691.50 SEE INSTRUCTIONS FOR APPLICABLE RATES Z 15. Amount of Line 14 taxable at the spousal tax 0 . 508,692 0 0.00 !ci: rate, "'transfers under Sec. 9116 (a)(1.2) X .0_ (15) I-' 16. Amount of Line 14 !axable at lineal rate X .0_ (16) ::::l D.. 17. Amount of Line 14 laxable at sibling rate X .12 (17) :i: 0 18. Amount of Line 14 taxable at ootlater~ rate X .15 (IB) () >< 19. Tax Due (19) 0.00 ~ 20.0 I CHECI(HE;REIF YbU ARE REQUESTING A REFUND OF AN OVERPAYMENT I ,. > BE SURE TO ANSWER ALL QUESTIONS ON REVERSE SIDE AND RECHECK MATH < < STFP.AA2{\21F.\ r."cedent's Complete Address' -f':. . :€iTREET~RESS 554 0 WESTBURY DRIVE em ENOLA I STATE PA I ZIP 17025 Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit 8. Plior Payments C. Discount (1) 0.00 Total Credits (A + 8 + C) (2) 3. Interest/Penalty if applicable D. Interest E. Penalty Total Interest/Penally (0 + E) (3) 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 (4) 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) 0.00 0.00 A. Enter the interest on the tax due. (5A) 8. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (58) Make Check Payable to: REGISTER OF WILLS, AGENT 0.00 PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS No [XJ [XJ [XJ [XJ [XJ IXI contains a beneficiary designation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... . . . . .. .. . . . . . . . . . . . . .. IXI 0 IF THE ANSWER TO AtN OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. Under penalties 01 perjury, I dedarethat I have examined this return, including accompan~ng schedules and statements, and tolha best of my _edge and belief, ,~true, oorrectand complete. Oed,ration of preparer other than Iha person,l representative is based on all information of >M1Ich preparer has any ....1ed9<. SIGNATURE P ON RESPONSIBLE FILING RETUR 1. Did decedent make a transfer and: Yes a. retain the use or income ofthe property transfenred; ........................................0 b. retain the light to designate who shall use the property transfenred or its income; . . . . . . . . . . . . . . . . . .' 0 c. retain a reversiona<y interest; or ....................................................... 0 d. receive the promise for life ofeilher payments, benefits or care? ............................... 0 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receilling adequate consideration? ..................................................0 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? . . . .. 0 4. Did decedent own an Indillidual Retirement Account, annuity, or other non-probate property which /' DATE 'rtI'~.f) ADDRESS VIRGINIA BONANDUCCI, 2219 BRIGADE SIGNATURE OFJREPARER OTHER THAN REPRESENTATIVE /. J~ ADDR SMO RD, ENOLA, PA 17025 R, SMITH & ASSOC, 2000 TECHNOLOGY PKWY, MECHANICSBURG, PA DATE (p -.,20 .OJ.... 17050 For dates of death on or after July 1, 1994 and before Janua<y 1,1995, the tax rate imposed on the net value of transfers to or for the use of \he surviving spouse is 3% [72 P.S. S9116 (a) (1.1) (i)]. For dates of death on or after Janua<y 1,1995, the tax rate imposed on the net value of transfers to or for the use ofthe surviving spouse is 0';' [72 P.S. S9116 (a) (1.1) (ii)]. The statute does not exemot a transfer to a survilling spouse from tax, and the statuto<y requirements for disclosure of assets and filing a tax return are still applicable even if the survilling 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 0% [72 P.S. 99116(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 4.5%, except as noted in 72 P.S. S9116(1.2) 172 P.S. s9116{a){1)). The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12% [72 P.S. 99116(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 biood or adoption. STFPA42Q21F.2 REV_1S0S EX + (1-97) (I) . COMMONv.EALTH OF PENNSYLVANIA INHERn"ANCE TAX RETURN RESIDENT DECEDENT SCHEDULE C-1 CLOSELY-HELD CORPORATE STOCK INFORMATION REPORT ESTATE OF ROBERT BONANDUCCI FILE NUMBER 1. Name of Corporation AIRE DESIGNERS, INC Address 2219 BRIGADE ROAD City ENOLA State PA 2. Federal Employer I.D. Number 23 - 2 4 513 4 5 3. Type of Business SALES OF AIR FILTERS State of Incorporation P A Date of Incorporation 0 2 / 03 /1 9 8 7 Zip Code 17025 Total Number 01 Shareholders Business Reporting Year CALENDAR 1 ProducVService SALES 4. TYPE TOTAL NUMBER OF NUMBER OF SHARES VALUE OF THE STOCK Voting' Non-Voting SHARES OUTSTANDING PAR VALUE OWNED BY THE DECEDENT DECEDENT'S STOCK Common VOTING 520 1 520 $ 139.361 Ptelerred N/A N/A N/A N/A $ N/A Provide all rights and restrictions pertaining to each class 01 stocl<.. 5. Was the decedent employed by the Corporation? !ZJYes DNo Ilyes, Position OWNER/ SALESMAN Annual Salary $ 11 7 , 997 Time Devoted to Business 1 0 0 6. Was the Corporation indebted to the decedent? 0 Yes li yes, provide amount of indebtedness $ 7. Was there life insurance payable to the corporation upon the death 01 the decedent? 0 Yes !ZJ No II yes, Cash Sun-ender Value $ N / A Net proceeds payable $ Owner of the policy N / A 8. Did the decedent sell or transfer stock of this company within one year prior to death or within two years ~the date of death was prior to 12-31-82? DYes !ZJNo If yes, DTransfer DSale Number of Shares N/A Transferee or Purchaser N / A Consideration $ !ZJNo N/A N/A N/ADate N/A Attach a separate sheet for additional transfers and/or sales. 9. Was there a written shareholder's agreement in effect at the time of the decedent's death? If yes, provide a copy of the agreement. 10. Was the decedent's stock sold? DYes IXI No II yes, provide a copy of the agreement of sale, etc. 11. Was the corporalion dissoived or liquidated after \hedecedent's death? DYes lX)No If yes, provide a breakdown of distributions received by the estate, inclUding dates and amounts received. DYes IXINo 12. Did the corporation have an interest in other corporations or partnerships? DYes !ZJNo If yes, report the necessary infomation on a separate sheet, inciuding a Schedule C-l or C-2 for each interest. THE FOLLOWING INFORMATION MUST BE SUBMITTED WITH THIS SCHEDULE A. Detailed calculations used in the valuation of the decedent's stock. B. Complete copies ollinanclal statements or Federal Corporate tncome Tax retums (Fom 1120) far the year of death and 4 preceding years. C. If the corporation owned real estate, submit a iist showing the complete address/es and estimated fair market value/s. if real estate appraisals have been secured, attach copies. D. Ust of principal stockholders at the date of death, number of shares held and their relationship to the decedent. E. List of officers, their salaries, bonuses and any other benalits received from the corporation. F. Statement of dividends paid each year. Ust those deciared and unpaid. G. Any other infamation relating to the valuation of the decedent's stock. S'TFPA42C21F.o ESTATE OF ROBERT BONANDUCCI PA REV 1500 SCHEDULE C-l ATTACHMENT STATEMENT The decedent was the sole shareholder of Aire Designers, Inc. The corporation was a two-employee entity formed for the purpose of servicing sales contracts and for sales of air filtration systems specifically designed for hospital use. The amount of income generated by corporation was very heavily dependent on the sales efforts ofthe decedent. The decedent had specialized expert industry knowledge that cannot be replaced. He was frequently used as an expert witness due to his thirty years of specialized experience. The decedent's spouse/sole beneficiary/executrix has no clear idea of whether or not there is any value to the corporation without the decedent's involvement. The fixed assets left in the corporation are largely comprised of old testing and office equipment, old office furniture and fixtures, a 1995 vehicle, and minor improvements made to accommodate the shareholder's office area. These assets are largely depreciated as of the date of death. It is near impossible to determine the market value of the corporation as of the date of death. Currently, there are only two accounts that have decided to temporarily stay with the company and the beneficiary is researching the possibilities of continuing to service these two accounts. There is a strong possibility that the two relationships will not continue beyond the next twelve months. Because these two accounts have continued after the date of death, we feel a value of $0 would be inaccurate. We therefore have used the net book value as of the date of death as the value for purposes of the Rev 1500. In support of these numbers, attached, please find tax returns for the years 1998 through 2000 as well as an un-audited, un-reviewed, client prepared balance sheet as of the date of death showing the net book value of$139,361. ftEV.,5O!aF,X-I'.9fl(11 ca.tdClfM{ALTlt OF PENNS'I'I.\ANlA IHHEIUTANCE TAX RETUlt" RESUt4T OEet.DEMT SCHEDULE F JOINTLy..oWNED PROPERTY ESTATE OF ROBERT BONANDUCCI FilE NUMBER If 1ft.....lQI mld.)omt wtthin OM ,..of thI dlcedlnt's _ of dNlh, it mutt bt reponed on Sd1edul. G. SUINMP<<i..(Jt(T TENANT(SI NAAlE ADO""SS RElA~ TO DECEDENT A. VIRGINIA BONANDUCCI 2219 BRIGADE RD ENOLA, PA 17025 SPOUSE B. c. JOIi'ffi y.oWNED PROPERTY: <ErlER """' 0E5CPJPl1OM Of I'RClf'eUY %OF U.TE OF CEATH IT9l fOllJOlNT ""'" lrd.I5e.,..oI firwQII~n bftlCQll,JtlVJitlel'or....~1'lIIDIr. !)\TE OF OfATlt CfCaS ....\1101 ........ re...-r .... AIlICtldled lor,.,........ \N.\IE 01 ASSET lMml<S( OEta:lEKiS IKtEREST 1 A. 74 DREXEL PLACE 75,000 50 37,500.00 LOWER ALLEN TOWNSHI P CUMBERLAND CO, PA TAX PARCEL # 13-25-000a002A UNIT L74-1 2 A 1749 WEATHERBURN DRIVE B3,400 50 41,700.00 LOWER ALLEN TOWNSHIP, CUMBERLAND CO, PA TAX PARCEL #13-25-0008-233 3 A 58 DREXEL PLACE 83,BOO 50 41,900.00 LOWER ALLEN TOWNSHIP CUMBERLAND COUNTY, PA TAX PARCEL #13-25-0008-002A UNIT L58-1 4 A PNC BANK PREMIUM PLAN MONEY MARKE~ 76,018 50 38,009.00 ~ ACCOUNT #50-0206-7471 5. A PRIMARY RESIDENCE @ 310,000 50 1J.55,OOO.00 5540 WESTBURY DRIVE ENOLA, PA 17025 TOTAl (Also enter on Ii", 6. ROC3I>itulation) S 314,109.00 S~~"''''2\~i~\F It) (If more space " r1l!O!dOll. insert o:tOilional sl\eels of the...". ~,.) rOOd 2~~t-8~S-LrL ~a+Q~~O~S~ ~ 4+~wS ~a~owS ~90:ot 20-02-unC REV-1510EX + t1-91){1) COMMONWEALTH OF PENNSYLVANl'I INHERITANCE TAX RETURN RESIOENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY ESTATE OF ROBERT BONANDUCCI FILE NUMBER This sd\e<jule mIl!rt be compIele<l and tiled n \he answer to any of questions llhrough 4 on the reverse side of Ihe REV-I500 COVER SHEET is yes. DESCRIPTION OF PROPERTY %OF rrEM I~LCE 1le tW.tE OF ll-E TRANSFEREE, T1-fIR RELATIONSHPTO lECEDENr PNJ1le 1)ll.1E DATE OF DEATH DECO'S EXCLUSION TAXABLE VALUE NUMBER OF TlWSFER. ATTACHA COPY OF TIE DEED FOR REAl.. ESTATE. VALUE OF ASSET INTEREST (IF /lPPUC\BlE.) 1, NATIONWIDE VARIABLE ANNUITY 183,102 100 83,102.00 SIMPLIFIED EMPLOYEE PENSION (SEP) CONTRACT # 01-0727367 2. WALNUT STREET SECURITIES - SEP 53,868 100 53,868.00 ACCOUNT #5WL-816753 3. WALNUT STREET SECURITIES 12,351 100 12,351.00 MONEY PURCHASE PLAN ACCOUNT #5WL-816787 4. SUNLIFE FINANCIAL/REGATTA GOLD 38,505 50 19,252.50 JOINT ANNUITY CONTRACT # 77-7700-348161 TOTAL {Also enter on line 7, Recapitulation) $ 268 573.50 (If more space is needed, insert additional sheets of the same size) STFPM2{)2~F.~1 REV-1511 EX + (1-97) (1) COMMO~lTH OF PENNSYtVANL'. INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS ESTATE OF ROBERT BONANDUCCI FILE NUMBER Debts of decedent must be ",ported on Sohedule I. ITEM NUMBER DESCRIPTION AMOUNT A. FUNERAL EXPENSES: 1. B. ADMINISTRATIVE COSTS: 1. Personal Representative's Commissions Name" Persoo~ Representalive(.j Social SeaJrity Number(.) I EIN Number" Persooal Representalive(s) Street Address City Slate Zip Year(s) Commissioo Paid: 2. Attorney Fees 3. Family Exemplioo: (~decedents address is oot the same as daimanls, attach explanation) CI~ma-rt ~Address City ~e Zip Relationship of Claimant to Decedent 4. Probate Fees 5. Accountant's Fees 6. Tax Return Preparer's Fees 7. SELLING EXPENSES 58 DREXEL PLACE (1/2 INT) 637 8 SELLING EXPENSES 1749 WEATHERBURN DR (1/2 INT) 639 9 SELLING EXPENSES 74 DREXEL (1/2 INT) 506 TOTAL (Also enter on line 9, Recapitulation) $ 1 782.00 (If more space is needed, insert additional sheets of the same size) S1"FPM2C21F.12 REV.1512 EX "" 11-97) II) COMMONWEALTH OF PENNSYlVANllI INHERrrANCE TAX RETURN RESIDENT DECEDENT SCHEDULE I DEBTS OF DECEDENT, MORTGAGE LIABILITIES, & LIENS ESTATE OF ROBERT BONANDUCCI FILE NUMBER Include unreimbursed medical expenses. ITEM NUMBER DESCRIPTION AMOUNT 19,941 1. MORTGAGE PAYOFF TO COUNTRYWIDE LOANS ON 58 DREXEL PLACE (1/2 INTEREST) 2 MORTGAGE PAYOFF TO COUNTRYWIDE LOANS ON 1749 WEATHERBURN DRIVE (1/2 INTEREST) 19,518 3 MORTGAGE BALANCE ON PRIMARY RESIDENCE AT 5540 WESTBURY DR, ENOLA, PA WITH NORTHWEST SAVINGS. (1/2 INTEREST) 32,750 TOTAL (Also enter on line 10, Recapitulation) $ (If more space is needed, insert additional sheets of the same size) 72,209.00 STFPM2.02.1F.13 REV-1513EX + (9-00) COMMOtMEAl.TH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE J BENEFICIARIES ESTATE OF ROBERT BONANDUCCI NUMBER L NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY TAXABLE DISTRIBUTIONS (Include outright spousal distributions, and transfers under Sec. 9116 (a) (1.2)) VIRGINIA BONANDUCCI 1. 2219 BRIGADE ROAD ENOLA, PA 17025 FILE NUMBER RELATIONSHIP TO DECEDENT Do Not list Trustee(s) SPOUSE AMOUNT OR SHARE OF ESTATE 100% 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 1. B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS 1. TOTAL OF PART I1- ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET $ (If more space IS needed, Insert additional sheels of lhe same size) STFPA4202,F.14 ";\',;U ']i); ;jH ,."ll; h. C';l> ">,-i " )i '" i ";,' ; I . i ~ ,>',"': Iii::,,' j:c, , ..( L'F/it,BH'-;;'j(;; i:iJ 1;~':PY P 7742498 .. ~R,v, 1191 COMMONWEALTH OF PENNSYLVANIA. DEPARTMENT OF HEALTH. VITAL RECORDS CERTIFICATE OF DEATH (Coroner) W\ME OF DEOEDENT (fir&!, Middlll. l.a~ ,. ROBERT AGE(t&tBi<\lI<lII.~) \JNOER1 ~E/o.R MOIItha DaYI '" swe FilE NUt,lSER SOCl"'LSECURlT'I'NUMBEfI BONANDUCCI UNDER I DAY DATE OF" ElIFITH HourI MinuleI (MOOIt1. Day. 'Mar) 2. Male '.126-36-9002 DATE OF"O€ATH (l,t()l1lh. Day.'M....l .. Se tember 22, 2001 .. COUNTY OF DEATH CITY,BC PLACE OF oeATH (Chlld<onIy""" .....'n...uclfOnSQ1lQl~""' ~l HOSPITAL mp.tllfllO ERIQ",p'~nl~ .. FAC\L\1'/NI'IME(lInotlnsl'luuon,givsWSSlafldfllJmber) BIRTHPu,cE(C(yllOd Slals"'fo<~\Cw(ll,,~\ 55 Yrs. NY ,,,,,0 =~vlD RACE-AmIoricaolndi.n.8lIlck.'oI/tI4.~ (Spec~1'l Cumberland East Pennsboro Holy Spirit Hospital " ... ()ECEDENT'SEDUCATION .. ,= E"m.ncsryISecQndl"y Co>IIIIOf (Q-tfl2 lHQI'&+) MARITAl STATUS-Mvrlood N_Ma"ied.W~. Di__($pec.y) ~arried S\ll'\"WIWG SPOUSE (IrWlle.glvema~oeme) DE ENT'SUSlJ QCClIPI:fIOt-l (~~~~il:'f~~=~=f 11. President/Sales 1ltt.ire Designers I I DECEDENT'S MAILING ADDRESS (Slr"'. c;lylTown. S1als. ZIp Code) OECEOENT'S 5540 Westbury Drive ~~}I;'iNCE Enola, PA 17025 ~~:~~n. Ha.51ahle PA 17c./XlYes.deC8d.nlliwdlo :Virginia Hamnden Zizza ". F"ATI'lER'SNAME(FifSl,Middle.Lasl) 1.. Anthony Bonanducci 1~OR.W:N1'SN~E(I,YPlfPf,nl) . V~rg~n1a Bonanducc~ METHQOOFOISPOS ION fktrtaI KJ CNlmelk>n 0 """'- 17b.C<:Iun ,. -. livaine Cl1mhprl find \ll'ftMhtp1 17d.D =;:=:;I~:ot lr.I01HEA'S NAME (Fusl. Middle. M9iOen Suroame) ,.. Angeline Innello rNF"ORMANT'SMAILlNGADDRESS(StI'''''l.Ci\ylT<Nm,~,Lip~ PA 17025 5540 Westbury Dr~ve, ~nola, PlOOF- DISPOSITION. N......e 0.. Cern.tef)'. Cf_malOI)' LOCATION, CityfToWfl. Sl.te. Zlp Code ofOlhe.PlI.CtI /' ,.., .,"'. OATEOFOlSPOSlTION (MOOlh.D.ey.Yall') o September 26, 2001 ... I..ICENSENUMt'lER ",.PD 0 12342-L o y~noWl.,;gs.<.M'lhoccu'f1'd.tlheti......,<iI.tf&!\lj\llll<lllste.\&Il. IIIdTille) Indiantown Gap Nat. Cern Annville, FA 17003 l'c. 21d. N,t..MEANDADOFlESSOFfACILITY 1 ll.;tone&MurrayPH 408 3rd St New Cumberlart UCENSENUMBER DATE SIGNED \Mol'Il\I.Day,'(ea,) ,51. h.....24-26mual(lecompletadby lllt~w!Ill\l<<l_dtlll",. DATE PRONQUNCEO tlEAG\MooIn. Day. 'fear) 24. 5:34 P. 1.\. 2&. September 22, 2001 27. PART I: EmertM ciIH..... injur!.l or complk:allona which ce\llled the dHlh. 00 oat eole. th. mode Q! dyi"ll. IU"" AI CII.o1ac or fllpifatory a....Ul. slIOOI< '" linn I""",,, l~llnlylloe_onl~llij"" 2>>. 1.3c WAS CASE REFE RED 10 MEOlCAI. EXAMINERlCCRONEA1 "'~ ,,0 . Probable M ocardial Infarction DUE TO {OR AS A CONSEQUENCE OF): Occlusive Coronar Arter D sea e OUETO(OAASACONSEQlJl;;.NCE 0Fl: " :Ap;l<<>>clmale ,iote.......ll>9twlleo :llnl&llndo..lh i PAl'lTlI: OlIoefIiQOi!jc;aotUlndjClonecont~lio~todlla1h.blll noto'llaulliOQlnlheW'lliolflylAgCGlJB<l~l\"'PAA1'\. 1II1IIIEDIATI! CAUSI! (Fit1a1 Clmlle&eo.condiIion r8Sllllil'lQlndelllh)_ IDDM ~llyhtQllflditloo8 iClf'IY.l&Idin"tolrnmediat. _. enlw\)Nt)EJtLYJNQ CAUII!.(Di8ealJeOf iojUfY ltIa\'rIIiBO&<jevenl1l .G!IIlllingifldEIBlI1)LAS1' OUE 10 (OR AS A CONSEoueNCE OF): WAS AN AUTOPsY PERFORMED? , W RIO AUTOPSY FINDINGS A\!AILAEllEF'RIOfllO CQMPLETlONOFCAlISE QF'DE.olrH? w..NHEflOF OEAlH N.lu.-.I (lQ o o DATEDFINJURY (Moott1,Dav,Yaari TIME 01' INJIIRY INJURY AT WORK? DESCRiBE ~IOW INJURY OCCURRED ",,0 '00 Acoldenl Homi<'kIe Pencfingto\lOsllgatlon Couldnot\l&del&rmined o 0, 30b. O PlACEOFINJURY. Al hOme. tSfm. Sl..IO\, fIClO!)'. ot/>cs bulldi~...c.(Speclly) ,... 'fIlS 0 NoD ",0 ,o~ M. LQCArION(SlreeI,CijylTown.Sta",) 2111. 2Ib. CiRTlf'M (Check only ornl) 'CERTlF"I'lNGPHVSIQAN/phvsoc:oan cert~y;ngCllll$lloldee.\!I_~ pl\yoiGihnhas p<onounc;ld deal!> anocomplelaoitem 23) lob bHlol myknowl(odsl', dPCh OOl:uffftl 11...101'" c.....(.).nd m.O"'f" .lIted.. Suicide ". Coroner ". ~,I"'<I/( I DKrE SlCiNI;OlMOfI!h.Oay, Yaa.) 3ie. 3111. Se. 24, 2001 NAME AND AOCAES$ OF" PERSON WHO COI.\PUTED CAIJSe OF DEATH (Irem271TypallfPfinlMichael L. Norris, Coroner 6375 Basehore Road, Suite #1 32. Mechanicsburg~ Pa. 17050 OATEfILEO{Mo<~h.Oay. 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LAST WILL AND TESTAMENT OF ROBERT BONANDUCCI u 19f) L.J .--, ! - , I U 6i-.l -' , 'QL ^ (\ P,"v~ i! \) L.N v!'~.j I " LAST WILL AND TESTAMENT OF ROBERT BONANDUCCI I, ROBERT 80NANDUCCI, of 6 Aspen Place, Long Val ley~ Morr.is County', !".jel;,l ,Jer'se/, re.3.1izing the lJncer-t.$.int::". of th j'5 1 i fe a.nd. l,'.Ji th fu 11 con+ i de.nc~ ancj tr'u"st 'I n m~"" Lor'd and :3a.\}iDlJf', ,JE'SU'S Chr-i,=.t, in Hi,;:- de.:r.th for m:y' ;.in"E. on the cr'o'ss, and in hi,s s.hed blood .~s an -=-tonement f':Jf' m:=-'- ";:..:'lJi, and k:no,.AJing th.~.t tl?' f3.ith in Hi':- $.3'.cri-fice on thE< I: r 0':,':::. for me I have eternal i fe, do her-ebj" publ i ":.h .3.nd (jecl.3.r'e th i ":E. to ti/' m::>'" 1 a':.t t.Ji 11 ancj Testament, heret'f f'el}ol< j nl~ all Wills and Codicjls heretofore made by me. Fl RST: I direct my Executrix to pay the expenses of 1T!)" 1.~.':.t ill ness and flJnera 1. SECOND: I 9 i I.} e .~n d be: q IJ e a. t rl m;.... f .~rn i 1 /" 8 i b 1 e t 1:1 rn/ el de:s~ ~:n, Should he not be old enough to handle this Page 1 .. Item in the .juljgment of my IMI-fe, I")ir'l~ilii.~, I give it tl:) her in safekeeping for' him until she deems it appropria.te for him to receive it. THIRD: If my wife, VIRGINIA MARIE 80NANDUCCI, survives me for a period of sixty (60) days~ I glv~ and devise to her the rest and remainder of my estate, both re.~l ancj per':;on.?l of el.}er'::"" kind of 1.J.Jhich I dt>? p':ts'~e=.sed or in t....Jh i c:h ! may h.a,.l.}e a.ny (ntepest. I B.U t h or i z e my E)~ecut(Jr' to p3./ out elf the ] ncome l:Jr. pr'i nc i pal of m/ e'state rea:.onable ,~molJnt=, fl:lf' the ":.uppor-t and m.~.inten3.nce of m::." l,.'~li fe, I)i r9i n i .;,~ an1:j .3."S li.Jell the re3.':.':Jnabl e e::-::pen"5e":. 01= her- funer"il.l .;,nd 9r.a.t...e.:;tone, ':;:.holJld '::;.he di<? 1..\,lithin -=..~id period of sixty (60) days. FOURTH: In the event of her survival, I appoint my tAJife, l')IRGINIA t-1AF:IE BGNANDUCCI ~ the E~.(ecutr"!>:: !:Jf rn~...' Estate, and direct'that no bond or other undertaking be required of her for the faithful performance of the duties of her ':Jffice. FIFTH: In'the el.}ent of the lje.~th of m/ l)Ji fe ~ \..1i r,~i n i -3.~ I n my 1 i fe'!: ime, or I n the el.}~nt of her de-3.1: rl Page 2 WI thin the period 01 sixty (60) days after my d~ath, I gjve~ devise and bequeath the rest and remainder of my e'state, both rea,l and persor,a,l. to MICHELE 80NANDUCCI. no',' of 6 Aspen Place~ Long Valley, Morris County, New Jersey~ IN TRUST, upon the fol lowing terms and conditions: .~.) Until thE' /oungest elf my I:hildr'en, nOl}.~ Mi chael, 'shall a.tt20i n the age of tl,o.J~nty-t!lo.\O (22) >,e.~r.s~ the Trustee 's,hall oay to him .~nd to any othero cholld or children born to or adopted by myself and my wife, 1'0) i r'9i n i ,3., or for' the i r. benef i t ~ -fr,~m the l nCQme or. pro i nc i po~.l of sa i d tr'IJ.:;t ,such .;.urn Qr ':.umo:. .3.5 the Ti'u'5tee .;.nd th~ belolj..I-n3.med 9u.~r"ji .:..n':. ':.h-=,.ll deem nec;o':.':-..;.r)"' an,: p~oper to provide for their sui table support, education (lnclur:lin9 hj(~,her educ.~tiDn), .~nd iTl.;.intE'n.~nc?, a.ddiri';; .~n/' unu':;ed income t,:\ thE' pr' i nc j p-?1 tel the enlj of ea,l:rJ ye.::<.r; (b) When the /ounge3t child born to or adopted by myself and my w(fe~ Vipginja~ reaches the age I:,f ho\Jt?ntyo-tll-.lO (22) /e-,~.r'.=-, the Tr-IJ'::otee i~, (jir-ected to di-:.tr-iblJte th.:- entir'e rema.inin9 prinl:ip.3.1 ,3.n,j income \-\-+ the trust to him or them in equal shar-es~ Page 3 .. . . ~c) In the event of the death of any of my childr--e-n prior- to the ter'minatil~n of thi';:. tr-u";;t4 the .:;u r'~} i I) or or. '5l.J r l,) j.~) or s. amon 9 m/ chi 1 dr e fr sh -=...1 1 be- en tit 1 e d to the u-se and pr i nc i pal of the ent I re tr.u-st under the condi tions set forth in Subparagraphs (a) and (b) above, UNLESS, said deceased chi ld of mine sMall die leaving children, in lAlhich Eol.)ent, folll~l"jing the termination of ';'.~.id trust, the share of '5uch deceased child shall cont\nue to be held in trust for the support~ education (jncluding higher education) ,and mainteflance of their =.ur'viving child or. childrE'n until the /c1unl;lest of th1?rT1 reaches the age of twenty-two (22) years, when the Trustee '=.h.~ll di";.tric!ute tl-l':> pr'incipal a.nd .:t,ny .3.I:cumul-=-.ted incl:)me~ in equal -:.hare-=:., to them or- their heir-:;; (,j) In the el.,.lent ,:)f the c:le,=-.th of ::'.11 ,:J": the children born to or adopted of myself and my wife, l')ir9ini.=-., pril:,r' to the termin.:..tion of thi.:, tr-lj-=:.t~ the Tru-:;tee srlall distrib4te the princ:ip.a.l -::;.nd any accumulated income to the 1 ega.tee-:;:. n-~.med j n the 2,eventh 1 tern of th 1 s ins.tr-ljment~ Ut".lLESS~ -:'.n:Y crf my children sh-~11 le.Ev-)e a chilel or children surviving them In which event the share or sh-3.re-;; of e-~ch "=:.ucrl dece.3,-:.ed eh i 1 d -:;h-~.ll con t 1 nue to be Page 4 held in trust for the support, education (including higher education) 1 and maintenance ot their surviving chi ld or ch i 1 dren un t i 1 the ::>"olJnge'st of them reache':. the age of twenty-two (22) years, when the Trustee shall distribute the rern2l.ining principal a.nd an>' .3'.ccumlJ1.~.i:.ed income, In equ3.i -=.h.~r'es, to them or. their' hE'ir':;:,; (e) The interest af the benefic\arie':. he~eunder shall not be subject to anticipation or to !.}ol unta.r/' or \ fj'.)ol unt.~.r'::l a.l 'I ena.t! on. SIXTH, I n the i n\..'e.:.tmen t ~ .;'.clm in i ,:,tr.~ t i on .;,nd distribution of my estate and of the trust hereby created~ my' Tr'u':.tee a..nd E::-::ecu'tcr' :;.h.::<.i j f1a.1.}e in ,addi t i on tc; the u::.1J3.1 f i due j a.ry pOIA1er':. a.s pr'o'.} i ijed tiY the 13.1AI of the :3t.::.te in t..'.,lhich I re'=.ide~ .an1j../,:rr' Comrnonl,~Je.~.lth of Penn,:,>"'ll.}.~.nia~ t,'.Jher'e my pr'e':;:.ent i n"tef'E',;.t.::, in EPIC Ai r.e Cor'O':lr.,~,t i Dn .3.nd AIRE Designers Incorporated are incorporated: (a) The power to retaIn any and all investments and other propertj~s he1d by me at my death; (b) The oot/...ler tD eh.~.n,;:e i n'..,1 i?stmen t:. .~ni:1 proper.t i -,:o-':;:.,nlj to i n\.le'~t and r'e i n1.}e'5"t::'.11 or. -3, p.,=<.rt 0+ the Page 5 " corpus of my estate whether or not the same is authorized for the investment of t~ust funds by the laws of the State in lAihich I r.:side and/or Commonl,\Je-;..lth of Penns/lva,ni.:..~ where my present interests in EPIC Aire Corporation and AIRE De<;j grier's Incl:,rpor.;c.ted ar.e i ncorpor.:;..ted; c. C) The pOlA1er tel ':.e 11 B.ll or- -9. pa.r t of the property of whatsoever Kind may form a part of my estate at such times and on such terms as to it seems advisable, and to execute good and sufficient deeds and bi 1 1s of sale therefc1r; (d) The pOJ;.Jer tel ccmprorni-.::,e c1.~.im':; Qf .~.n;j against my estate; C,e) The power to distribute in Kind or cash, or partiy each; (f) The power to apply for and r~ceive any insurance proceeds payable to minor b~neficiari~s as .~ result of m:>" death a:. .arJ addition to the principal of the trust created for such benef~ciari~s under Item Fifth. SEVENTH, In the further e~ent of the death o~ my ';.Jife, I.)irgini.:i, in m::..' lifetime~ or' in the el..-it?nt of her Page 6 " " death wi thin the period of sixty (60) days after my death, and the death of ":..11 of my children during my 1 ife.tiIT11? Of' during thE administration of the above-created trust without leaving chi1dren, 1 give and devise my entire estate as follows: I,..;.) All bacIK'=:. (1 \ br'a.r')/) to I..\Jh j che~}er. 1 clc.~.l ChlJr-ch of \~\,I.hich 1 am a member at my death; (b) One-half of the r-esidue of my estate to which ever Church of ~Ihich I am a member at my death for the adl,.lanc;?men't of the 13o.;::.pel of the }-;:".i ngdorn of Chri':.t; (c) One-half of the residue o~ my estate t 1:1 El"1t1Af'~UEL 8 I 8LE CHURCH. \ II the c .~r e of F.:e') e r. end El=ln 81an\{\'2>', 1..\Jith the mutua:1 C1::n'3ent of all fe11ol..\) el"2cte!j elder.:::. of th-B,1: chlJr'ch~ 1,9hD ':;h,~ll o'.}er":.ee tt-Ie IJ':.;? of thi':;. mone>/ ';::.0 tha.t one-h.:.-l f p.;.':::.:.e.::. 1:0 the i rl..;t [1:U1: i n;;1 of :.-n::.' In.:;.titution and.......or to an e'::.ta.bli':;hed In.:;titution for t~aining pasto~s and or missionaries, for th~ advancement of the Gospel of the l<ingdom of Chr'i'=..t~ .~nd the 01:t\'o?r' one-h.;.] f '=.h,~.11 p~.'=>'s E'<:llj.;.\ \ ~/ -to th>:> i fI::.t i t1.J't i ng I:l-t an/' Page 7 " Instituticm and/or to .3.n e':.ta.blisheej In"stii:ution fDP the Bibl ic.al counsel ing of people. EIGHTH: In the event of the death of my wife, I..) i r I~ i n i a, i n my 1 if e time ~ l:=tr i nth e e t.} e n t of rl e r (j+? a-. t rl wi thin the period of sixty (60) days after my death, I appoint MICHELE 80NANDUCCI, of 6 Asp8n Pla~8, Long Val18Y, Morris County, New Jersey. as Executrix of my Estate. In the Ed..Jent th.;.t t'1ichele EiJn-3.ndlJcci i'::. IJn.~.ble or unl.....1il1ing for any reason to se~Ve in thIS capaci ty~ the!l .~.ppojnt ERNESTt.1Ej....jlCHELL1, nl~V,J el+ 11'7' South 1,~,th ~3tr'eet~ Allentol.....1n, Penn'E/'ll)a.ni.;:..~ .::t";::- Executor in her- '.=.te';'rj. Fljr- ther-, .~.ppoint ~'lic~te1e 81=,n.~.ndlJcci 3.",::. the 13u.;.r'di.::..n 01- the persons of my mjnor chi ldren. In the event th~t 11 i che 1 Eo E1ona.lpjucc ii,s IJnabl e or unV..1 i 11 j ng for a.n'.:". re,~scn to serve as Guardian, I appoint ERNEST and MARGARET "'1 EN I CHELL I ~ hlJ'~band -3.nd \,,'Jif~, in her ,=,t.~.s,d. IN 1"JITNESS WHEREOF, I, ROBERT BONANDUCCI, ha,vo: ,::;,e t m,.' h.;'.nd .3.nlj ':;.e,:tl tel thi'=., m/ L.~..:::.t 1...jil1 .:tnd Te"3t.?ment, thi.;:, )/7Pf- r-- . /~~o"0 da"~.." of <-_/:C_tDiS \,''----~ 1 9:37. ~---- ~ / ----- ! <SEAL) Robert 80nanducci Pag8 8 ',' Signed, sealed, pub1 ished and declared by ROBERT 80NANDUCCI, the .abo\Je-n.arned Test...tor, .aE. .and for his. La.st I....Jill and Test.ament, in our pr'e'=-B-nce .and tAle, at hi':- r~qlJe.:.t, in hi,;. pr'e-sence .and in thJ? pr'!?'E.ence of e.:ach other, ha~)e herE'UntCi 'Subscribed our n.3,ITI€':=. B.S \.\litn;o'sse's on tht? date inscribed imrn€,ji.?.t€ly abovE' rli':, ":.i9na.tur'e. L ~ ";;, " ../ 7 /-;J ~ il/ //?i!1J;n;;)Jza;ldUJ1/:'/PfII.lf'f}C ,-/, t/>1J!.;P #. ,/ 't:1'/~ 1:-; /' . ~. ( '/, /. / './ t.J i tni?":.:. i;j \ tnes.;;:. / /.. /! /)/} (0 cl'<'1fhJ1J ,f/Y/ . .; I / 1 /'. ....::;. /'?/~ If' } '7/0 _t-",-:/,:'-'/J..Y:""'" /1 1(--) 1,,/' V/'/ / ".," > ...-" .. / /'} .~/-! Addre"::-":. Addres'!. ^ 7 ~ / j '1 . 'J -f/.(L . .> J) 'I lJ) C' / 72~7 .!J y ;{~ ~/~ d j r.../ .~ Jr:.-_ ;<J-7V' ""'" (~ j' \ _____'1 --" / ~,:-,/'~!..o-; ,'/;/.,:;:1._.- </7"," / //.-- ---- h ...., ; './ (?//_''f~ 5 Page 9 ..", ~ AIRE Designers Inc. Balance Sheet A.ccrual Basis ASSETS Current Assets Checking/Savings 100' Cash-PNC Money Market 102' Cash-PNC Checking Total Checking/Savings Accounts Receivable 110 . Accounts Receivable Total Accounts Receivable Other Current Assets 112.0 . Inventory Asset 115 . Loan to Officer Total Other Current Assets Total Current Assets Fixed Assets 170. Equipment 175. Accum. Depree. - Equip. 180 . Leasehold Improvements 185. Accum. Depree. - LlH Improve. 190 . Autos 195. Accum. Depree. - Autos 200 . Office Equipment 205 . Accum. Depree. - Off. Equip. Total Fixed Assets Other Assets 210. Unamortized Lease Cost 211 . Amortized Lease Cost Total Other Assets TOTAL ASSETS Page 1 Sep 22, 01 57,015.88 168.84 57,184.72 61,531.98 -'--~ 61,531.98 (288.00) 24,350.00 24,062.00 142,778.70 142,620.96 (131,798.40) 34,403.54 (3,867.48) 19,343.94 (16,461.50) 65,367.16 (74,817.79) 34,790.43 4,036.61 (3,497.79) 538.82 178,107.95 .' : AIRE Designers Inc. Balance Sheet Accrual Basis LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 238 . Accounts Payable - Filters Total Accounts Payable Other Current Liabilities 238.1 . Accounts Payable Year End 239 . Payable-Amer. Express 240.1 . Liab. - FICA/FIT 240.6 . Liab. - PAIT 245 . Liab. - Corporate Taxes 248 . Liab. - SEP Plan Total Other Current Liabilities Total Current Liabilities Total Liabilities Equity 280 . Capital Stock 290 . Accum. Adjustment Account 295 . Shareholder Draws Net Income Total Equity TOTAL LIABILITIES & EQUITY Page 2 Sep 22, 01 -~~- 29,595.08 29,595.08 336.58 1,236.40 (3,570.76) (500.30) (50.00) 11,700.30 9,152.22 38,747.30 38,74730 520.00 77,327.94 (20,000.00) 81,512.71 139,360.65 178,107.95 ~ Department of the Treasury Internal Revenue Service U.S. Income Tax Return Form 1 1205 for an S Co oration 2001 OMS No 15450130 IRS "e only ~ Do not file this fonn unless the corporation has timely filed Form 2553 to elect to be an S corporation. ~ See separate instructions. For calendar ear 2001, or ~ax ear be innin , 2001, and end in Do not write or staple in this space, A Effective Date of Election as an S Corporation ,20 C Employer ldentifleatian Humber 422990 Use IRS label. Other- wise, print or type. AIRE DESIGNERS, INC. 2219 BRIGADE ROAD ENOLA, PA 17025 23 - 2451345 D Date Incorporated 2/03/1987 E Total Assets (seB instructions) $ 89,315. ~D ~ 25 O. ~ 26 Refunded Z7 1/12/1993 B Business Code No. (see instructions) F Check applicable boxes: (1) ~nitja~ return (2) Final return (3) G Enter number of shareholders in the corporation at end of the tax year Caution: Include anI trade or business income and ex enses on lines 7a throu h 27. See the instructions for more information, Name change (4) Address change (5) 1 a Gross receipts or sales. 403,599. b Less returns and al!Qwance~. 2 Cost of goods sold (Schedule A, line 8). 3 Gross profit. Subtract line 2 from line 1 c. 4 Net gain (loss) from Form 4797, Part II, line 18 (attach Form 4797). 5 Other income (less) (attach schedule) . 6 Total income loss), Combine lines 3 throu h 5. . ' o 7 Compensation of officers. E 8 Salaries and wages (less employment credits). , o 9 Repairs and maintenance. . g 10 Bad debts. T " Rents. I 12 Taxes and licenses. ~ 13 Interest. S 14a Depreciation (if required, attach Form 4562). . b Depreciation claimed on Schedule A and elsewhere on return. c Subtract line 14b from line 14a I 15 Depletion (00 not deduct oil and gas depletion.). ' N S 16 Advertising, T R 17 Pension, profit-sharing, etc, plans. u c 18 Employee benefit programs. T I 19 Other deductions (attach schedule). SEE. STATEMENT. .3.. o N 20 Total deductions. Add the amounts shown in the far right column for lines 7 through 19 . . 5 21 Ordinar income (loss from trade or business activities. Subtract line 20 from line 6 . T 22 Tax: aExcess net passive income tax (attach schedule) . 22a ~ b Tax.trom Schedule 0 (Form 11205). 22b c Add lines 22a and 22b (see instructions for additional taxes) . . ~ 23 Payments: a 2001 estimated tax payments and amount applied from 2000 return . o b Tax deposited with Form 7004. c Credit for federal tax paid on fuels (attach Form 4136) , : d Add lines 23a through 23c. . Y 24 Estimated tax penalty. Check jf Form 2220 is attached, . M E 25 Tax dUe. If the total of lines 22c & 24 is larger than iine 23d, enter amount owed. N See instrs for depository method of payment. . . . . . . . . . . . , . . . , . . . . . . . . . . . , . . , . T 26 Overpayment. If line 23d is larger than the total of lines 22c and 24, enter amount overpaid. S 27 Enter amount of line 26 au want: Credited to 2002 estimated tax ., .. I N C o M E c Bal ~ 1c 2 3 4 S ~ 6 7 8 9 10 11 12 13 . . SEE. . STAIEME NT. J. . .. SEE. STATEMENT. .2.. 5 E E 14a 14b 19,631. 14c 15 16 17 18 19 ~ 20 21 23a 23b 23c Amended return ~ 2 403,599. 137,297. 266,302. 43 393. 309 695. 117,997. 6.711. 3 230. 9,375. 271. 19,631. 2,610. 29,699. 114 178. 303,702. 5,993. ~ Signature of Officer(; Data ... Title UI'I<ier penalties of perjury, I declare that I ha~ examined this retlJl"l'I, 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. Sign Here Date Paid Preparer's Use Only Preparer's Signature P00187624 EIN 23-2324837 ~ Ficm', Name SMOKER, SMITH & ASSOCIATES, (or yours If Irrrrr.. ,,".employed), ~ 2000 TECHNOLOGY PKWY Address, and ZPCad, MECHANICSBURG, PA 17050 BAA For Paperwork Reduction Act Notice, see separate instructions. PC Phone No (717) 441-9069 SPSAD105L 12/19/01 Form 11205 (2001) AIRE DESIGNERS, INC. 23-2451345 Cost of Goods Sold (see instructions Inventory at beginning of year. Purchases Cost of labor. Additional Section 263A costs (attach schedule). . Other costs (attach schedule). . 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. 9a Check all methods used for valuing closing inventory: (i) ~ Cost as described in Regulations Section 1.471-3 (ii) X Lower of cost or market as described in Regulations Section 1.471-4 (iii) Other (specify method used and attach explanation) b Check it there was a writedown of 'subnormal' goods as describ;d in-R;g~\;:tk;;' S;cto;; 1:471:.2(c). ~ ~ ~ ~ ~ ~~.~. ~.~.~.-:-.-:-.~.~ -....TI. c Check jf the LIFO inventory method was adopted this tax year for any goodS (if checked, attach Form 970). . . . . . , . . . . . . , . . . . . . . . .. ~ 0 d l~~~~t~~~~~~~:~2' U~d~~oL~Fba~. ~~~~. ~~r, ~~i~. t,a,x. :~.a.r: .e,~t~~ .~~~~~~~a~~ .(~: .~~,~~~ts~. ~~ ~~~~j~~. . , . . . . . ~ e Do the rules of Section 263A (for property produced or acquired for resale) apply to the corporation? , ... " .. 0 Yes [KJ No Pa e 2 ... SEE. STATEMENT 4. . 1 Z 3 4 5 6 7 8 132,322. 4,975. 137,297. 137,297. Was there any change in determining quantities, cost, or valuations between opening and closing Inventor? If 'Yes,' attach explanation. .. .. ,... ... .' .,.. .. .. , .. ... .. , .. . il'Jll,$)? Other Information 1 Check method of accounting: (a) X Cash Accrual (e) Other (specify) ~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2 Refer to the list in the instructions and state the corporation's principal: (0) BusinessactlVl~ .. _S~~E3_~C.9!:!2.U_LIINJi_ _ ____. (b) Product or servi". .. _Al~ !l~lJB~_ __ _ __ _ _ __ 3 Did the corporation at the end of the tax year 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, address, and employer identification number and (b) percentage owned. . . . . . . . . . . . , , . , , . . . . . . . , . . .' .................,. 4 Was the corporation a member of a controlled group subject to the provisions of Section 15617. 5 Check this box if the corporation has filed or is required to file Form 8264, Application for Registration of a Tax Shelter. 6 Check this box if the corporation issued publicly offered debt instruments with original issue discount. If so, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. 7 If the corporation: (a) filed its election to be an S corporation after 1986, (b) was a C corporation before it elected to be an S corporation or the corporation acquired an asset with a basis determined by reference to its basis (or the basis of any other property) in the hands of a C corporation, and (e) has net unrealized built.in gain (defined in Section 1374(d)(1)) in excess of the net recognized built.in gain from prior years, enter the net unrealized built-in gain reduced by net recognized built-in gain from prior years (see instructions). . , . . . .. ., . .. $ 8 Check this box if the corporation had accumulated earnings and proMs at the close of the tax year (5;e in-;t~cti~n;)~;' TI Note: If the corporation had assets or operated a business in a foreign country or U,S. possession, it may be required to attach ScheduleN arm 1120~ Forei nO erations of U.S. Cor orations to this return. See Schedule N fordetaifs. ::$_lIijIlU~r Shareholders' Shares of Income Credits Deductions etc a) Pro rata share items Ordinary income (loss) from trade or business activities (page 1, line 21), 2 Net income (loss) trom rental real estate activities (attach Form 8825) . 3a Gross income from other rental activities. . b Expenses from other rental activities (attach schedule), . c Net income (loss) from other rental activities. Subtract line 3b from line 3a. 4 Portfolio income (loss): a Interest income. b Ordinary dividends. c Royalty income. d Net short.term capital gain (loss) (attach Schedule D (Form] ]20S)). e (1) Net long-term capital gain (loss) (attach Schedule D (Form 1720S)): (2) 28% rate gain (loss). ~ _ _ _ _ _ _ _ _ _ _ _ (3) Qualified 5-yeargain,. ~ _ _ _ _ _ _ _ _ _ __ f Other portfolio income (loss) (attach schedule) . 5 Net Section 1231 gain (loss) (other than due to casualty or theft) (attach Form 4797). 6 Other income (loss attach schedule I N C o M E 3. 3b (b) Total amount 5,993. 1, 157. (L o S S) 41 5 6 SPSA0112L 01/28/02 Form 11Z0S (2001) Deduc~ tions Invest- ment Interest Credits AdJust- ments and Tax Prefer- ence tterns Foreign Taxes Other BAA AIRE DESIGNERS, INC. 23-2451345 Shareholders' Shares of Income Credits Deductions (a) Pro rata share items 7 Charitable contributions (attach schedule) . . 8 Section 179 expense deduction (attach Form 4562). 9 Deductions related to portfolio income (loss) (itemize). . 10 Other deductions attach schedule 11 a Interest expense on investment debts. b (1) Investment income included on Jines 4a, 4b, 4c, and 4f above. . . Investment ex. nses included on line 9 above. . 12a Credit for alcohol used as a fuel (attach Form 6478) . b Low-income housing credit: (1) From partnerships to which Section 42Q)(5) appiies. (2) Other than on iine 12b(1). c Qualified rehabilitation expenditures related to rental real estate activities (attach Form 3468) d Credits (other than credits shown on lines l2b and 12c) related to rental real estate activities. . e Credits related to other rental activities . 13 Other credits. . 14a Depreciation adjustment on property placed in service after 1986.. b Adjusted gain or loss. c Depletion (other than oil and gas) d (1) Gross income from oil, gas, or geothermal properties. (2) Deductions allocable to oil, gas, or geothermal properties. . e Other adjustments and tax preference items (attach schedule). . 15a Name of foreign country or U.S. possession.... _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ __ b Gross income from all sources. . . c Gross income sourced at shareholder level. d Foreign gross income sourced at corporate level: (1) Passive. (2) Listed categories (attach schedule). (3) General limitation. . e Deductions allocated and apportioned at shareholder level: (1) Interest expense. . (2) Other.. f Deductions allocated and apportioned at corporate level to foreign source income: (1) Passive. (2) Listed categories (attach schedule). (3) General limitation. . gTotal foreign taxes (check one): ... OPaid DAccrued.. h Reduction in taxes available for credit attach schedule). . 16 Section 59(e)(2) expenditures: a Type.... _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ b Amount ~ 17 Tax-exempt interest income. 18 Other tax-exempt income. . 19 Nondeductible expenses 20 Total property distributions (including cash) other than dividends reported on line 22 below. . 21 . Other items and amounts required to be reported separately to shareholders (attach schedule). 22 Total dividend distributions paid from accumulated earnings and profits. . 23 Income (loss). (Required only if Schedule M-l must be completed,) Combine lines 1 through 6 in column (b , From the result, subtract the sum of lines 7 throu h 1 la, 1 ,and 16b. . . . . . SPSAOl34L 12/20101 Pa e 3 (b) Total amount , 8 9 10 11 a 11b (1) 11b (2) 12. 1 346. 1,157. 12b (1) 12b (2) 12c 12d 12e 13 14a 14b 14c 14d (1) 14d (2) 14e 464. 1Sh 1Gb l' 18 19 20 2,581. 5,804. Form 11205 (2001) pa e 4 23-2451345 1 Cash..... 2a Trade notes and accounts receivable, ' b Less allowance for bad debts, . . . 3 Inventories, 4 U,S. government obligations. 5 Tax-exempt securltles, ' 6 Other current assets (attach schedule). SE.E 7 Loans to shareholders. . . B Mortgage and real estate loans. . . ' . . 9 Other Investments (attach schedule). , . . . 10a Buildings and other depreciable assets. . . . ' b Less accumulated depreciation, . . 11 a Depletable assets, . . . ' b Less accumulated depletion. . 12 Land (net 01 any amort'lzation). . . , . 13a Intangible assets (amortlzable only). b Less accumulated amortization, 14 Other assets (attach schedule) . 15 Total assets, . ' Uabilities and Shareholders' Equity 16 Accounts payable. . . . . , 7 Mortgages, notes, bonds payable in less than 1 yeac . . . . 18 Other current liabilities (attach sch).. . SEE. ST. '9 Loans from shareholders. . 20 Mortgages, notes, bonds payable in 1 year or more 21 Other liabilities (attachschedufe). .. . 22 Capital stock. ' 23 Additional paid-in capital. . . 24 Retained earnings. . , . 25 Adjustments to shareholders' equIty (8tt 5ch) . . . 26 Less cost of treasury steck, . 27 T olal liabililies and shareholders' e uit 78 , 034 . 89 , 315 . S_uliiIU'i'!l1ii Reconciliation of Income (Loss) per Books with Income (Loss) per Return (You are not required to complele this schedule il Ihe lolal assels on line 15, column (d), of Schedule L are less Ihan $25,000.) 1 Net income (loss) per boo!<$, . . 3,223. 5 Income recorded on books this year not included 2 income included on Schedule K, lines 1 through 6, not on Sche<!ul, K, lines I Ihrough 6 (ilemize): recorded on books thl~ year (itemize): a Tax-exempt interest. $- - - - - - - - - -- 50. 44,350. 29,499. 520. 59,296. ~------------------- ------------~-------- 6 Deductions included on Schedule K, lines 1 through l1a, 15g, and 16b, not charged against book me-orne this year (itemize): a Depreciation". $______ ----- -------------------- 3 Expenses recorded on books thIS year not included on Schedule K, hnes 1 through 11a, ) 5g, and 16b (itemize): a Depreciation. . ' . ' ' $ II T rav,1 and entertainment. (:::::::::::::::: ~ ;)]11 = __ ____ _____ ______ _ ___ 2,581. 7 Addlin.sSand6:-: --- -- ----- 4 Add lines 1 Ihrou h 3. . . . 5, 804. 8 Incom' loss) (Schedul, K, In 23 . Ln 41,ss In ) . . . '$'''''' UliiM'~l! Analysis 01 Accumulated Adjustments Account, Other Adjustments Account, and Shareholders' Undistributed Taxable Income Previously Taxed (see inslruclions) (a) Accumulaled (b) Other Ie) Shareholders: undis. adJ'ustments account adJ'ustments account 1nbute<l.taxable mcome revlDusl taxed 5,804. , Balance at beginning of tax year. . 2 Ordinary income from page 1, fine 21 . . 3 Otheraddilions... SEE.STAT.EMENT.7... 4 Loss from page 1, line 21. , . . > 5 Other reductions... .5EE. STATEMENT. 8.... 6 Combine lines 1 thfOugh 5 . . 7 Distributions other than dividend dIstributions. . 8 8a~ance at end of tax. ear. Subtract line 7 from line 6 . O. 5 993. 1,157. ( 3 927.) 3,223. 3,223. Form 11205 (2001) SPSAOI34L 12/20101 Schedule K-' (Form 1120S) Shareholder's Share of Income, Credits, Deductions, etc ... See separate instructions. For calendar year 2001 or tax year ,2001. and end in . 20 Cor oration's identl 'n number" 23 - 2451345 Corporation's N~me, Address, and ZIP Code OMB No. 1545.0130 2001 Oepartmen~ of the Treao::.ufy Internal Revenue Service be innin 126-36-9002 Shareholder's identi in number'" SharerlOtder's Name, Address, and ZIP Code ROBERT BONANDUCCI 5540 WESTBURY DRIVE ENOLA, PA 17025 AIRE DESIGNERS, INC. 2219 BRIGADE ROAD ENOLA. PA 17025 A Shareholder's percentage of stock ownership for tax year (see instructions for Schedule K-l). ... 72.328767 % B Internal Revenue Service Centerwnere corporation flied its return. . . ... _Cl~CJ~~A_Tl 1- _O.!:l_ _ _ _ _ _ _ __ _ _ _ -=- -=- =--=- =--=--=- =..__ C Tax shelter registration number (see instructions for Schedule K-l). . ... _ _ _ _ _ _ _ _ _ _ _ _ __ o Check applicable boxes: (1) Final K-l (2) Amended K.l (a) Pro rata share items (3) Qualified 5-year gain. . . f Other portfolio income (loss) (attach schedule) 5 Net Section 1231 gain (loss) (other than due to casualty or theft).. 6 Other Income (loss attach schedule) . . . 7 Charitable contributions (attach schedule) . 8 Section 179 expense deduction,. 9 Deductions related to portfolio income (loss) (attach schedule) . 10 Other deductions attach schedule) . , 1 a Interest expense on investment debts. b <1> Investment income included on lines 4a, 4b, 4c, and 4f above. . Investment ex enses included on line 9 above. 12a Credit for alcohol used as tueL . b Low-income housing credit: (1) From Section 420)(5) partnerships. . (2) Other than on line 12b(1). c Qua.lified rehabilitation expenditures related to rental real estate activities. d Credits (other than credits shown on lines 12b and 12c) related to rental real estate activities. e Credits related to other rental activities. . 13' Other credits. . . 8AA For Paperwork Reduction Act Notice-, see the instructions for Form 11205. Income (Loss) Deduc~ tions Invest.. ment Interest Credits 1 Ordinary income (loss) from trade or business activities. 2 Net mcome (Joss) from rental real estateactivilies. 3 Net income (loss) from other rental activities. 4 Portfolio income (loss): a Interest. . b Ordinary dividends. . . c RoyaltIes. d Net shart~term capital gain (loss} . e (1) Net long-term capital gain (loss} . , (2) 28% rate gain (loss). (b) Amount (c) Form 1040 filers enter the amount in column (b) on: , 4,335. See the Shareholder's 2 Instructions for Schedule K-' 3 (Form 1120S). 4. 837. Schedule B, Part I, Ime 1 4b Schedule B, Part II, Ime 5 4c Schedule E, Part I, line4 4d Schedule D, line 5, col (ll 40(1) Schedule D, line 12, col (I) 40(2) Schedule D, line 12, col (g) Line 4 of worksheet for 40(3) Schedule 0, line 29 41 (Enter on applicable line of return.) See Shareholder's Instruc- tions for Schedule K.] 5 (Form 1120S). 6 (Enter on ap Iicable line of return. 7 Schedule A, line 15 or 16 B 974. See Shareholder's lnstruc- tions for Schedule K.l (Form 1120S). Form 4952, line I 837. See Shareholder's Instruc. tions for Schedule K.j (Form 1120S). Form 6478, hne 10 arm 8586, line 5 12c 12d See the Shareholder's Instructions for 12. Schedule K.I 13 (Form I 120S). Schedule K-' (Form 1120S) 2001 SHAREHOLDER 1 SPSA0412L 01/14/02 . Sct\~ctuleK-1(Form1l20S (2001 AIRE DESIGNERS, INC. Adjust- ments and Tax Prefer. ence Items Foreign Taxes Other Supple- mental lnfor. rnation f Deductions allocated and apportioned at corporate level to foreign source income; (1) Passive. (2) Listed categories (attach schedule). . (3) General limitation. . 9 Total foreign taxes (check one): ~ 0 Paid 0 Accrued, . h Reduction in taxes available for credit attach schedule). 16 Section 59(e)(2) expenditures: a Type~. ___ __ ___ _ ___ _ _ __ b Amount. 17 Tax-exempt interest income. 18 Other tax-exempt income. . 19 Nondeductible expenses. 20 Property distributions (including cash) other than dividend distributions reported to you on Form 1099.DIV. . . . . . . . . . 21 Amount of loan repayments for 'Loans from Shareholders'. . . 22 Recapture of low-income housing credit: a From Section 42(j)(5) partnerships. b Other than on line 22a. 23 Supplemental information required to be reported sepOirately to each shareholder (attach additional schedules if more space is needed): . (a) Pro rata share items 14a Depreciation adjustment on property placed in service after 1986. b Adjusted gain or loss. c Depletion (other than oil and gas). d (1) Gross income from oil, gas, or geothermal properties. (2) Deductions allocable to oi\, gas, or geothermal properties. e Other adjustments and tax preference items (attach sch) . 15a Name of foreign country or U.S. possession ~ _ _ _ _ _ _ _ _ _ _ _ _ _ __ b Gross income from all sources. . . c Gross income sourced at shareholder level. d Foreign gross income sourced at corporate level: (1) Passive. (2) Listed "te!l\l,ies (attach schedul'). . (3) General limitation . e Deductions allocated and apportioned at shareholder level; (1) Interest expense. (2) Other.. SPSA0412L 01114/02 SHAREHOLDER 1 ROBERT BONANDUCCI 126-36-9002 23 - 2451345 Pa e2 (c) Form 1040 1iIars enter the amount in column (b) on: (b) Amount 14a 14b 14c 14d(1) 14d(2) 14e 336. See Shareholder's Instructions for Schedule K.l (Form 1120S) and Instructions for Form 6251 Form' 116, Part I Form 11 16, Part II See instructions for Form 1116 See Shareholder's Instruc- tions for Schedule K.l (Form 11205). Form 1040, line 8b 1,867. See the Shareholder's Instructions for Schedule K-l (Form 1120S). Form 8611, line 8 Schedule K-1 (Form 1120S) 2001 ~ ~ Oepartment of the Treasury Internal Revenue Service Shareholder's identifvina number ~ Shareholder's Name, Address, and ZIP Code Shareholder's Share of Income, Credits, Deductions, etc ~ See separate instructions. For calendar year 2001 or tax year , 2001, and endina 20 CarDamon's identitving number ~ 23 - 2451345 Corporation's Name, Address, and ZIP Code OMS No. 1545.0130 Schedule K-l (Farm 11205) 2001 beainnina 153-34-3680 VIRGINIA BONANDUCCI 5540 WESTBURY DRIVE ENOLA, PA 17025 AIRE DESIGNERS, INC. 2219 BRIGADE ROAD ENOLA, PA 17025 A Shareholder's percentage of stock ownership for tax year (see instructions for Schedule K-1). . .. _1-?. ,:-6J 1. ~3). % 8 Internal Revenue Service Center where corporation filed its return. .. _Cl~CJBfiA_Tl!.... _O.!j_ _ _ _ _ ~ _ _ _ _ _ _ _ ___ _ _ _ _ __ C Tax shelter registration number (see instructions for Schedule K.1).. ~ (1) n Final K.1 n Amended K-1 -------------- 0 Check applicable boxes: (2) (a) Pro rata share items (b) Amount (c) Form 1040 filers enter the amount in column (b) on: 1 Ordinary income (Joss) from trade or business activities. 1 1,658. See the Shareholder's 2 Net Income (loss) from rental real estate activities . 2 _~nstructions for Schedule K.1 3 Net income (loss) from other rental activities. 3 (Fonm 1120S). 4 Portfolio income (loss): a Interest. 4a 320. Schedule B, Part I, line 1 b Ordinary dividends. ....... 4b Schedule 8, Part II, line 5 c Royalties. . 4c Schedule E, Part I, line 4 Income d Net short.term capital gain (loss). . 4d Schedule 0, Ime 5, col (t) (Loss) e (1) Net long-term capital gain (loss). . . 40(1) Schedule 0, line 12, col (1) (2) 28% rate gain (loss) . 4e(2) Schedule 0, line 12, col (g) Line 4 of worksheet for (3) Qualified 5.year gain. 4e(3) Schedule 0, line 29 f Other portfolio income (loss) (attach schedule). . 41 (Enter on applicable line of return.) See Shareholder's Instruc- 5 Net Section 1231 gain (loss) (other than due to casualty tions for Schedule K.1 or theft). 5 (Form 1120S). 6 Other income (loss) (attach schedule) . 6 (Enter on applicable line of return.) 7 Charitable contributions (attach schedule) . 7 Schedul.A, Im.15er 16 8 Section 179 expense deduction. . 8 372. Oeduc.. 9 Deductions related to portfolio income (loss) f--?ee Shareholder's Instruc- tions (attach schedule) . 9 tions for Schedule K-l (Form 1120S). 10 other d&1UCtiOllS (attach schedule). 10 Invest- 11 a Interest expense on investment debts. 11 a Form 4952, line 1 ment b(l) Investment income included on lines 4a, 4b, 4c, and 4f above. l1b(1J 320. 1- fee Shareholder's Instruc- tions tor Schedule K-l Interest (2) Investment exoenses included on line 9 above. llb12\ (Form 111DS). 12a Credit for alcohol used as fuel. 12a Form 6478, line 10 b Low-income housing credit: }orm 8586, line 5 (1) From Section 42U)(5) partnerships. . 12b(1\ Credits (2) Other than on line 12b(1). 12b(2) c Qualified rehabilitation expenditures related to rental real estate activities. 12c d Credits (other than credits shown on lines 12b and 12c) related _See the Shareholder's to rental real estate activities. 12d Instructions for e Credits related to other rental activities.. 12e Schedule K-1 13 Other credits. . 13 (Form 1120S). BAA For PapelWork Reduction Act Hotice, see the instructions for Form 11205. Schedule K-1 (Form 11208) 2001 SHAREHOLDER 2 $PSA0412L 01fl4l02 , Sch~dule K-1 (Form 1120S (2001 AIRE DESIGNERS INC. Adjust- ments and Tax Prefer- ence Items Foreign Taxes Other Supple- mental Infor- mation 23-2451345 (a) Pro rata share items 14a Depreciation adjustment on property placed in service after 1986. ' b Adjusted gain or loss. c Depletion (other than oil and gas). d (1) Gross income from oil, gas, or geothermal properties. (2) Deductions allocable to oil, gas, or geothermal properties. e Other adjustments and tax preference items (attach sch 15a Name of foreign country or U.S, possession ~ _ _ _ _ _ _ _ _ _ _ _ _ _ __ b Gross income from all sources. . . c Gross income sourced at shareholder leve! . d Foreign gross income sourced at corporate level: (1) Passive. (2) Usterl categories (attach schedulfl), (3) General limitation. e Deductions allocated and apportioned at shareholder level: (1) Interest expense. (2) Other.. f Deductions allocated and apportioned at corporate level to foreign source Income; (1) Passive. (2) Listed categories (attach schedule). . (3) General limitation. . 9 Total foreign taxes (check one): ~ D Paid 0 Accrued. h Reduction in taxes available for credit (attach schedule. 16 Section 59(e)(2) expenditures: a Type~. b Amount. . 17 Tax-exempt interest income.. 18 Other tax-exempt income. 19 Nondeductible expenses, , . 20 Property distributions (including cash) other than dividend distributions reported to you on Form 1099-DIV...... .... 21 Amount of loan repayments for 'Loans from Shareholders'. . . 22. Recapture of low-income housing credit: a From Section 420)(5) partnerships. b Other than on line 22a. , 14a 14b 14c 14d(1) 14d(2) 14e (b) Amount 128. 714. Pa e2 (c) form 1040 'Bers enler Ihe amount in column (b) on: See Shareholder's Instructions for Schedule K. I (Form 1120S) and Instructions for Form 6251 Form 1l16, Part I Farm 1116, Part II See instructions for Form 1116 See Shareholder's Instruc- tions tor Schedule K.l (Form 1120S). Form 1040, line 8b See the Shareholder's Instructions for Schedule K.1 (Form 1120S). Form 8611, \ine 8 23 Supplemental information required to be reported separately to each snarehotder (attach additional schedules ff more space is needed): ' SPSA0412l 01/14/02 SHAREHOLDER 2 VIRGINIA BONANDUCCI 153-34-3680 Schedule K-1 (Form I 120S) 2001 ~ For~ 4562 (Rev March 2002) Department of the Treasury internal Revenue Service Name(s) Shown on Return AIRE DESIGNERS INC. Business or Activity to Which ThiS Form Relates Depreciation and Amortization (Including Information on Listed Properly) . See separate instructions. ~ Attach to vour tax. return. OMS No. 1545.0172 2001 67 Identifying Humber 23 - 2451345 FORM 1120S kl5lfMitl ~~~e~if~~}~a;:f,;~~~,f;~:jZ,Tc~::'%i~~e la~oJl;e1lre ~~~~~~~e~i~~rt '179 1 Maximum amount. See instructions for a higher limit for certain businesses. 2 lotal 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 tess, enter -D-, . 5 Dollar limitation for tax year. Subtract line 4 from line 1. If z.ero or less, enter .0-. If married. filing se aratel , see instructions. 1 2 3 4 $24,000. 1,346. $200,000. O. 5 6 a Description of property 7-YEAR GBC SHREDDER b) Cast (husi\'\€.ss use only) 1,346. C)E\eciedcost 1,346. 7 Listed property. Enter the amount from (ine 29. . 7 O. B Tetal 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 ot disallowed deduction trom line 13 of your 2000 Form 4562. 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instrs). 11 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11. 12 13 Carr over of disallowed deduction to 2002. Add lines 9 and 10, less line 12. ... 13 O. Note: Do not use Part II or Part 1/1 below for listed property. Instead, use Part v. i:PiiitlaCA@ S cial De reciation Allowance and Other De reciation 0 not include listed ro ert .) 14 ~8o,ci~e~eFr:":t~~~~~:j.I~~a.~~~ .f~r .~~r.t~i.~ ~.ro~e.r~~ .(~~~~~ .t~~~. I.i~~~~ .p.r~.p.~r~~? ~.c.q.~j~~~ .~ft~~ .~~~~~m.b.~r. 10: .' 14 15 Property subject to Section 168(f)(1) election (see instructions). . 15 16 Other de reciation (includin ACRS (see instructions. 16 iAllHWnr}I} MACRS De reciation Do not include listed ro ert. See instructions Section A 17 MACRS deductions for assets placed in service in tax years beglnning before 2001. . 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 general asset accounts, check here..... .....,.. ........,................. ... Section B - Assets Placed in Service Durin 2001 Tax Year Usin the General Depreciation S stem (b) Month and (c) Basis for depreciation (d) (e) , (f) year placed (businesslmvestmenlllse Recovery period Convention Method In service only - see instructions) (g) Depreciation deduction Nonresident"lal real. property. . 25 27.5 27.5 39 MM MM MM MM S/L S/L SI L S/L S/L Section C - Assets Placed in Service During 2001 Tax Year Usi" the Alternative De reciation S stem 12 40 rs rs MM SIL S/L SI L 20 a Class life b 12- ear. c4Q- ear.. :Pi!!iOnl;:}} Summa (See instructions) 2.1 Listed property. Enter amount from noe 2a 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 instruct'lons. . 23 For assets shown above and placed in service during the current year, enter the artian of the basts attributable to SediDli 263A costs. .. .... ......... BAA For Paperwork Reduction Act Notice, see instructions. FDlZ0812L 03/20/02 21 1,775. 22 23 Form 4562 (2001) (Rev 3-2002) Farm 4562 BlidiM" 2001 (Rev 3-2002 AIRE DESIGNERS INC. 23-2451345 Pa ". Listed Proper1y (Include automobiles, certain other vehicles, cellular telephones, certain compu1ers, 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 S, and Section C if applicable. Section A - De reciation and other Information Caution: See instructions for limits for assen er automobiles.) 24a Do you have evidence to support the business/investment use claimed? . X Yes No 24b If 'Yes,' is the evidence wrJllen? . X (a) (b) (c) (d) (e) (I) (g) (h) Type of, property (list Date pl;;lced Busln,essl Cost or Basis for d,epreciation Recovery Method/ Depreciation vehicles first) in service Inves ment other basis (busmesshnvestment perlod Convention deduction per~es~tage. use only) 25 Special depreciation allowance for listed property acquired after September 10, 2001 and used more than 50'% in a ualified business use (see instructions} . 25 e2 No (I) Elected Sec:tion 179 ,oo, 26 Prooertv used more than 50% in a Qualified business use (see instructions); 95 ACURA 2/06/95 100.0 19,344. 19,344. 5.0 200DB HY 1,775. 27 Pro ert used 50% or less in a qualified business use (see instructions): 28 Add amounts in column (h), lines 25 through 27. En1er here and on Hne 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 1,775. 29 (a) (b) (c) (d) (e) (I) 30 T atal business/investment miles driven Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicle 5 Vehicle 6 during the year (do not include commuting miles - see jnstructions~ . 31 Total commuting miles driven during the year. . 32 Total other personal (noncom muting) miles driven. . 33 Total miles driven dur'lng the year. Add lines 30 through 32. . Yes No Yes No Yes No Yes No Yes No Ves No 34 Was the vehicle available for personal 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 yau meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons (see instructions). Ves 37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by your employees? No 38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See instructions for \/ehicles 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 empioyees 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 your answer to 37, 38, 39, 40, or 41 is 'Yes, I do not complete Section 8 for the covered vehicles. i~iiidiMI)): Amortization (a) (b) (c) Amortizable amount (eI) Cod. Section (e) Amortization period Of percentage (I) Amortization for this year Description of costs Date amortization begins 42 Amortization of costs that be ins durin our 2001 tax ear 43 807. 44 807 . Form 4562 (2001) (Rev 3-2002) A3 Amortization of costs that began before your 2001 tax ye(.![ 44 Total. Add amounts in column . See instructions for where to re ort. FDIZOB12L 03/20/02 2001 FEDERAL STATEMENTS PAGE 1 CLIENT AIRE01 AIRE DESIGNERS, INC, 23-2451345 6110102 03;23PM STATEMENT 1 FORM 11205, LINE 5 OTHER INCOME CONSULTING INCOME.. COMMISSIONS EARNED. EXPENSE REIMBURSEMENT.. MISCELLANEOUS INCOME. SEMINAR INCOME.. . .... .... ....... $ 24,350. 11,188. 3,458. ...... 272. 4,125. TOTAL $ 43,393. STATEMENT 2 FORM 11205, LINE 12 TAXES AND LICENSES PAYROLL TAXES ............ $ TOTAL $ 9,375. 9,375. STATEMENT 3 FORM 1120S, LINE 19 OTHER DEDUCTIONS AMORTIZATION. $ 807. AUTO AND TRUCK EXPENSE... 2,419. AUTO LEASE 6, 371. BANK CHARGES. 317. BUSINESS PROMOTION.. 1,099. COMMISSIONS.. . 15,399. COMPUTER EXPENSE....... 5,739. CONTINUING EDUCATION.. ...... 2,173. DUES AND SUBSCRIPTIONS.. ..... 300. INSURANCE. . 9,394. LEGAL AND PROFESSIONAL... ..... ...... 10,397. MEALS AND ENTERTAINMENT E~PENSE. 2,581. MISCELLANEOUS .".... 6,049. OFFICE EXPENSE. 7,362. PAYROL L PROCESSING. . 420. PRINTING. . ..... ..... ....." 4,246. SUBCONTRACTORS. .. ..... . 30,759. TELEPHONE. 3,072. TRAVEL. 5,274. TOTAL $ 114,178. . STATEMENT 4 FORM 11205, SCHEDULE A, LINE 5 OTHER COSTS FREIGHT. ..... . $ 3,210. MATERIALS AND SUPPLIES. . ............ 1 ,765. TOTAL $ 4,975. 2001 FEDERAL STATEMENTS PAGE 2 CLIENT AIRE01 AIRE DESIGNERS, INC. 23-2451345 6110/02 03:23PM STATEMENT 5 FORM 11205, SCHEDULE L, LINE 6 OTHER CURRENT ASSETS BEGINNING ENDING PREPAID PA CAP STK TAX. ........ $ O. $ 50. TOTAL $ O. $ 50. STATEMENT 6 FORM 11205, SCHEDULE L, LINE 18 OTHER CURRENT LIABILITIES BEGINNING ENDING PENSION PAYABLE. $ 21,44l. $ 29,499. TOTAL $ 21,44l. $ 29,499. STATEMENT 7 FORM 11205, SCHEDULE M-2, LINE 3 OTHER ADDITIONS INTEREST INCOME.. $ 1,157. TOTAL $ 1,157. STATEMENT 8 FORM 11205, SCHEDULE M-2, LINE 5 OTHER REDUCTIONS DISALLOWED MEALS AND ENTERTAINMENT. . $ 2,581. SECTION 179 EXPENSE.. 1,346. TOTAL $ 3,927. , Form . 11205 u.s. t ..orne Tax Return for an S Corpol ..on .. Do not IlIe this lorm unless lhecorporatlon has timely IlIed Form 2553 to elect to be an S corpora'Uon. ... See separate instructions. 200 d OMS No, 1545-0130 2000 or ca snder vear , or tax vear lQlnmna 0 an endlnO ,20 A Effective date of election use C Employer identlficatton number as an S corporation IRS 23-2451345 label. l/l2/l993 Other- AIRE DESIGNERS, INC. 0 Datelncorporaied 8 Business code no. wise, 5540 WESTBURY DRIVE 2/03/1987 (see pages 29-31) print ENOLA, PA 17025 E Toial assets (see page' 1) or type, 78,0341 422990 $ Department of the Treasury Internal Revenue Service F 2000 b F Check applicable boxes: (1) 0 Initial return (2) 0 Final return (3) 0 Change in address (4) 0 Amended return G Enter number at Shareholders in the corporation at end of the tax year. . . ' . , . . , , . . . , , . . ' . . . ' , . . . ' , . . ' . . . . ' . . , , . , . . . . , . . . , ... Caution: Include on trade or business income and ex enses on Jines 18 throu h 21. See a e 11 of the instructions tor more information. 1 a Gross receipts or sales 319 , 86 6 b Less returns & allowances c Bai .. 2 Cost of goods sold (Schadule A, line 8). , . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . 3 Gross profit. Subtract line 2 from line 1c . ' ........ . . ...., . ...... .... .. . . ...... ... . ... ...... . . .. .., 4 Net gain (loss) from Form 4797. Part II, line 18 (allach Form 4797). . . . . . . . . . . . . . . . . . . . . . .. . . . . ... . ... .. . 5 Other income (ioss) (allach schedule). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .SEE . STATEMENT. .1 . . . 6 Total income loss. Combine lines 3 throu h 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... 7 Compensation of officers...... . . . . . . . . . . . . .. . . . . . . . .. . . .. ,.. ....... . .' . ... .... ... . , ... . ... . ." ~ 8 Salaries and wages (less employment credits) ................................. . . . . . . . . , . . . . . . . . . . . E 9 Repairs and maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . ~ 1() Bad debts. . . . . . . . .. '., . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . , 11 Rents..............,............................... .,...... .,...,..................,........ 2 o I 12 Taxes and lioenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E N 13 Interest. . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . , . . . ",... . . . . .. . . . . . . . . . . . , . . . . . . . . , . . . . . . , S 1I 14 a Depreciation (If required, allach Form 4562). . . . . . . . . . . . . . . . . . . . . . . . . .. 14a 21 , 2 9 9 C ~ b Depreciation claimed on Schedule A and elsewhere on return. . . . . . . . . . . .. 14b T 6 c Subtract line 14b from line 148 . . . . . . . . ' .. . ..... . . ...... , .. . .. , ...... ..' . ..' ,... ., . . , '... .. " ... o f\ 15 Depletion (Do not deduct 011 and gas deple\lon.) .. . . . . .. . . .. . .. .. .. . .. .. .. . .. . .. . . .. .. . . . . . .. . . .. . ~ L 16 Advertising.......,..,........,.....,.,........................,...,.....,...............,.. ~'7 Pension, profit-sharing, etc., plans . . . . . . . , . . . , . . . . . , , . . . . . . . . , . . . . . . . . , . ~ . . ' . . . . . . . . . . . . . . . . . . . . + 18 Employee benefit programs. . . . . . . . . . . . . . . . . . . . . . . . . . . , . ' . . . . . . . . ' . . . . . ... . . . .. ' , , , . . . . . .. . . .. . ~ 19 Other deductions (allach schedule).. . . . . .. .... " . .. . .... ... ... ... . .. .SEE . STATEMENT.. 2... . b 20 Total deductions. Add the amounts shown in the far right column for lines 7 through 19. . . . . . . . . . , . . . . . . . ... N 5 I N C o M E 21 Ordina income (loss from trade or business activlties. Subtract line 20 from line 6 ... . 22 Tax: a Excess net passive income tax (att schedule). . . . . . . , . . . . . . . . . . .' 228 b lax from Scheduie D (Form 1120S) . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .' 22b c Add Iines22a &22b (seepage 16 of the instrs for addl taxes) ......................................... 23 Payments: a 2000 estimated tax payments & ami applied from 1999 return.. 238 b Tax deposited with Form 7004 . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. 23b c Credil for Federal tax paid on fuels (allach Form 4136) .................. 230 P A d Add lines 238 through 230....... ........ ... . .... .... . ....... .. .... . ... .... .. .. .. . ., ... . .. . .,. . Y 24 Estimated lax penalty. Check If Form 2220 is allached ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . ... 0 M E 25 Tax due. If the total of Jines 22c and 24 is larger than line 23d, enter amount owed. N See page 4 01 the instructions for depository method of payment. . . . . . . . . .. . . . . . . .. .. . .. . . . . . . . . . . . . ... T S' 26 Overpayment. If line 23d is larger than the total of lines 22c and 24, enter amount overpaid. . . . . . . . . . . . . . . . ... 27 Enter amount of line 26 ou want: Credited to 2001 estimated tax .. Relunded .. T A X A N o 1C 319,866 2 92,381 3 227,485 4 5 32,502 6 259,987 7 56,363 8 29,400 9 7,446 10 11 12 4,390 13 1;365 21,299 lO,l71 21,441 1l0,ll2 26l,987 -2,000 25 26 27 o Sign Here PRESIDENT Under penalties of perjury. 1 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. Deciaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. l~ ~ SIgnature 01 Officer' ~ Title Date Date Paid Preparer's Use Only Preparer's signature Checkll self_ employed 0 P00187624 EIN 23 - 232483 7 ~RJ. ~ 3/26/0l "m'enamele< ~SMOKER. S ITH & ASSOCIATES, PC yO"".;f "If-employed) 2 0 0 0 TECHNOLOGY PKWY adoc"',and2IP,ode MECHANICSBURG PA 17050 For Paperwork Reduction Act Notice, see the separate instructions. KeA Preparer's SSN or PT1N Phone No. In7) 441-9069 SFOUSl "/29/00 Form 11205 (200 . Form 1120S (2000) AIRE DESIGNERS, INC. f'i$~$1\l!(J Cost of Goods Sold (see nene 16 of the instructionsl 1 Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _, . . . . . 2 Purchases..... . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Cost of iabor. . . . . . . . . . .. . . . . . . . . .' .. . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Additional section 263Acosts (attach schedule)......................................................, 5 Other costs (attach schedule). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . BEE. .STATE1'!IEN.T. 3.. 6 Total. Add lines 1 through 5. . . . . . . . .. . . . . . . . . . . . . . . . . , . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 7 Inventory at end ot year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2. . . . . . . . . . .. .... . . . . . . . . . .. . . 98 Check all methods used for valuing closing inventory: (i) 0 Cost as described in Regulations section 1.471-3 (i1) Igj Lower of cost or market as described in Regulations section 1.471-4 (Iii) 0 Other (specify method used and attach explanation) ~ b Check If there was a wrltedown of "subnormal" goods as described in Regulations section 1.471-2(c).. ... .. .. ... . .. ... . . .... . . ... ... c Check Ii the LIFO Inventory method was adopted this tax year for any goods (if checked, attach Form 970). . . . . . . . . . . . . . . . . . . . . . . . . . . . d :~~~~~~~~n~~~~~~ ~~t=~~I:~~ .u.s.e~. f.O~ .t~i~.~ .y~~~ '. ~~~~ :~~~~~~~~ .(~~ ~~~~~~~ ~~ ~I.~~~~ . . . . . . . . . . . . . . . . ~I e Do the rules of section 263A (for property produced or acquired tor resale) apply to the corporation? . . . . . . . . . . . . . . . . . . . . . . . . .. 0 Yes f Was there any change in determining quantities, cost, or valuations between opening and closing inventory? . . . . . . . : . . . . . . . . . .. 0 Yes If "Yes," attach explanation. ;S:..,. ........ij$Ia\: Other Information 23-2451345 Page 1 2 83,233 3 4 5 9,148 a 92,381 7 8 92 381 ~O ,,0 L Iil N( Iil N( 1 Check method of accounting: (a) IilI Cash (b) 0 Accrual (c) 0 Other (specify) " 2 Refer to the list on pages 29 through 31 of the instructions and state the corporation's principal: (8) Business activify " SALES / CONSULTING (b) Product or service " AIR FILTERS 3 Did the corporation at the end of the tax year own, directly or indirectly, 50% or more of the voting stock of a domestic corporation? (For rUles of attribution, see section 267(0).) If "Yes," attach a schedule showing: (8) name, address, and employer identification number and (b) percentage owned. . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Was the corporation a member of a controlled group subject to the provisions of section 1561? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Check this box if the corporation has filed or is required to file Form 8264, Application for Reglstration of a Tax Shelter. . . . . . . . . . . . . . . ,.. 0 6 Check this box if the corporation issued publicly offered debt instruments with original issue discount. , . . . . . . . . . . . . . . . . . . . , . . . . . . ... 0 If so, the corporation may have to file Form 8281, Information Return for Publicly Offered Original lssue Discount Instruments. 7 If the corporation: (a) filed its election to be an S corporation after 1986, (b) was a C corporation before it elected to be an S corporation or the corporation acquired an asset with a basis determined by reference to its basis (or the basis of any other property) in the hands of a C corporation, and (e) has net unrealized built-in gain (defined In section 1374(d)(1)) in excess of the net recognized built-in gain from prior years, enter the net unrealized bullt-in gain reduced by net recognized bullt-in gain from prior years (see page 17 of the instructions).. . . . . . . . . ... $ 8 Check this box If the corporation had accumulated earnings and profits at the close of the tax year (see page 18 of the instructions) . . . . . . . . . . . . . . . . . . . : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .. . . . . .. ~ 0 Note: If the corporation 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 Oparations of U.S. Corporations, to this return. See Sohedule N for details. %$611111,11< Shareholders' Shares of Income, Credits, Deductions, etc. (a) Pro rata shara Items 1 Ordinary income (loss) '!rom trade or business activities (page 1, line 21). . . . . . . . . . . . . . . . . . . . . . . . . . .. 2 Net income (ioss) from rental real estate activities (attach Form 8825) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Gross income from other rental activities. . . . . . . . . . . . . . . . .. 3a b Expenses from other rental activities. . , . . . . . . . . . . . . . . . . .. 3b c Net income (loss) from other rental activities. Subtract line 3b from line 3a . . . . . . . . . . . . . . . . . . . . . . . . .. 4 Portfolio income (Joss): 8 Interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , b Ordinary dividends, . . , . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . c Royalty income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d Net short-term capltai gein (ioss) (attach Schedule D (Form 11205)). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e Net long-term capital gain (ioss) (attech Schedule D (Form 1120S)) .............................. (1) 28% rate gain (ioss) " (1) Total for year" 4e(2) 1 Other portfolio income (loss) (attach scheduie). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . 41 S Net section 1231 gain (loss) (other than due to casualty or theft) (attach Form 4797). .' . ... . . . " . ..... 5 6 Other income loss attach schedule ...................................,.................. 6 KFA I N C o M E (b) Total Amount -2,000 682 L o s S Form 11205 (20C For,m 1120S (2000) A$lInij(\ij.l~t.. NM v. .N ST T ~ P JAR UNEj SOFT TEE MTRM EAES N X N T C S E OT E I DO UN CS AIRE DESIG 'S, INC. 23-2451345 I Shareholders' Sh..(es of Income Credits Deductions etc. .:ontinued . (8) Pro rata share items 7 Charitable contribunons (attach schedule) .............................................. 7 8 Secnon 179 expense deduction (ettach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8 9 Deductions related to p,ortfolio income (loss) (itemize) ..........................,.......... 9 10 Other deductions (attach schedule) ... . . . . . . . . . .... . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . .. 10 11 a interest expense on investment debts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 118 b (1) Investment income included on lines 4a, 4b. 4c. and 4f above.. ..... . , ." ..' .... ... . .. .. 11b(1) (2) Investment expenses included on line 9 above... . . ... ... . .. . . ..... .... .... . . ... .,. .. l1b(2) 12. Credittor alcohol used as fuel (attach Form 6478) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 12. b Low-income housing credit: (1) From partnerships to which section 420)(5) applies for property placed in service before 1990 ... 12b(1) (2) Other than on line 12b(1) for properly placed in service before 1990 . . . . . . . . . . . . . . . . . . . . . . . 12b(2) (3) From partnerships to which section 42GJ(5) applies for property placed in service after 1969. . .. 12b(3) (4) Other than on line 12b(3) for property placed in service after 1989. . . . . . .. . . . . . . . . . . . . . . . . . 12b(4) c Qualified rehabilitation expenditures related to rental real estate activities WW!i@it: (attach Form 3466) .. .. . . .. .. . .. .. . .. . . . . . .. . . . . . . . .. . .. . . . . .. .. . . . . .. .. . . .. . . .. ... 12c d Credits (other than credits shown on lines 12b and 12c) related to rental real estate activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . , . . , . . . 12d e Credits related to other rental activities. . . . . . . . . . . . . . . . . . . . . .. . .... . . . . . . . . . . . . . . . . . , . .. 12e 13 Other credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14. Depreciation adjustiment on property placed in service alter 1966 .................. . . . . . . . . .. 14. b Adjusted gain or loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . .. 14b c Depietion (other than oil and 9as) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 14c d (1) Gross income from oil, gas, or geothermal properties. ..' . . .... .. .. . .... .. . ... ." . .. .... 14d(1} (2) Deductions allocable to all, gas, or geothermal properties. . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . 14d(2) e Other ad'ustments and tax preference items (attach schedule). . . . . . ..' . . .. . , . . . . . . . . . . . . . . .. 14e 15 a Name of foreign country or U.S. possession ... b Gross income sourced at shareholder level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . c Foreign gross income sourced at corporate level: (1) Passive. . . . . . . ... . . . . '.' .. . .... .' . .. .. . . ... .... ..... .... . ... . ......... . ..... . 15c(l) (2) Listed cale90ries (attach scheduie).... .... . ... .... . .. . . .... . ....... ..... ..... .. .... 15c(2) (3) Generallimitalion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15c(3) d Deductions allocated and apportioned at shareholder level: @)tttW (1) Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 15d(1) (2) Other... . . . . . . . . . . . . . . . . . . . . . . . . _ .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l5d(2) e Deductions allocated and apportioned at corporate level to foreign source income: (1) Passive...................................................................... 15e(1) (2) Listed cate90ries (attach scheduie)... .. . .. . ... . .. ......... .. . . . .. . ... . ..... .. ...... 15e(2) (3) Generallimitalion .. . . . .. . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15e(3) 1 Total foreign taxes (check one): ~ 0 Paid 0 Accrued. . . . . . . . . . . . . . . . . . . . .. . . . . .. _ 151 9 Reduction in taxes available for credit and gross income from all sources (attach schedule) . . . . . . .. 15g 16 Section 59(e)(2) expenditures: . Type ~ b Amount ~ 16b 17 Tax-exempt interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17 18 Other tax-exempt income. . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .. 18 19 Nondeductible expenses. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .. . . . . . .. . . . . . . . .. .. 19 20 Total property distributions (including cash) other than dividends reported on line 22 below. . ., . . .. 20 21 Other items and amounts required to be reported separately to shareholders (attach schedule) Total dividend distributions paid from accumulated earnings and profits . . . . . . . . . . . . . . . . . . . . . . . Income (loss). (Required oniy If Schedule M-l must be completed.) Combine lines 1 throu9h 6 in column b). From the result, subtract the sum of lines 7 throu h, 18', 1St, and 1Gb ........... I NE TS ET R C R E D I T S F o R E I G N T A X E S o T H E R 22 23 SFOUS18 "/29/00 Page (b) Total amount 682 1,443 3,993 12,467 -1,318 Form 11205 (20C Form 11205 (2000) 'm$lmia~I~,jUf:; [Slili:l!iltil~il\Il;;1:1 AIRE DESIG S INC. Balance Sheets r' ~ooks Assets 1 Cash...................................... 2a Trade notes and accounts receivable. . . . . . , . . . . . . b Less allowance for bad debts. . , . . . . .. . . . . ... . . , 3 Inventories ................................. 4 U.S. Government obligations . . . . . . . . . . . . . . . . . . . 5 Tax-exempt securities. . . . . . . . . . . . . . . . . . . .. . . . . 6 Other current assets (attach schedule) . . . . . . . . . . . . 7 Loans to shareholders ........................ . 8 Mortgage and real estate loans. . . . . . . . . . . . . , . . . . 9 Other investments (attach schedule). . . .... ... .... lOa Buildings and other depreciable assets. . . . . . . . . . . . b less accumulated depreciation. . . . . . , . . . . . .. . . . . 110 Depletable assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . b Less accumulated depletion. . . . . . . . . . . . . . . . . . . . 12 Land (net Of any amortization) ..... . . . . . . . . . . . . ' 138 Intangible assats (amortizable only) .........,.. . . b Less accumulated amortization. .. ... ............ 14 Other assets (attach schedula) . . . . , . . . . . . , .. . . . . 15 Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Liabilities and Shareholders' Equity 16 Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Mortgages, notes, bonds payable in less than 1 year. 18 Other current liabilities (attach schedula) ST.. 4, . . . 19 Loans from shareholders. . . . . . . . . . . . . . . . . . . . . . 20 Mortgages, notes, bonds payable in 1 year or more. . 21 Other liabilities (attach schadule) ..............., 22 Capital slock....,........................... 23 Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . 24 Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Adjustments to shareholders' equity. . . . . . . . . . , . . . 26 Less cost oftreBsury stock...................... 27 Totalliabllitias and sharaholders' e ult ........... 76 891 Reconciliation of Income (Loss) per Books With Income (Loss) per Return (You are not required to complete this schedule If the total assets on Hne 15, column (d), of Schedule L are less than $25,000.) Beginning of tax year (a) (b) 23-2451345 Page 24,350 21,441 520 56,073 78 034 , Net income (loss) per books. . . . . . . . . . . . . . . . . . . . . -5,311 5 Income recorded on books this year not 2 Income included on Schedule K, lines 1 through 6, included on Schedule K, lines 1 ttirough 6 not recorded on books this year (itemize): (itamize): a Tax-exempt interest $ 3 Expenses recorded on books this year not inciuded 6 Deductions included on Schedule K, Jines' on Schedula K, linas 1 through 11a, 1St, and 16b through 11a, 1St, and 16b, not charged (itemize): against book income this year (itemize): a Depreciation $ a Depreciation $ b Travel and entertainment $ 3,993 3,993 7 Add linas 5 and 6 . . . . . . . . .. . . . . . .. . . . 0 4 Add lines 1 throuoh 3. . . . . .. .. . . . . . .. .. . . . , .. . . . -1,318 8 Income (loSS) (Schedule K, line 23). Line 4 less line 7. -1,318 AnalYSIS of Accumulated Adjustments Account, Other Adjustments Account, and Shareholders' Undistributed Taxable Income Previously Taxed (sse page 27 ot the Ins~uctions) ~_'mwM+'21 (a) Accumulated adjustments account (b) Other adjustments account (c:) Shareholders' undlstnbuted taxable Income prevIouSly taxed 1 Balance at begInning of tax year. . . . . . . . . . , . . . . . . . 2 Ordmary income from page 1, line 21. . . . . . . . . . . . . . 3 Other additions, , ,. . SEE. .sTATEMEN.T,.5.. 4 Loss from page 1, line 21 . . . . . . . . . . . . . . . . . . . . . .. ( 5 Othar reductions. , . . SEE. .sTATEMEN.T, .6, , 6 Combine lines 1 through 5 . . . . . . . . . . . . . . . . . . . 7 Distributions other than dividend distributions . . . . . 8 Balance al end Of tax year. SUbtracllme 7 from lIne 6 ... 17,778 682 2,000) 3,993)( 12,467 12,467 o 5FOUS1 C 11/29/00 Form 11205(200 ~ SCHEDULE K-1 (Form 11205) Shareholder's Share of Income, Credits, Deductions, etc. OMS No. 1545-0130 Department of the Treasury Internal Revenue Service bealnnlna Shareholder's Identifying number ~12 6 -3 6 - 90 02 Shareholder's name, address, and ZIP code ROBERT BONANDUCCI 5540 WESTBURY DRIVE ENOLA, PA 17025 ~ See separate Instrucflons. For calendar year 2000 or tax year 2000, and endina ,2:0 Corporallon's Idenllfying number ~ 23 - 2451345 Corporation's name, address, and ZIP code AIRE DESIGNERS, INC. 5540 WESTBURY DRIVE ENOLA, PA 17025 2000 A Shareholder's percentage of stock ownership for tax year (see instructions for Schedule K-1) .... . . ....... .. ..... . .. . . .. .... B Internal Revenue Service Center where corporation filed lis relurn ~ CINCINNATI, OR C Tax shelter registration number (see instructions for Schedule K-1)... ... . . .... ......... . ......,. D Checl< epplicable boxes: II) 0 Final K-l (2) 0 Amended K-l 100 (a) Pro rate share Items Ib) Amount (c) Form 1040 fliers enter . the amount in column (b) on 1 Ordinary income (loss) from trade or business activities. . . . . . . . . . . . . . . . . . . .. 1 -2,000 I See pages 4 and 5 of the 2 Net income (loss) from renta.l real estate actMties. . . . . . . . . . . . . . .. . . .. . . . . . . 2 Shareholder's Instructions 3 Net income (Ioss)-from other rental activities. . .. ... ... . . .. . . . ... . . ..... . .. 3 lorScheduleK-1 (Form 11205). I 4 Portfolio income (loss): N a Interest...... . .. . ... .. .., . .... . .., .. .... ... . ... ...... ...... . ,.. .. 4a 682 Sch. B. Part I, line 1 c 0 b Ordinary dividends. . . . . . . . . . . . . . . . .. . . . . . . . . , . . . . . . . . , . . . . . .. . . . . . . 4b Sch. B. Part II. line 5 M E C Royalties........ .. .. .... .... . . ...... . . . .... .............. . .... .. .. 4c Sch. E. Part I. line 4 \ d Net short-term capitel gain (loss) . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . 4d Sch. D, line 5, col. (f) L e Net long-term capitel gain (ioss): 0 s (1) 28% rete gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . 4ell Sch. D. line 12, col. (g) s (2) Totel for yeer. . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4e(2) Sch. D, line 12. col. (f) f Other portfolio income (loss) (attach schedule) ....,........,............. 4f (Enter onappUcat:lle line 01 YOurrtl Se(l. Shareholder's Instructions 5 Net section 1231 gein (Ioss)(other than due to cesuelly ortheft) . . . . . . . . . . . . . . 5 for Schedule K-1 (Form 11208). 6 Other Income (Ioss)(attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . , . . 6 (Enter on applicaPle line of you(r1r 7 Charitable contributions (attach schedule) . . . . . . . . , . . . . . . . . . . , . . . . . , , . . . . 7 Sch. A. line 15 or 16 0' E 1 8 Section 179 expense deduction. . . . , . . . . . . . . . , . . . . . , . , . . . . . . . . . . . , . . . . 8 I See page 6 of the Shareholder' DO UN S Deductions relaled to portiolio Income (loss) (attach schedule) . . . . . . . . . . . . . . . S Instructions for ScheduleK-1 cs Other deductions (ettach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Form 112OS). 10 10 ~M~ lla Jnterast expense on investmemt debts .................................. 11_ Form 4952. line 1 VE, b (1) Investment income included on hnes 4a, 4b, 4c, and 4f above. .. ..... . . . .. lb(1 682 } See Shareholder's Instructions ENR ~T~ (2) Investment exoenses included on line 9 above. . . . . . . . . . . . . . . . . . . . . . . . . 1bl2 for Schedule K-1 (Form 1~20S). 12a Credit tor alcohol used as fuel. .... .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 Form 6478, line 10 b Low-income housing credit (1) From seclion 42(j)(5) partnerships for property pl_ced in service before 1990 . 2b(1 ! Form 8586, line 5 (2) Other than on line 12b(l) for property placed in service before 1990... . .. .. 2b(2 c (3) From section 42(j)(6) partnerships for properly placed In service efter 1989. . . 2b(3 R E (4) Other than on line 12b(3) for property placed In service after 1989..... . . . .. 2bl4 D 1 C Qualified rehabilitation expenditures , s related to rental real estate activities.. .'................................. 12C d Credits (other than credits shown on lines 12b and 120) related to rental real ! s.. pag. 7 01 tho Shacoholdee' estate activities. . . . . . . . . . . . . . . , . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . ... . . . 12d Instructions for ScheduleK;1 Credits related to other rental activities. . . . . . . , . . . . . . . . . . . . . . , . . . . . . . . . . . (Form 1120S). e 12e 13 Other credits. . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 For Paperwork Reduction Act Notice, see the Instructions for Form 11205. KFA SHAREHOLDER 1 Schedule K-1 (Form 1120S) 20< SFOUS3 12/01100 i Schedule K-1 (Form 1120S) (2000) AIRE 0 (e) Pro rata share items ~ P JAR UNE, SoFT T "" MTRM EAES NXN T c S " ,4a Depreciation adjustment on property placed in service after 1986. . . . .. . . . . . . . . . b Adjusted gain or loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Depletion (other than oil and gas) . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d (1) Gross income from oil, gas. or geothermal properties . . . . . . . . . . . . . . . . . . . . . (2) Deductions allocable to 011. gas, or geothermal properties. . . . . . . . . . . . . . . . . . e Other adjustments and tax preference items (attach schedule) . . . . . . . . . . . . . . . . . 158 Name of foreign counb-y of U.S. possession .. b Gross income sourced at shareholder level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Foreign gross income sourced at corporate level: (1) Passive. . .. . .. . ... .. .. .. .. .. .. .. . . . . .. . . .. .. . .. .. .. .. . . .. .. .. .. (2) Listed categories (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) General limitation . . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . d Deductions allocated and apportioned at shareholder level: (1) Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . , . (2) OIher . . . .. . . . . . .. . .. .. .. .. .. . .. .. .. .. . .. . . . . .. . .. .. .. .. . . . . .. .. e Deductions allocated and apportioned at corporate level to foreign source income: IW.f% (1) Passive. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Listed categories (attach schedule) . . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . . . . . (3) General limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I Total foreign taxes (check one): ~ 0 Paid 0 Accrued.................... 9 Reduction in taxes available for credit and gross income from all sources (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Section 59(e)(2) expenditures: a Type ~ b Amount........................................................... 17 Tax-exempt interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ .... . . . . . . . . . 18 Other tax-exempt inoome . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Nondeductible expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 20 Property distributions (including cash) other than dividend distributions reported to you on Form 1099-DIV . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . Amount of loan repayments for "Loans From Shareholders" . . . . . . . . . . , . . . . . , . . Recapture of low-income housing credit: a From section 420)(5) partnerships. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Other than on line 22a . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . , . . . . . . . . , . ., 22b 23 Supplemental information required to be reported separately to each shareholder (attach additional schedules it more space is needed): IGNERS, INC. 23-245134f ~ F o R E I G N T A X E S o T H E R 21 22 SHAREHOLDER 1 ROBERT BONANDUCCI 126-36-9002 SFOUS3A 11/30100 (b) Amount 12,467 1,443 Page (0) Form 1040 filers enter amount In column (b) on: } See page 7 of the } Shareho1der's Instructions for } Schedule K-l (Form 1120S) and Jnstructions for Form 6251. Form 1116. Part I Form 1115. Part II See Instruotions tor Form 1116 See Shareholder's Instructiol for SchedUle K-1 (Form 1120 3,993 Form 1040, line 8b I See pages 7 and 8 of th, Shareholders' lnstructior for Schedule K-1 (Form 1120S). Form 8611, line 8 Schedule K-1 (Form 1120S) 200 J .. Form 4562 Depreciation and Amortizat !l (Including Information on Listed Property) OMS NO. 1545-0-172 2000 Deparlment 01 the Treasury '"\Ilmal Revenue Service (99) Name(s} shown Or:! return . See separate Instructions. . AttaCh this form to your return. Attachment Sllquence NO. 67 IdenUfying number AIRE DESIGNERS, INC. Business oracU'Ilty to which this form relates 23-2451345 FORM 1120S ::<~t.t}.M: Election To Expense Certain Tangible Property (Sec:tion 179 Note: If you have any "listed properly:complllte Part V before you complete Pari!. 1 Maximum dollar limitation. If an enterprise zone business, see page 2 of the instructions. . . . . . . . . . . . . . . . . . . . . . . . 1 $ 20 , 000 2 Total cost of section 179 property placed in service. See page 2 of the instructions. . . . .. . . . . . . . . . . . . . . . . . . . . . . 2 3 Threshold cost 01 section 179 property belore reduction in limitation........................................ 3 $200,000 4 Reduction in limItation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Dollar limitation for tax year. Subtract line 4 from line 1.11 zero or less, enter -Q-.It married filing separately, see page 2 of the instructions. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . .. . . . . 5 6 (a) Deserlptiol'lO'l property en) Cost (business use only) (e) Elec1edcosl 7 Listed property. Enter amount from tine 27. . . . . , . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Total elected cost of section 179 property. Add amounts in column (e), lines 6 and 7 . . .. . . . . . . . . . . . . . . . . . . . . . . . 8 9 Tentative deduction. Enter the smaller of line 5 or line 8 ................................................. 9 10 Carryover of disallowed deduction from 1999. See page 3 of the instructions. . .. . . . . . . . .. . . . . . . . . , . . , .. . . ' , .. 10 " Business income limitation, Enter the smaller of business income (not jess 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 Carryover 01 disallowed deduction to 2001. Add lines 9 and 10, less line 12 .............. 13 Note: Do not use Part II or Part III below far listed property (automobiles, certain ether vehicles, cellular telephones, certain computers, or property used for entertainment, recreation, or amusement)./nstead, use Part V for listed property, biRililHUkl MACRS Depreciation lor Assets Placed In ServIce Only During Your 2000 Tax Year (Do not include listed properly.) Secllon A - General Asset Account Elecllon '4 It you are making the election under section 168(i)(4) to group any assets placed in service during the tax year into one or more genera! asset accounts, check this box. See page 3 of the instructions , . ' . . . ' . . . , . , . , . ' . . , . . . . . ' , . . ' . . . . . . . . . . . . . . , , . . . . . . . ,. .. 0 Section B - General Depreciation System (GDS) (See page 3 of the Instructions.) (tl) Month and te) Basis for depreCIation (d) Recovery tel (a} ClassIfication 01 property year"P2~,',',d In (business/Investment use . ... co"v,"I'.o'" (f) Melhod (g) DepreciatIon deduclion 'v only-seeinstructlons) penou " ., " 15. b 3-year property 5-year proper c 7 -year property d 1 a-year property e 15-year property I 2D-year property g 25-year property S/L S/L S/L S/L S/L Section C - Alternative Depreciallon System (ADS): (See page 5 01 the instructions.) S/L S/L S/L 25 27.5 7.5 39 MM MM MM MM h Resldentiat rental property Nonresidential reat property 16a b 12 rs 40 rs MM reciation (Do not include listed proparly.) (See page 5 of the instruotions.) GDS and ADS deductions tor assets placed in service in tax years beginning before 2000 . , , . . ' . ' . . , . . . . . . . . , . Property subject to section 168(1)(1) election. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 19 20,185 Summa (See page 6 of the Instructions.) Listed property, Enter amount from line 26. . , . . , ' . . . . , . . , ' . . . ' , . , . ' . . , ' . . . . . . . . . . . , . ' . , . . . . . . ' , , . . ., 20 21 Total. Add deductions trom line 12, lines 15 and 16 in column (g), and nnes 17 through 20. Enter here and on the appropriate tines of your return, Partnerships and S corporations - see instructions .' , . . ' , , . . . . . , . . . . . . . , , . .. 21 22 For assets shown above and placed In service during the current year, enter the portion of the basis attributable to section 263A costs, . , . ' , , , ' , . , " ' , , . . . . , , . . , , . . , . , ' . , . ., 22 K'FA For Paperwork Reduction Act NoUce, see page 9 of the instructions. GFOUS710/26100 1,114 21,299 Form 4562 (2000) 239 Do you have evidence to support the businessfinvestment use claimed? t Yes 0 No l23b If "'I9S," is the evidence written? ~Yes DNo (00) (b) (c) Businessl (d) (e) (f) (g) (h) (i) Type of property (flst Date p.lacedll'l Investment COSlor Basts. for deprecla\ion Recovery Methodl DllpreclalJon Elected vehit:les first) servIce "SO other basis (bUsIness/Investment period Convention deduction section 17f percentage useonlYJ cost AIRE DESIGNERS I~ 23-2451345 P,g. Listed Property (Include automobiles, certain other vehicles, cellular telephones, cerktincomputers, and property used for entertainment, recreation, or amusement) Note: For any vehicle for which you afe using the standard mileage rate or deducting lease expense, complete only 23a, 23b, columns (a) through (c) of Section A, all of Section S, and Section C if applicable. Section A- Depreciation and Other Information (Caution; See page 7 of the instructions for limits for passenger automobiles.) FOl""m4S~ 2000 I .&iiRM~.~::' Al 24 Property used more than 50% in a qualified business use (See page 6 of the instructions.): 95 ACURA 2/06/95 100.0 19,344 19,344 5.0 200DB HY 1,114 25 Property used 50% or less in a qualified business use (See page 6 of the instructions.): 26 Add amounts in column (h). Enter the total here and on line 20, page 1 ......,..",...,'..'..............., 26 1 , 114 27 Add amounts in column I. Enter the total here and on line 7, a e 1. . . . . . . . . . . . . . . . , . . . . . . . . , . . . . . . . . , . . . . . , . . . . . . . . . . . .' 27 Sectlon B - information on Use of Vehicles Complate this section for vehicles used by a soJe proprietor. partner, or other "more than 5% owner," or related person. l1 you provided vehicles to your employees] first answer questions in Section C to see 1f you meet an exception to completing this section for those vehicles. 28 Total businesslinvestment miles driven during the (.) (0) (e) (d) \e\ (l) year (do not include commuting miles-see page 1 VehIcle 1 Vehicle2 Vehicle 3 Vehicle4 Vehicle 5 Vehicle 6 of the instructions) ....................,.......... 29 Total commuting miles driven during the year. . . .. . .. ... 30 Total other personal (noncom muting) miles driven. . . . . . . 31 Total miles driven durlng.the year. Add lines 28 through 30 . . . . . . . . . 32 Was the vehicle available tor personal use during Yes No Yes No Yes No Yes No Yes No Yes No off-duty hours? . . . . .. . . . . . . . . .. . . . . . . . . . . . . . . . . . 33 Was the vehicle used primarily by a more than 5% owner or related person? .....................,......... 34 Is another vehicle available for persona) usa? . . . . . . . . . . Section C - QUesllons tor 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 8 of the instructions. Yes No 35 Do you maintain a written policy sta\ement that prohibits all personal use of vehicles, including commuting, by your employees? . . . . . . . . . 36 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.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Do you treat all use of vehicles by employees as personal use? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 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'? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Do you meet the requirements concerning qualified automobile demonstration use? See page 8 of the instructions. . . . , . . . . . . . . . . . . . . . Note: 11 your answer to 35, 36, 37,38 or 39 is "Yes," do not complete Section B for the covered vehicles. 'ifli(itiMW Amortization ~) ~) Date amortization Amortizable begins amount 40 Amortization of costs that begins during your 2000 tax ear (See page 8 Of the Instructions.): (a) Description of costs (d) Code section (e) AmortIZation perIod or percentage (f) AmortIzatIon for thIs year 41 Amortization of costs that began before 2000. . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 41 42 Total. Add amounts in column f. See a e 9 ofthe instructions for where to re art.............................. 42 807 807 Form 4562 (200 GFOUS7A 10/26/00 I 2000 FEDERAL STATEMENTS PAGE 1 CLIENT AIRE01 ~/26/Ul STATEMENT 1 FORM 1120S, LINE 5 OTHER INCOME CONSULTING INCOME ....... _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ _. $ COMMISSIONS EARNED . _ . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . SEMINAR INCOME ................................... _ . . . . . . . . . EXPENSE REIMBURSEMENT ............. _ . . . . . . . . . . . . . . . . . . . . . . . . MISCELLANEOUS INCOME ....................................... REFUNDS .................................................... AIRE DESIGNERS, INC. TOTAL $ 23-2451345 118:53l'fiIf 10,200 13,862 6,870 1,516 2S 29 32,502 STATEMENT 2 FORM 1120S, LINE 19 OTHER DEDUCTIONS AMORTIZATION .,. _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ AUTO AND TRUCK EXPENSE . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . AUTO LEASE ... _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BANK CHARGES ............................................... BUSINESS PROMOTION .................................. - . . . . . . COMPUTER EXPENSE '" _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CONTINUING EDUCATION ....................................... DUES AND SUBSCRIPTIONS ..................................... INSURANCE .................................................. LEGAL AND PROFESSIONAL '" .... ....-.. ...... ..... .... .... .... LODGING ...... _ . . . . . . . . . _ . . . . . . . . . . . . . . . . . . .. . - . . . . . . . . . . . . . MEALS AND ENTERTAINMENT EXPENSE .... ...... ..... .-.....-..... OFFICE EXPENSE ............................................. PAYROLL PROCESSING ......................................... PRINTING ...... _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SUBCONTRACTORS ............................................. TELEPHONE .... _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . TRAVEL ... _ . . . . . . . . . . . . . .'. . . . . . . . . . . . . .". . . . . . . . . . . . . . . . . . . . . WORKERS COMP ..................................... _ . . . . . . . . . TOTAL $ 807 8,241 6,512 89 6,432 14,878 8,167 705 7,841 4,158 4,293 3,993 8,573 445 9,908 7,379 2,288 14,707 696 110,112 STATEMENT 3 FORM 1120S, SCHEDULE A, LINE 5 OTHER COSTS FREIGHT .................,........................ _ . . . . . . . .. $ MATERIALS AND SUPPLIES ..................................... TOTAL $ 1,658 7,490 9, H8 f 2000 FEDERAL STATEMENTS PAGE 2 CLIENT AIRE01 3/26/01 STATEMENT 4 FORM 1120S, SCHEDULE L, LINE 18 OTHER CURRENT LIABILITIES AIRE DESIGNERS, INC. 23-2451345 PAYROLL TAXES PAYABLE. ..... ...... ....... ... .... $ PENSION PAYABLE ................................ TOTAL $ BEGINNING 2,520 $ o 2,520 $ ENDING o 21,441 21,44l STATEMENT 5 FORM 1120S, SCHEDULE M-2, LINE 3 OTHER ADDITIONS INTEREST INCOME ............................................ $ TOTAL $ 682 682 STATEMENT 6 FORM 1120S, SCHEDULE M-2, LINE 5 OTHER REDUCTIONS DISALLOWED MEALS AND ENTERTAINMENT.... ....... ...... ........ $ TOTAL $ 3,993 3,993 Oepartment of the TreallUry Internal Revenue Servk:e u.s. It. Jme Tax Return for an S Corpor! In ~ Do not file this form unless the corporation has timely flied Form 2553 to elect to be an S corporation. ~ See separate instrucllons. ; Form'~ 1205 OMS No. 1545_0130 1999 For calendar year 1999, or tax vear beQinninn 1999 and endlnn , A Effective date of election use C Emptoyer Identification number asan S corporation IRS AIRE DESIGNERS, INC. 23-2451345 label. 1/U/1993 Olher- 5540 WESTBURY DRIVE 0 Date Incorporated, B Buslnesllo eod,e no. wise, ENOLA, PA 17025 2/03/1987 (see pages 26-28) please E lotal assets (see page 1 0) print 422990 or type. $ 76,8911 F Check applicable boxes: (1) U Initial return (2) 0 Final relurn (3) 0 Changa in address (4) 0 Amended return G Enter number of shareholders in the corporation at end of the tax year. . . .. . . .. . . . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . " . . . . . . . . .~ Caution: Include on' trade or business income and ex enses on lines 18 throu h 21. See a e 10 of the instructions tor more information. 1 a Gross receipts or sales 3 4 4 , 54 2 b Less returns & allowances e Bal .... 2 Cost of goods SOld (Schedule A, line 8). . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 3 Gross profit. Subtract Une 2 from line lc . . . . . ., . . . . . . . . . . . .. . , ., . . . . . .. . . . . . . . . . .. . . . . . . . . . . . . . . . . 4 Net gain (loss) from Form 4797, Part II, line 18 (attach Form 4797) . . . . . . . . . . .. . .. . . .. . . .. .. .. . . . . . . . . . . . 5 Other income (Ioss)(attaoh schedule).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SEE. .SXATEMENT. . . ~ . . . 6 Total income loss. Combine lines 3 throu h 5 . . . , . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... 7 Compensation of officers. . . . . . . . . . . . . , . . . . . . . . , . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . .. .. . . . . . . . . . . . ~ 8 Salaries and wages (less employment credits) .............................................,....... E 9 Repairs and maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ 10 Bad debts. . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . ,. . ... . . .. . . . . . . . . . . . . . .. . . . . . . . . . . . 11 Rents..................................................................................... o 12 Taxes and licenses . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E I 13 Inlerest..... . . . . . . . . . . . . . . . . .' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., . . . . . . .. . . . . . . . . . . . o ~ U T 14 a Depreciation (ff required, attach Form 4562). . . . . . . . .. . . .. . . . . . . . . . . . .. 14a 25 , 245 C R b Depreciation claimed on Schedule A and elsewhere on return. . . . . . . . . . , .' 14b T ~ c Subtract line i4b from line 14a ... ...... ... .......... ............. ....... . ... ...... .. .. . . ....... o R 15 Depletion (Do not deduc1 011 and gas deplellon.) . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . .. ~ '; 15 Advertisin9................................................................................. ~ 17 Pension, profit-sharing, etc., plans . . . . . . . . . . . . , . . . , . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . I 18 Employee benefit programs. . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . .. . " . . . . . . . . . . . . .. . . . . . . . . . . . . . T 19 Other deductions (attach schedule). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . SEE. .STATEMENX . . .2. . . . ~ 20 Total deductions. Add the amounts shown in the far right column for lines 7 through 19. . . . . . .. . . . . . . . . . .... s I N C o M E T A X 21 Ordina income Joss trom trade or business activities. Subtract line 20 from line 6 . . . . . . . , . . , . . . . . . . . . . . . . 22 'Tax: a Excess net passive income tax (att. schedule) .. . . . . . . . . . . . . . . . .. 228 b Tax from Sohedule D (Form 1120S) . . .. . . . . . . . . . . .. . . .' . ..' . . . . . . . .' 22b 10 344,542 2 97,655 3 246,887 4 5 39,850 5 286 737 7 120,363 8 29,400 9 9,984 10 11 12 l2,007 13 64 140 25,245 15 15 6,525 17 37,250 18 19 69,364 20 3l0,202 -23,465 23 Payments: a 1999 estimated tax payments & amI applied from 199B relurn .. 238 b Tax deposited with Form 7004 . .. .. .. . .. .. . .. .. . . .. . .. .. .. . . .. .. ... 23b c Credll for Federal tax paid on fuels (attach Form 4136) .. . . . . . . . . . . . . . . .. 23c P A d Add lines 23a throu9h 23c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23d Y 24 Estimated tax penalty. Check il Form 2220 Is attached .. . .. . . . .. . .. . . .. . .. . .. . . .. . .. .. .. .. . .. .. ..~ 0 24 M E 25 Tax due. If the lotal of lines 22c and 24 Is larger Ihan line 23d, enler amount owed. N See page 4 of the Instructions for depository method of payment . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..~ 25 T S 25 Overpayment. If line 23d is larger than Ihe total of lines 22c and 24, enter amount overpaid ................~ 26 27 Enter amount of line 26 ou want: Credited to 2000 eslimated tax ~ Refunded ~ 27 Under penalties of perjury, I decla.re thai 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. A N o C Addllnes22a&22b(seepage14oftheinslforaddftaxes) ...............,................................... Please Sign Here ~ Signal",,,, Offi,LG Prtlparer's ~ signature' ~ PRESIDENT Dale Date TIHe o Preparer'$ SSN or PTlN 3/2l/00 ~SMOKER, SMITH & ASSOCIATES, PC r2000 TECHNOLOGY PKWY MECHANICSBURG PA Check If self_ 'mploy," ~ 0 206-58-7097 EIN ~ 23 -23248 3 7 Paid Preparer's Use Only Firm's name (or yours, If self-employed) and address 2fPcode ~ 17055 For Paperwork Reduction Act NoUce, see page 1 of separate instructions. KFA Form 11205 (19913 : F",;",120S(1999) AlRE DESIGNERS , - '.-.......,....-'.-, .\!AW Cost of Goods Sold lsee nane 15 nf the Instructions) 1 Inventory at beginning of year .................................................................... 1 2 Purchases ................................................................................... 2 86, 385 3 Cost nf labor. . . .. . . . . . . . . . . . . . " . . . . . . . . . . . .. . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .. . . .. . . . . . .' . . . .. . 3 4 Addltinnal section 2S3A cosls (allach schedule). . . . . .. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .. .. . . .. . . . . .. . . .. . 4 5 Other costs (allach schedule)......................................... .SEE. STATEMENT.. ..3.. 5 11, 270 6 Total. Add lines 1 lhrough 5. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .. . . . . . . . . . . . .. .. . . . . . . . . . . . . . 6 97, 655 . 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 97 655 INC 23 2451345 Page 98 Check aU methods used for valuing closing inventory: (I) 0 Cost as described in Regulations section 1.471-3 (Ii) 181 Lower of cost or market as dascrlbed in Regulations section 1.471-4 (iii) 0 Other (specify method used and atiach explanation) ~ b Check If there was a wr~edown of "subnormal" goods as described in Regulations section 1.471-2(c).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , c Check If the LIFO inventory method was adopted this tax yaar for any goods (If checked, attach Form 970). . . . . . ., . . . . . . . . . . . . . . . . . . . . d :~~~~t~~~;~~~~~ ;'~~ro~l;~ .~S.8.d. ~~ .t~i~. ~ .Y~~~'. ~~t~~ :~~~~~~~~ .{~~. ~~~~~~~ ~~ ~I.O~~~~ . . . . . . . . . . . . . . . . ~ e Do the rules of section 263A (for property produced or acquired for resale) apply to the corporation? . . . . . . . . . . . . . . . .' . . ., . . . .. 0 Yes Was there any change in determining quantities, cost, or valuations between opening and closing inventory? . . . . . . . . . . " . . . . . . .. 0 Yes If "Yes," atiach explanation. ;~Ii'j~W Other Information ~D ~D I IilI No IilI Nc 1 Check method of accounting: (a) IilI Cash (b) 0 Accrual (c) 0 Other (specify) ~ 2 Refer to the list on page 26 through 28 of the instructions and state the c.orporation's principal: (a) Business activity ~ SALES / CONSULTING (b) Product or service ~ AIR FILTERS 3 Did the corporation at the end of the tax year 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, address, and employer identification number and (b) percenlage owned. . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . .. . . . . . . . . . X 4 Was the corporation a member of a controlled group SUbject to the provisions of section 1561? . . . . . . . . ... ... . . . .. . . .. . . . . . . . . . . . .. X 5 At any time during calendar year 1999, did the corporation have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities aCcoLlnt, or other financial account)? (See page 15 of the instructions for exceptions and ming requiremenls for Form TO F 90-22.1.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . .. . .. . . . . . X If "Yes," enter the name of the foreign country... 6 During the tax year, did the corporation receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes," the corporation may have to file Form 3520. See page 15 ofthe instructions. . . . . . . . . . . . . . . . . . .. .. . . . . . . .. . . . . . . . . . . . . . . . 7 Check this box if the corporation has filed or is required to file Form 8264, Application for Registration of a Tax Shelter ..... . . . . . . . . . ... 0 8 Check this box if the corporation issued publicly offered debt instruments with original issue, discount. . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 0 If so, the corporation may have to file Form 8281, Information Return for Publicly Offere~ Original Issue Discount Instruments. 9 If the corporation: (a) flied Its election to be an S corporation after 1985, (b) was a C corporation before it elected to be an S corporation or the corporation acquired an asset with a basis determined by reference to its basis (or the basis of any other property) in the hands of a C corporation, and (c) has net unrealized built-in gain (defined in section 1374{d)(1)) in excess of the net recognized built-in gain from prior years, enter the net unrealized built-in gain reduced by net recognized built-in gain from prior years (see page 15 of the instructions). . . . . . . . .. Ill- $ 10 Check this box if the corporation had accumulated earnings and profits at the close of the tax year see a e 16 of the instructions .................................................................................... 0 Form 1120S (199 : Form' 1205 (1999) :;~b!fl(jijletK; OT E I DO UN cs NMN VET ENR 5TS T T ~ P JAR UNE, SDFT T EE MTRM EAES N X N T C S E F o T R A E X I E G 5 N [ N C o M E AIRE DES I GNE' ',INC. 23-2451345 I Shareholders' Sh&. _6 of Income, Credits, Deductions, etc. ' (a Pro rata share items 1 Ordinary income (loss) from trade or business aotivlties (page 1,line 21) . . . . . . . . . . . . . . . . . . . . . 2 Net Income (losS) from rental real estate ectlvilles (eilach Form 8825) . . . . . . . . . . . . . . . . . . . . . . . . 3 8 Gross income from other rental activities. . . . . . . . . . . . . . . . .. 3e b Expenses from otherrentaJ activities..................... 3b c Net income (loss) from other rental activities. Sub~ect line 3b from line 3a . . . . . . . . . . . . . . . . . . . . 4 Portfolio income (loss): a Interest income .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Ordinary dividends. . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Royalty income ................................................................. d Net short-term capital gain (loss) (ailach Scheduie 0 (Form 11205)) ........................ e Net long-term capital gain (loss) (attach Schedule 0 (Form 11205)): (1) 28% rate gain (ioss)~ (2) Total for yeer ~ I Other portiollo Income (loss) (ailach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . S Net section 1231 gein (loss) (other than due to casualty or theH) (eilach Form 4797) .. . . . . . . ., . . 6 Other income (loss (attach schedule) . . . . . . . . . . . . . . . .. . . . . . " ..... . . . . . . . . . . . . . . . . . . . 7 Charitable con~ibutions (ailach schedule). . . . . . .. . . . . . . . . . . . SEE. .S.TATEMEN.T. . ..:l 8 Section 179 expense deduction (ailach Form 4562) .. . . . . . .. . . . . . . . .. . . . . . .. . . . . .. . . .. . . 9 Deductions related to portfolio income (ioss) (itemize). . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 10 Other deductions (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '1 B Interest expense on investment debts.....,. ,., .......... . . .. " .... .,. ... . . " .. . ,.... b (1) Investment income included on lines 4a, 4b, 4c, and 4f above. . . . . . , . , . . , , . . . . . , . . , .. . . (2) Investment expenses included on line 9 above , . . . . . . , , . . , , . . . . . . . . . . . . , . . . . . . . . . . . , 12. Credit lor alcohol used as a luel (ailach Form 6478) . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . b Low-income housing credit: (1) From partnerships to which section 42Q)(5} applies for property piaced in service before 1990. . (2) Other than on iine 12b(1) for property placed In service before 1990. . . . . .. . . . ... . . .. . . . . .. (3) From partnerships to which section 42U)(5) applies for property placed in service after 1989 . . . (4) Other than on line 12b(3) for property placed in service eHer 1989 . . . . . . . . . . . . . . . . . . . . . . . c Qualified rehabilitation expenditures related to rental real estate activities (ailach Form 3488). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . " . . . . . . . .. . . . . . .. . . . . . . d Credits (other than credits shown on lines 12b and 12c) related to rental real estate activities. . . . . . , . . . , . , . , . . . . . . . . . . , , . . . . . , . . , . . . , . . . . . , . , , . e Credits related to other rentat activities. . . . . . . . . . . , . . . . . . . . . . . . . . ," . .'. . . . .. . . .. .. . .. . . . 13 Other credits. . . . . . . . . . .. " . . .. . .. . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . ... . . . . . . 14 a Depreciation adjustment on property placed in service after 1986. . . . . . . . , . . . . . . . . . . . . . . . . . . b Adjusted gain or loss. . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . , . . . , , . . . . , . . . . . . . , , . c Depletion (other than 011 end gas) . . . . .. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . .. . . . . . . . . . d (1) Gross income from oil, gas, or geothermal properties..... _...., . " '" . .... ,........ ... (2) Deductions allocable to oil, gas, or geothermal properties. , . . . . . . . . , . . , . . . . , , . . . . . . . . . . e Other edjustments and tax preference Items (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 8 Type of income ... b Name oi ioreign country or U.S, possession ~ c Total gross income from sources outside the United States (attach schedule). , . . . . . . . . . . , .. ... d Total applicable deductions and losses (ailsch schedule) . . . . . . . . . . . . . . . . . . . . . . . . ., . . . . . .. e Totel foreign taxes (check one): ~ 0 Paid 0 Accrued. .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . f Reduction in taxes available for credit (attach scheduie) . . . , . . . . . . . . . . . . .. . . . . . . . . . . . . . , . . g Other foreign tax Information (ailach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Section 69(e)(2) expenditures: a Type ~ b Amount..................................................................... ~ '7 Tax-exempt interest income, .. . . . . , . , , , . ,. . . . . . , . . , . . . . , . . . . . . . . . . . , . . . , . . . . . . .. ... 18 Other tax-exempt income. . . . , . . . . . . . .. . , . . . , . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . , . . . .. 19 Nondeductible expenses. . , . . , . . . . . . . . . , . . . . . . . .. . . .. . . . . . . . . . , . . . . . . . . . . , . . . . . . .. 20 Total property distributions (including cash) other than dividends reported on line 22 below. . . , . . . 21 Other items and amounts required to be reported separately to shareholders (ailach schedule). 22 Total dividend distributions paid from accumulated earnings and profits, . . . . . . . , . . . , . . , . . , , . . 23 Income (loss). (Required only if Schedule M-1 must be completed.) Combine lines 1 through 6 in column (b . From the result, subtract the sum of lines 7 throu h 11a, 15e, and 16b .....,.".. l o S 5 C R E o I T 5 o T H E R 12d 12e 13 15C 15d 15e 151 15g @fW@M Page (b Total amount -23,465 2,227 1,000 11,484 2,227 4,054 3,361 -33 722 Form "20S (199~ : Form 1120S (1999) f!~ullWLif AIRE DESIGNE'~ INC. Balance Sheets er I:..Jks Assets 1 Cash...................................... 28 Trade notes and accounts receivable. . . . . . . . . . . . . b Less allowance for bad debts. . . . . . . . . . . . . . . . " . 3 Inventories.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 U.S. Government obligations .. . . . . . . . . . . . . . . . . . 5 Tax-exempt securities. . . . . . . . .. . . . . . . . . . . . .. . . 6 Other current assets (attach schedule). . ST... .5.. 7 Loans to shareholders ........................ 8 Mortgage and real estate loans. . . . . . . . . . . . . . . . . . 9 Other investments (attach schedule)... .. . ....... . 108 Buildings and other depreciable assets. . . . . . . . . . . . b Less accumulated depreciation. . . . . . . . . . . . . . . . . . '18 Depletable assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . b Less accumulated depletion. . . . . . . . . . . . . . . . . . . . 12 Land (net of any amortization) .................. 13a Intan9ible assets (amortizable only) ... . . . . . . . . . . . b Less accumulated amortization. . . . . . . . . . . . . . . . . . 14 Other assets (attach schedule) . . . . . . . . . . .. . . . . . . 15 Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . Liabilities and Shareholders'.EqUIIy 16 Accounts payable. . . . . . . . . . . .. . . . . . . . . . . . .. . . 17 Mortgages, notes, bonds payable in less than 1 year. 18 Other current liabilities (attach schedule) ST....6.. 19 Loans from shareholders.. . . . . . . . . . . . . . . . . . . . . 20 Mortgages, notes, bonds payable in 1 year or more. . 21 Other liabilities (attach schedule) ................ 22 Capital stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Additional paid-in capital. . . . . . . . . . . . . . . . . . . . . . 24 Retained earnings. . . . . . . . . . . . . . . . . . .. . . . . . . . . 25 Adjustment to shareholders' equity. . . . . ST. . . .7.. 26 Less cost of treasury stock. . . . . . . . . . . . . . . . . . . . . 27 Total liabilities and shareholders' e ul ........... 150 716 Reconciliation of Income (Loss) per Books With Income (Loss) per Return (You are not required to complete this schedule It the total assets on line 15, column (d), of Schedule L are less than $25,000.) l$ilbeaul1il1\ll4"l Page End of tax year (c) (d 9,23E 9):mf'A}~#4ft.WjH f~SHW !~~Sm;~~NlM~;W~WthW\t!; 2,520 520 104,009 -30,158 76 891 1 Net income (loss) per books. . . . . . . . . . . .. . . . . . . . . -37,442 5 Income recorded on books this year not 2 Income included on Schedule K, lines 1 through 6, included on Schedule K, lines 1 through 6 not recorded on books this year (Itemize): (Itemize): a Tax-exemptinterest $ SEE ST 8 359 359 3 Expenses recorded on books this year not included 6 Deductions included on Schedule K, lines 1 on Schedule K, lines 1 through 1 la, 15e, and 1Sb through na, 15e, and lSb, not charged (itemize): against book income this year (itemize): . Depreciation $ a Depreciation $ b Travel and entertainment $ 3,361 3,361 7 Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . 0 4 Add lines 1 throUoh 3 .. . . . . . . . . . . . . . . . . . . . . . . . . -33 722 8 Income (lOSS) (Schedule K, line 23). Line 41ess line 7. -33,722 I"'. .....""'''....:'"'....~J ;gl!..il!.....e.'",,4..: AnalYSIS of Accumulated Adjustments Account, Other Adjustments Account, and Shareholders' Undistributed Taxable Income Previously Taxed (see page 24 cf the instructions) 1 Balance at beginning of tax year. . . . . . . . . . . . . . . . . . 2 Ordinary income tram page 1, line 21 . . . . . . . . . . . . . . 3 Other additions. . , . . SEE. .sTATEMENT. . . 9. 4 Loss from page 1, line 21 . . . . . . . . . . . . . . . . . . . . . . . 5 Other reductions.. .. SEE. .STATEMEN.T. .10 6 Combine lines 1 through 5 . . . . . . . . . . . . . . . . . . . . . . 7 Distributions other than dividend distributions . . . . . . . 8 Balance at end 01 tax year. Subtract line 7 from line 6 ........ (a)Accumulaled adjus1ments account (b)OlheradJustments account (c) Shareholders' Undistributed taxable Income previously taxed 54,861 2,227 23, 465)~ ':.:,..,:.,...... 15,845)( 17,778 17,778 Form 1120S(199S SCI:IEOULE K-1 (Form 1120S) I Shareholder's Share of Income, Credits, Deductions, etc. OMB No, 1545.0130 Del'artmef'lt of the Treasury Internal Revenue Service beainnina Shereholder's Idenlllylng number ..-12 6 - 3 6 - 9002 Shareholder's name, address, and ZIP code ROBERT BONANDUCCI 5540 WESTBURY DRIVE ENOLA, PA 17025 .- See seperate InstrucUons. For calender yeer 1999 or \aX yeer 1999 and endlna Corporallon's IdentifYIng number .-23 - 2451345 Corporation's name, address, and ZIP code AIRE DESIGNERS, INC. 5540 WESTBURY DRIVE ENOLA, PA 17025 1999 A Shareholder's percentage of stock ownership for tax. year (see instructions tor Schedule K-1) . . . . . . . . . . . . . . . . . . . . . . . . . . , . ..... B Internal Revenue Service Center where corporation flied Its return .- PHILADELPHIA, PA C lax shelter registration number (see instructions for Schedule K-1). ..... ..... ........ .......~ D Check applicable boxes: (1) 0 Final K-l (2) 0 Amended K-l 100 (a) Pro Tata share items (b) Amount (c) Form 1040 fliers enter the amount in column (b) on 1 Ordinary income (loss) '{(om trade or business activities. . . . . . . . . . . . . . . . . . . . . 1 -23,465 } 5.. pag" 4 and 5 of th. 2 Net income (loss) from rental real estate activities. . . . . . . . . . . . . . . . . . . . . . . . . . 2 Shareholder's Instrucllons 3 Netlncome (loss) trom other rental activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . for Schlldule K-1 (Form 11205). t 4 Portfolio income (lOSS): N a Interest. . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . , . . . , . . . . . . . . . . . . . . 4a 2,227 Sch. B, Part I, line 1 c 0 b Ordinary dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . , . . . . . . 4b Sch. B, Part II, line 5 .. E C Royalties. .. . . . . . . , . . . . . . . . . . . . . . . . . . . . , . . . . . . . . , . . . . , . . . , . . . . . . . . 4c Sch. E, Part I, line 4 \ d Net short-term capital gain (loss) . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4d Sch. D, line 5, col. (I) c e Net long-term capital gain (loss): 0 s (1l 28% rate gain (loss) . . . . . . . . . .. . . , . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . e(1) Sch. D, line 12, col. (g) 5 (2) Total for year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . . . . e(2) Sch. D, line 12, col. (f) 1 Other portfolio Income (loss) (attech schedule) . . . . . , . . . . . . . . . . . . . . . . . . . . . 41 (Enter on applicable line of yourrtr See Shareholder's InstructIons 5 Net section 1231 gain (loss) (other than due to casualty or theft) . .. . . , . . . . . . . . 5 for Schedule K-1 (Form 1120S~ 6 Other income (Ioss)(attech schedule) . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 (Enter on applicable line of your rtr DT 7 Charitable contributions (attech schedule) . . . . . . . SEE. LINE. 23. . . . .. . 7 1,000 Sch. A, line 15 or 16 EI 8 Section 179 expense deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 11,484 } See page S 01 the Shareholder': 00 UN 9 Deductions related to portfolio Income (loss) (attech schedule) . . . . . . . . . . . . . . . 9 Instructions for Schedule K-1 CS (Form 1120S). 10 Other daducllons (attech schedule) . , . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 ~..~ l1a Interest expense on investment debts. .. . . . . . . . . . . . . .; . .. . . .. . . . ... . '" 118. Form 4952, lin9 1 vET b (1) Investment income included on lines 4a. 4b. 4c, and 4f above. . . . . . . . . . . . . bll) 2,227 } See Shareholder's Instructions ENR ~T~ 12l Investment expenses included on line 9 above. . . . . . . . . . . . . . . . . . . . . . . . . b12\ forScheduleK-1 (Form ~1'ZOS). 12a Credit for alcohol used as fuel. . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . 128 Form 6478, line 10 b Low-income housing credit: (1) From saction 420)(5) partnerships for property placed in service before 1990 . b(1) ! Form 8586, line 5 1.2) Othar lhan on line 12b(1) for property placed in service before 1990.... .... b(2) . c (3) From section 42U)(5) partnerships for property placed in service after 1989.. . b(3) R E (4) Othar than on line 12b(3) for property placed In service after 1989. . . . . . . . . .. b(4) 0 t Qualified rehabilitation expenditures T c 5 related to rental real estate activities. . . .. . . . . . . . . .. . . . . . . . . . . . ., . '" . . . . 12c d Credi'cs (other than credits shown on lines 12b and 12c) related to rental real Is" p.g.. 7 of Ih. Sh."hold" estate activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 12d Instructions for Schedule K-1 (Form 1120S). e Credits related to other rental activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12e 13 Other credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . 13 For Paperwork Reduction Act Notice, see page 1 of Instructions for Form 1120S. KFA SHAREHOLDER 1 Schedule K-1 (Form 11205) 1ge Schedule K-1 (Form 1120S) (1999) ~ P JAR UNEI SOFT T EE MTRM EAES N xN T C S E AIRE I[" 'IGNERS , INC. 23-2451345 ~~ (c) Form 1040 tilers enter amount in column (b) on: } See page 7 of the } Shareholder's instructions tor } Schedule K-1 (Form 1120S) and Instructions far Form 6251, Form 1116, Check boxe, I Form 1116, Part 1 (a) ?ro Tata share items (b) Amount 4,054 F o R E I G N T A X E S 148 Depreciation adjustment on property placed in service after 1986.. .. ........... 148 b Adjusted gain or loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . . . .. . . .. . . .. 14b c Dapletion (other than oil and gas) . . . . . . . . . . . . . . . .. . . . . . .. . . . . . . . . . . . . . .. 14C d (1) Gross income from oil, gas, or geothermal properties.. . . . . . . . . . .. . .. . . . .. d(l) (2) Deductions allocable to 011, gas, or geothermal properties. . . . . . . . . . . . . . . . ., d(2) e Other adjustments and tax preference items (attach schedule) .. . . . . . . . . ., . . . ., 14e 15a Type of income .... b Name of foreign country or U.S. possession .... c Total gross income from sources outside the United States (attach soh) . . . . . . . . .. 15c d Total applicable deductions and losses (atlach schedule) .. . . . . . . . . . . . . .. . . . .. 1Sd e Total foreign taxes (check one): .. 0 Paid 0 Accrued. . . .. . . . . . . . . . .. . . ., 1se 1 Reduelion in taxes avallable tor credit (atlach schedule) .. . . . . . . . . . . . . . . . . . . .. 151 g Other forei n tax Information (attach schedule) . . . . . . . . . . .. . . . . . . . . . . ... . . .. 16g 16 Saction 59(e)(2) expenditures: a Type .. b Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . ., 16b 17 Tax-exempt interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17 18 Other tax-exempt income. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .' . . . .. 18 19 Nondeductible expenses. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., 19 20 Property distributions (including cash) other than dividend distributions reported to you on Form 1099--DIV . . . . . . . . . . , .. . . . . . . . . . . . . . . . . . . . . . . . . . 21 Amount of loan repayments for "Loans From Shareholders" . . . . . . . . . . . . . . . . . . . 22 Recapture of low-income housing credit: a From section 42OJ(5) pertnerships . . . . . . . . . . . . . . . . . . . . . . , . . . . . .. . . . . . .. . . I F 86 I" 8 . arm 11, me b Other than on line 22a." .. .. .. .. . . " . . . . .. . .. .. .. . .. . . .. .. .. .. . .. . . .... 22b 23 Supplemental information required to be reported separately to each shareholder (attach additional schedules if more space is needed): LINE 7 CHARITABLE CONTRIBUTIONS Form 1116, Part Ii Form 1116, Part iii See Instructlon.s for Form" 1 :IMt:: See Shareholder's Instructior forScheduJeK-1 (Form"20! o T H E R 3,361 Form 10401 line 8b I See pages 7 and 8 of \h, Shareholders' Instruction for SChedule K-1 (Form 11 20S). VARIOUS CASH CONTRIBUTIONS $ TOTAL $ 1,000 1,000 SHAREHOLDER 1 ROBERT BONANDUCCI 126-36-9002 , .j=DrT' 4562 ")epreciation and Amortizat~ 1 (Including Information on Listed Property) QMBNo.1545-0172 1999 Department of the Treasury Internal Revenue SerVice (99) Name(s) shown on return ~ See separate Instrucllons. ~ Allach this form to your return. Attachment Sequence No. 67 Idontlfying nlMlber AIRE DESIGNERS, INC. 23-2451.345 Business or activity to which this form relates FORM ll20S t..~Wt Election To Expense Certain Tan Ible Pro e (Section 179) (Note; If you have any "listltd properly,"comptete Part V Defore you complete Part t.) 1 Maxtmum dollar Iimltation. If an enterprise zone business, see page 2 of the instructions. . . . . . . . . . . . . . . . . . . . . . . . 1 $19 000 2 Total cost of section 179 property placed in service. See page 2 of the instructions.. .. .... . .., . . . .. . . . . . . . .. .. 2 11, 484 3 Threshold cost of section 179 property befcre reduction in limitation. . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 $ 2 0 0 , 000 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 0 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see page 2 ollhe instructions.. . . .. .. .. . .. .. .. .. . . .. . .. . .. .. . . .. .. .. . .. . .. .. . .. . .. . .. . . .. .. . . ... .. 5 19, 000 6 (a) Description of property (b) Cosl (business use only) (c) Eiecled cosl 25-YEAR MISe FURN. AND FIXTURES 658 658 5-YEAR CELLULAR PHONE SYSTEM 1,063 l,063 3-YEAR COMPUTER SOFTWARE 9,293 9,293 7-YEAR SAW 470 470 7 Usted property. Enter amount from line 27. . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . 7 0 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 1998. See page 2 of the instructions. '" ... ........... .... .. ......... 10 11 Business income Ilmltation. Enter the smaller of business income (not less than zero) or line 5 (see instructions)...... 11 12 Section 119 expense deduction. Add lines 9 and 10, but do not enter more than line 11. . . . . . . . . . . . . . . . . . . . . . . .. 12 13 Carryover of disallowed deduction to 2000. Add lines 9 and 10, iess line 12 .............~ 13 0 Note: Do not use Part II or Part [II below for listed property (automobiles, certain other vehicles. cellular telephones, certain computers, or property used for entertainment, recreation, or amusement). Instead, use Part V tor listed property. Ima~!lI1I1Mij MACRS Depreciation For Assets Plsceel In Service ONLV During Vour 1999 Tax Vesr (Do Not Include Listed Property.) Section A - General Asset Account Election ll,484 ll,484 o 19,OOO II 484 14 If you are making the election under section 168(i)(4) to group any assets placed in service during the tax year into one or more general asset accounts, check this box. See page 3 of the instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . .. .. 0 Section B - General Depreclallon System (GDS) (See page 3 of the instructions.) (b) Month and (c) Basis for depreciation (d) Recovery ($) year placed In (buslnessllnveslment use perIod C "tl (f) Method (g) Depreciafion deduction servIce only _ see instructIons) orwe., on 150 3-year prope b B-year property c 7 -year pro arty d 10-year roperty e 1B-year prcperty t 20-year property 9 2S-year property h Residential rental property 16a Class life b 12-year l2 rs c 40-eer 40 rs MM lP:~:llnt Other De reciation (Do Nollnclude Listed Property.) (See page 5 of the instructions.) 17 GDS and ADS deductions for assets placed in service in tax years beginning before 1999 . . . . . . . . . . .. . . . . . . ... 17 18 Property subject to section 168(f)(1) election. . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . " 18 19 ACRS and other de reciation.. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .... . . ., . . . . . . . . . . .. . . . . . .. 19 rp:jijffi;W!} Summa (See psge 6 of the instructions.) 20 Listed property. Enter amount from line 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 20 21 Total. Add deductions on line 12, lines 15 and 16 in column (9), and lines 17 through 20. Enter here and on the appropriate lines of your return. Partnerships & S corporations - see instructions. . . . . . . . . . . . . . . . . . . . . . . . . . .. 21 22 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 22 KFA For Paperwork Reduction Act Notice, see page 9 of the instructions. S/L S/L S/L S/L MM S/L Secllon C - Alternative Depreciation S stem (ADS): (See page 5 of the instructions.) S/L S/L S L MM MM MM Nonresidential real property 23,470 l,775 25,245 Form 4562 (1999) AIRE DESIGNERS, ., 23-2451345 Pag, Listed Property - Automobh"s, Certain Other Vehicles, Cellular Tele~...mes, 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 23a, 23b, columns (8) through (c) of Section A, all of Section S, and Section C if applicable. Section A - Depreciation and Other .Informatlon (Caution: See page 7 of the instructions for limits for passenger au~omobiles. 23a Do you have evidence to support the business/investment use claimed? Ves U No 123b If "Yes," is the evidence written? Ves UNo (a) (D) (c) Buslnessl (d) (0) (Q [g) (11) (Q Type of property (list Date placecl in investment Cost or Basis lor depreclatlon Recovery Method! Depreciation elected vehicles first) servIce uS< other basis (business/Investment perIod Cor.ventlol'1 t1educ\!on secllon 179 percentage useonJy) cost 24 Property used more than 50% in a qualified business use (See page 6 of the instructions.): 95 ACURA 2/06/95 100.0 19,344 19,344 5.0 200DB HY 1,775 26 Property used 50% or less in a qualified business use (See page-S of the instructions.): 26 Add amounts in column (h). Enter the total here and on line 20, page 1 ................................,... 26 1 , 775 27 Add amounts in column i. Enter the total here and on line 7,- a e 1. . . . . .. . . . . . ., . ,. . > . . . . . . . . . . . . . . . . . . . . ,. . . . . . . . . . .. ., 27 Section B - Information on Use of Vehicles Complete this section for vehicles used by a sole proprietor, partner, or other "more than 5% owner,n or related person. If you crovided vehicles to your employees, first answer questions in Section C to see if YOU meet an exception to completing this section for those vehicles. 28 Total business/investment miles driven during the year (a) (D) (e) (d) (0) (I) (DO NOT include commuting miles-see page' of the Vehicle' Vehicle 2 Vehicles Vehlcle4 VehicleS VehIcleS instructions) , . . . . . . , . . . . . . . . . . . . . . . . . , . . . . . . . . . . 29 Total commuting miles driven during the year. . . . . . . . . . . 30 Total other personal (noncommuting) miles driven, .. . . . . 31 Total miles driven during the year. Add lines 28 to 30.. . . . 32 Was the vehicle available for personal use during Ves No Ves No ves No Ves No Ves No Ves NO an-duty hours? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 33 Was the vehIcle used primarily by a more than 5% owner or related person? ............ . . . . . . . . . . . . . . . . . . . 34 Is another vehicle available for oersonal use? . . . . . . . . . . . Section C - Questions lor Employers Who Provide Vehicles lor Use by Their Employee. Answer these questions to determine jf you meet an exception to completing Section B fer vehicles used by employees who Bre not more than 5% owners or related persons. Ves No 35 Do you maintaIn a written pOlicy statement that prohibits all personal use of vehicles, including commuting, by your employees? . . . . . . . . . . 36 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"10 or more owners.. . . . . , ~ . . . . . . . . . , . . , . , , . . . , . . 37 Do you treat all use of vehicles by employees as personal use? . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . 38 Do you provide more than five vehicles to your employees, obtain intormation tram your employees about the use of the vehicles, and retain the information received? . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Do you meet the requirements concerning qualified automobile demonstration use? See page 8 of the instructions. . . . . . . . . . . . . . . . . . , . Note: If your answer to 35. 36, 37, 38 or 39 is "Yes,n you need not complete Section B for the covered vehicles. ;tQ~l\ttit Amortization (0) Description 01 costs (e) AmortIzable amount 4D 41 Amortization of costs that began before 1999.. . .. . .. . . , . ... ... . .. . . .. . ..........,.. . ...... .. .... . . . ... .. 41 42 Total. Enter here and on "Other Deductions" or "Other Ex enses" line of our return. . . , . . . . . . . . . . . . . . . . . . . . . . . . .. 42 807 807 Form 4562 (199! 1999 " " CLIENT AIRE01 FEDERAL STATEMENTS i AIRE DESIGNERS, INC. STATEMENT 1 FORM 1120S, LINE 5 OTHER INCOME COMMISSIONS EARNED ......................................... $ CONSULTING INCOME .......................................... EXPENSE REIMBURSEMENT ...................................... LEASE INCOME INCLUSION ..................................... SEMINAR INCOME ............................................. TOTAL $ PAGE 1 23-2451345 04:49 PM 10,442 13,200 2,199 359 13,650 39,850 STATEMENT 2 FORM 1120S, LINE 19 OTHER DEDUCTIONS AMORTIZATION ............................................... $ AUTO AND TRUCK EXPENSE .. .......... ..... ........ ......... '" AUTO LEASE ................................................. BANK CHARGES ............................................... BUSINESS PROMOTION ......................................... COMPUTER EXPENSE ........................................... CONTINUING EDUCATION ........................,.............. DUES AND SUBSCRIPTIONS ..................................... INSURANCE .................................................. INSURANCE .................................................. LEGAL AND PROFESSIONAL '" ..... ..... ..... ... '" .... ..... .... LODGING .................................................... MEALS AND ENTERTAINMENT EXPENSE. .,. ................ .... .... MISCELLANEOUS .............................................. PAYROLL PROCESSING ......................................... POSTAGE .................................................... PRINTING ................................................... SUBCONTRACTORS ............................................. SUPPLIES ................................................... TELEPHONE ................................................... TRAVEL ..................................................... WORKERS COMP ............................................... TOTAL $ 807 3,975 6,204 129 2,238 1,458 4,305 337 7,864 712 6,046 2,599 3,362 500 530 613 6,487 2,238 5,217 2,638 10,547 558 69,364 STATEMENT 3 FORM 11205, SCHEDULE A, LINE 5 OTHER COSTS FREIGHT ...................................... '. . . . . . . . . . . . .. $ MATERIALS AND SUPPLIES ..................................... TOTAL $ 658 10,61.2 11,270 :t.99.9 ( FEDERAL STATEMENTS ( PAGE 2 . CLIENT AIRE01 AIRE DESIGNERS, INC. 23-2451345 04:49 PM STATEMENT 4 FORM 11205, SCHEDULE K, LINE 7 CHARITABLE CONTRIBUTIONS VARIOUS CASH CONTRIBUTIONS ................................ . $ 1,000 TOTAL $ 1,000 STATEMENT 5 FORM 11205, SCHEDULE L, LINE 6 OTHER CURRENT ASSETS BEGINNING ENDING DUE FROM FILTER CUSTOMERS ..................... . $ 56,088 $ 0 PREPAID CORP TAXES ............................. . 183 0 UNAMORTIZED LEASE COSTS ....................... . 2,557 0 TOTAL $ 58,828 $ 0 STATEMENT 6 FORM 1120S, SCHEDULE L, LINE 18 OTHER CURRENT LIABILITIES BEGINNING ENDING DUE TO FILTER VENDORS .......................... . $ 8,745 $ 0 PAYROLL TAXES PAYABLE ......................... . 0 2,520 TOTAL $ 8,745 $ 2,520 STATEMENT 7 FORM 1120S, SCHEDULE L, LINE 25 ADJUSTMENT TO SHAREHOLDERS' EQUITY BEGINNING ENDING PRIOR PERIOD ADJUSTMENT ....................... . $ 0 $ -30,158 TOTAL $ 0 $ -30,158 STATEMENT 8 FORM 1120S, SCHEDULE M-1, LINE 2 INCOME ON SCHEDULE K NOT ON BOOKS LEASE INCLUSION INCOME .................................... . $ 359 TOTAL $ 359 1~9~ . FEDERAL STATEMENTS I PAGE 3 CLIENT AIRE01 AIRE DESIGNERS, INC. 23-2451345 04;4~ PM STATEMENT 9 FORM 1120S, SCHEDULE M-2, LINE 3 OTHER ADDITIONS INTEREST INCOME ............................................ $ TOTAL $ 2,227 2,227 STATEMENT 10 . FORM 1120S, SCHEDULE M-2, LINE 5 OTHER REDUCTIONS CONTRIBUTIONS .............................................. $ DISALLOWED MEALS AND ENTERTAINMENT .... .............. ....... SECTION 179 EXPENSE ........................................ TOTAL $ 1,000 3,361 11,484 15,845 Form 11205 U.S. InJ ..Ie Tax Return for an S CorporatL For calendar Use IRS Isbel. Other- wise, plell8e print E Total assets (SS8 page 10) 422990 or type. $ 150 F Check applicable boxes: (1) 0 Initial return (2) 0 Final return (3) III Change in address (4) 0 Amended return G Enter number 01 shareholders in the corporation at end of the tax year. . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . ;. ... Caution: Include ani trade or business income and ex enses on lines 1a throu h 21. See the instructions tor mare information. 1 a Gross receipts or sales 331 388 b Less returns & allowances c Bal ~ 1c 331 2 Cost of goods sold (Schedule A, line 8). . . . . . . . . . . . . . . .. . .... . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . ., 2 66 3 Gross profit. Subtract line 2 from line 1c . . ...... . '" . ... ... . ... .. . .... . .... .. ........ .... ...... .., 3 264 4 Net gein (1055) from Form 4797, Part II, line 18 (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 4 5 Other income (1055) (attach schedule). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Se.e. .Sta:temen:t . . .1. . . . 5 6 Tote' income loas. Combine lines 3 throu h 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... 6 7 Compensation of officers.....................,...........................,"..............,.... 7 ~ 8 Salaries and wages (less employment credits) ..................................................... 8 E 9 Repairs and maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 ~ 10 Bad debts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , , , . . . . . , . . . . . . . . . . . . .. . . . ., 10 ~ 11 Rents......,..................,.........,..,....,...,............................,........ 11 o n 12 Taxes and licenses . . . . . . . . . . . , . . , . . , . , . . . . . . . . . . . . , . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . , . . . .., . . . ., 12 E ~ 13 tnteres.t.........,............. . . . . . . . . . . , . . . . . . . , . . . . . . . . . . . . . . . . . , . . . . . . . . . , . . , . , . . . . . . .. 13 B 6 14 a Depreciation (if required, attach Form 4562). . . . . . . . . . . . . . . . . . . . . . . . . .. 14a 31 986 c ~ b Depreciation claimed on Schedule A and elsewhere on return. , . . . . , . . . , ,. 14b T F c Subtract line 14b from line 14a .. . . .. . . . .. .. . .. . .. .. .. .. .. . .. .. .. . . .. .. . . .. . ... .. ...... . . .. . . . .. 140 o ~ 15 Deplefion (Do not deduct ollsnd gas deplellon.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 15 ~ L 16 Advertising................................................................................. 16 ~ 17 Pension, profit-sharing, etc., plans , . . . . . , . . . . . , . . . , . . . . , . . . , . . . . . . . , , . . . , . . . . , . . , . . . . . . . . , . . . , " 11 I T 18 Employee benefit programs. . . . . . . .. . . . . . . . . . . . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . ... 18 ~ 19 Other deductions (attach schedule). .. ....... . ... ...... . .. ....... .. . Se.e. .Sta:tement. ..2. .., 19 6 20 Total deduc\\ona. Add the amounts shown in the far right column for lines 7 through 19 , . , . . . . . . . . . . . . . . . ,... 20 N S Department of the Treasury Internal Revenue Service 00 not flle this form unl...... the corporation has timely flied Form 2553 to elect to be sn S corporation. ~ See separete Instructions. ear 1998 or tax ear be Innln 19 C Emptoyw IdentificatIOn number 23-2451345 C Add lines 228 & 22b (see page ~4 of tne (nst icr a.dd\ taxes) . , . . . . . . . , , . . . . . . . . . . . , . . . . . , , . , , . . . . . . . , . . , . . . . . . . A 23 Payments: s 1998 estimated tax payments & amt applied from 1997 relurn .. 23a N D b Tax deposited wltl'1 Form 7004 . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . .. 23b c Cred~ for Federa' tax paid on fuels (attach Form 4136) . . . . . . . . . . . . . . . . .. 23c P A d Add lines 230 through 230. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23<1 Y 24 Estimated tax penalty. Check if Form 2220 is attached .................. . . . . . . . . . . . . . . . . . . . . . . . . .~ 0 24 M E 26 Tax due. If the total of lines 22c and 24 is larger than line 23d, enter amount awed, N See page 4 of the instructions for depository method of payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..~ 25 T S 26 Overpayment I! line 23d is iarger than Ihe total of lines 22c and 24, enter amount overpaid. . . . . . . . . . . . . . . ..~ 26 27 Enter amount of line 26 au went: Credited \0 1999 estimated I8X ~ Refunded ~ 27 Under penalties Of perjury, I declare thai t have examined thts return, Includlngaccomp.anylng schedules and siatemenls, and to the best of my knowledge and belief, It Is true, cOlTect, and com ~DeclarilUon ~~..~.':~parer(other that'. ti\X?ay~r) Is ba.sed on all information 01 which preparer has any knowledge. iii. C; 6J i [~) iii. PreBident , Signature 01 officer '-' Date" Tille Preparer's ~ Date ChElck If self- "oootu", DONALD R BURGARD ,mploY'd ~ 0 206-58-7097 FI,m"nam' lor iii. Smoker, Smith & Associates, PC EIN ~ 23-2324837 yours, if self-employed) ,.339 West Governor Road ZIP code .nd.dd'", Hershe PA ~ 17033 For,Paperwork Reduction Act Notice, see page 1 of seperBte Instructions. KFA 1998 endln A. EffecU'1le Date of election as an S corporation AIRE DESIGNERS, INC. 5540 WESTBURY DRIVE ENOLAr PA 17025 2 03 87 1 12 93 D Date Incorporated B New bUll. code no. t!tee pages 26-28) I N C o fA E 21 Drdinar income loss from trade or business activities. Subtract line 20 from line 6 .., . . . , . . . . , . . . , . . . . . . , . T 22 Tax: a Excess net passive income tax (att. schedule, . . . . . . . . , . . . . . . . . .. 220 A b Tax from Schedule D (Form 1120S) . . . . . . . . .. . . .. . . . . . . . . . . . . . . . . . .. 22b X 21 Please Sign Here OMS No. 1545-0130 1998 59 324 80 29 31 716 1 388 782 606 616 222 171 400 621 300 720 986 614 485 839 136 6 16 77 244 80 086 o Pre=parer's socIal security numj)er Paid Preparer's Use Only Form 11208 (leSE Form 11205(1998) AIRE DESIGNERS INC 23 2451345 P 2 " . - age liSjh~dj'~tl Cost of Goods Sold Isaa oaoa 15 of the instructions). 1 tnventory at beginning of year ............,....................................................... 1 800 2 Purohasas ................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 62.027 3 Cost at labor. . . . . . . . . . .. . . . . . . . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . . . . . . ., . .. . . .. . . . . .. . . . . . . . . . . . . . . 3 4 Additional saction 263A costs (attach schadula).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Otharcosts (attach schadula). .........................,.............. .S.ee.. statement... .3.. 5 3.955 6 Total. Add linas 1 through 5. . . . . . . . . . . . . . . .... .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 66.782 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 66.782 98 Check all methods used for valuing closing inventory: (I) 0 Cost as dascrlbed in Regulations seotion 1.471-3 (II) IE Lower of cost or market as described in Regulations section 1.471-4 (liI) 0 Othar (specity method used and attach axplanation) . b Check if there was a writedown of "subnormal" goods as described in Regulations section 1.471-2{c}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Check If tha LIFO inventory method was adopted this tax year for any 900ds (If checkad. attach Form 970).. . . . . . . . . . . .' . . . . . . . . . . . . . . d :~:~~~~~~~~i~ci :~t:rO~I~~ .~S~.d. ~~ .~i~.~~ .y~~~,.~~~~ :~~~~~~~~ .(~ ~~~~~~~ ~~ ~1.0~~~~ . . . . .. , . . . . . . . . . ~ e Do the rules of section 263A (for property produced or acquired tor resale) apply to the corporation? . . . . . . . . . . . . . . . . .. . . . . . . .. 0 Yes f Was thera any change in determining quantitias, oost, or valuations betwean opening and olosing invantory? . . . . . . . . , . . . . . . . . . .. 0 Yes n "Ves," attach explanation. {Slm "'e:,'" Other Information .0 .0 L IllI No IllI No 1 Cheok method of accounting: (a) IllI Cash (bl 0 Accrual (CIO Other (specity) . 2 Refer to the list on page 26 through 28 of the instructions and state the corporation's principal: (a) Businessactivity . SALES /CONSULTING (bl Produotor servica . AIR FILTERS 3 Did the corporation at the end Of the tax year own, directly or indirectly, 50% or more of the voting stock of a domestic corporation? (For rules of attribution, see section 267(0).) If "Yes," attach a schedule showing: (a) name, address, and employer identification number and (b) percentega owned. . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X 4 Was the corporation a member of a controlled group subject to the provisions of section 15617. . . . . . . . . . . . . . . . . . , . . . , . . . . . . . . . .. . , . X 6 At any time during calendar year 1998, did the corporaton have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? (See page 15 of the instructions for exceptions and filing requirements tor Form TO F 90-22.1.)................ ... . .......... .. ..' . . . ... . ...... ... .,. . .., ..... . . ... .. .. .... . X If "Yes," enter the name of the foreign country ... 6 During the tax year, did the corporation receive a distribution from, or was It the grantor of, or transferor to, a foreign trust? If "Yes," the corporation may have to file Form 3520. Sea page 15 of tha instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. .. . 7 Check this box if the corporation has filed or is required to file Form 8264, Application for Registration of a Tax Shelter. . . . . . . . . . . . . . .... 0 8 Check this box It the corporation issued publicly offared debtlnstrume~ts with original issue discount. . . ' . . . . . . . . . . . . . . . . . . . . . . . . .. 0 If 50, the corporation may have to file Form 8281, InformatIon Return for Publicly Offered Original Issue Discount Instruments. 9 If the corporation: (a) filed its election to be an S corporation after 1986, (b) was a C corporation before it elected to be an S corporation or the corporation acquired an asset wlth a basis determined by reterence to its basis (OT the basis of any other property) in the hands of Be corporation, and (c) has net unrealized built-in gain (defined in section 1374(d)(1)) in excess of the net recognized built-in gain from prior years, enter the net unrealized built-in gain reduced by net recognized built-in gain from prior years (see page 16 of the instructions).. .. , .. . .. ... $ 10 Check this box if the corporation had accumulated earnings and profits at the close of the tax year sea a a 15 of tha instructions ..............,...........,.......,.......,....................................... 0 , 00''''' 1 1 20S (1998) ,1; . ... lllltlitiI aT EI 00 UN cs NMN VET ENR STS T ~ P J ~ R UNEJ SOFT T EE MTRM E A E S N X N T C S E I N C o M E AIRE DESIGNER' INC. 23-2451345 Shareholders' Shar , ,,' Income Credits, Deductions etc. 8 Pro rata share Items 1 Ordinary income (loss) from trade or bUSiness aotivlties (page 1, Une 21) . . . . . . . . . . . . . . . . . . ., . 2 Net income (loss) from rental real estate activities {allach Form 8825). .. . . . . . . . . . . . . . . .. . . . . . 3 II Gross income tram other rental activities. . . . . . . . . .. . . .. . .' 3e b Expenses from ot'ner rental activities. . . . . . . . .. . . .. . . . . . ., 3b c Net income (loss) from other rental activities. Subtract line 3b from line 3a . . . .. . . . . . . . . . . . . . . . 4 PortloUo income (loss): a Interest income .....,......................................,.................... b Ordinary dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Royalty income ................................................................. d Net short-term capilal gain (loss) (allach Scnedule 0 (Form 1120S)) ........................ e Natlong-term capital gain (loss) (allach Schedule 0 (Form 1120S)): (1) 28% rate gein (ioss) ~ (2) Total for year ~ f Other porlfoUo income (loss) (allach scheduie) . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 5 Net section 1231 gain (loss) (other than due to casualty or theft) (allach Form 4797) . . . . . . . . . .. . 6 Other income loss) (attach schedule ................................................ 7 Charitable contributions (attech schedule). . . . . . . . . . . .. . . ... . .. . .. . . . . . . . . . . . . . . . . . . . . . 8 Section 179 expense deduction (allach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Deductions related to portlolio income (loss) (Itemize) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 10 Other deductions (allach schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . "111 Interest expense on investment debts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b (1) Investment income included on lines 48, 4b, 4C, and 4f above. . . . . . . . . . . . . . . . . . . . . . . .. . 2 Investment e enses included on line 9 above. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . 12. Credit for alcohol used as a fuel (allaoh Form 6478) . . . . . . . . . . .. . . .. .. . .. .. . . . . .. . . . . . . . . b Low-income housing credit: (1) From partnerships to which section 42G)(5) applies lor properly placed in service belore1990. . (2) Other than on line 12b(1) for property placed in service before 1990.. . ..... ... . ... ... .... (3) From partnerships to which section 420)(5) applies for property. placed in service after 1989 ... (4) Other than on line 12b(3) for properly placed in service after 1989 . . .... . '" ., . .. .. .. . ... c Qualified rehabilitation expenditUres related to rental real estate activities (allach Form 3468). . . . . . . . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . d Credits (other than credits shown on lines 12b and 12c) related to rental real estate activities.. .. .... . . .' .. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e Credits related to other rental activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Other credits .. . . .. .. . .. .. .. .. .. .. .. . .. .. .. .. . .. .. . .. . .. .. . . . .. .. .. .. . .. .. .. . . .. 148 Depreciation adjustment on property placed in service after 1986. . . . . . . . . . . . . . . . . . . . . . . . . . . b Adjusted gain or loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Depletion (other than oil and gas) . . , . . . . . . . . . . .. . . . . ,. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d (1) Gross income from oil, gas, or geothermal properties. : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Deductions ailocable to oil, gas, or geothermal properties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e Other ad'ustments and tax reference items attaoh schedule ............................. 15 a Type of income . b Name of foreign country or U.S. 'possession ~ c Total gross income from sources outside the United States (attach schedule).. ... . . ..... . . . ... d Total appUcable deductions and losses (allach schadule) . . . . . . . . . .. . . . . . . . . . . . . , . . . .. . . . . e Total foreign taxes (check one): ~ 0 Paid 0 Accrued.. . . . . .. .. . . . .. .. . .. .. . . .. . . .. .. 1 Reduction in taxes available for credit (attach schedule) . . . . . . . . . ... . . . .. . . >. . . . . . . . . . . . . . Other forei n tax information attach schedule ..............,.......................... 15 Saction 59(e )(2) expenditures: a Type ~ b Amount.............................."................................,.... ~ 11 Tax-exempt interest income. . . . . . . . . . . . . . . . . . . ., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Other tax-exempt income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . '.' . . . 19 Nondeductible expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . , . . . . . . . . . . . . . . . . . 20 Total property distributions (including cash) other than dividends reported on line 22 below, , >" . . 21 Other items and amounts required to be reported separately to shareholders (allach schedule). Total dividend distributions paid from accumulated earnings and profits. . . . . . . . . . . . . . . . . . . . . . Income (toss). (Required only if Schedule M-1 must be completed.) Combine lines 1 through 6 in column b. From the result, subtraot the sum of lines 7 throu h 11a, 15e, and 16b ........... l o s S C R E o 1 T S F o T R ~ E X I E G S N o T H E R 22 23 pags 3 b Total amount 80 086 1 460 11 603 6 060 1 460 7 244 3 289 5,733 63 883 AIRE DESIGNE INC. Page 4 Balance Sheets er BO"'^B Aa8e1s , Cash...................................... 21 Trade notes and accounts receivable. , . . . . . . . . . . . b Less allowance for bad debts. .. . . . . . . . . . . . . . . . . 3 Inventories................................. 4 U.S. Government obligations . . . . . . . . . . . . . . . . . . . 5 Tax-exempt securities. . . . . . . . . . . . . . . . . . . . . . . . . 6 Olherourrentessets (atteoh schedule).. St... .4.. 58 828 7 Loans to shareholders ......................,. 8 Mortgage and real estate loans. . . . . . . , . . . . . . .. . . 9 Other investments (attech scheduie). . . . . . . . . . . . . . lOa Buildings and other depreciabie assets. . . . . . . . . . . . b Less accumulated depreciation. . . . . . . . . . . . . . . . . . 11a Depletable assets. .. . . . . . .. . . . . . . . . . . . . . . . . . . b Less accumulated depletion. . . . . . . .. . . . . . . . . . . . 12 Lend (net of any amortization) .................. 138 Intangible assets (amortizabie only) ... . . . . . . . . . . . b Less accumulated amortization..............,... 14 Other assets (attech schedule) . . . . . .. . . . . . . . . . . . 15 Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . Uabllllles and Shareholders' Equity 16 Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Mortgages, notes, bonds payable in lesS than 1 year. 16 Other current liabilities (attach schedule) St....5.. 8 745 19 Loans from shareholders ...................... 20 Mortgages, notes, bonds payable in 1 year or more. . 21 Other liabilities (attach schedule) ................ 22 Capltalstock................................ 520 23 Additional paid-in capital .. .. .. .. .. .. .. .. .. .. .. 24 Retainedeamings............................ 86 141 451 25 Adjustment to shareholders' equity. . . . . . . . . . . . . . . 26 Less cost of treasury stock. . . . . . . . . .. . . . . . . . . . . Z7 Total liabilities and shareholders' e ul ........... 112 022 150 716 f$jljiil:Wi;IMAAt:l Reconciliation of Income (Loss) per Books With Income (Loss) per Return (You are not required to complete this schedule if the total assets on line 15, column (d), Of Schedule L are less than $25,000.) 1 Net Income (loss) per books. . . . . . . . . . . . .. . . . . . .. 60 281 5 Income recorded on books this year not 2 Income Included on Schedule K, lines 1 through 6, included on Schedule K, lines 1 through 6 not recorded on books this year (itemize): (itemize): 8 Tax-exempt interest $ See St 6 313 313 3 Expenses recorded on books this year not included 6 Deductions included on Schedule K, lines 1 on Schedule K, lines 1 through 11a, 15e, and 16b through l1a, 15e, and l6b, not charged (itemize): against book income this year (itemize): a Depreciation $ 8 Depreciation $ b Travel and entertainment $ 3,289 3 289 7 Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . 0 4 Add lines 1 throuoh 3 .. .. .. . . . .. . .. . .. . .. . .. . .. 63 883 8 Income flossl fSchedule K. line 23\. Line 4less line 7. 63.883 l$Iimiibl'liiWl!ijJ Analysis of Accumulated Adjustments Account, Other Adjustments Account, and Shareholders' Undistributed Taxable Income Previousl Taxed (see page 24 of the instructions) (a) Accumulated adJuslmenlsaccounl (b)Olheradjustments account (c) Shareholders' undIstributed taxable Income previously taxed 1 Balance at beginning of tax year.. , . .. . . . ... . .. . . . 2 Ordinary income from page 1, line 21. . . . . . . . . . . . . . 3 Other additions..... Bee. .Statemen.t... 7. 4 Loss from page 1, line 21 . . . . . . . . . . . . . . . . . , . . . . . 5 Other reductions... . Bee. .Statement.. . B. ( 6 Combine lines 1 through 5 . . . . . . . . . , . . . . . . . . . . . , 7 Distributions other than dividend distributions . . 8 Balance a1 end of tax ear. Subtract line 7 from line 6 . . . . o 80 086 1 460 20 952) 60 594 5 733 54 861 " . . SCHEDULE K-1 (Form 11205) Shareholder's Share of Income, Credits, Deductions, etc. OM6 No. 1545-0130 Department of the Treasury InterNl Revenue Service bea'nnino Shareholder'e Idenlltylng number ~ 12 6 3 6 Shareholder's name, address, and ZIP code ROBERT BONANDUCCI 5540 WESTBURY DRIVE ENOLA, PA 17025 ~ See ..pereto In8troollOO8. For calender year 1998 or tax yeer 1998 end endlno 19 9002 CorDorallon'eldenlllvlno number ~2 3-2451345 Corporation's name, address. and ZIP code AIRE DESIGNERS, INC. 5540 WESTBURY DRIVE ENOLA, PA 17025 1998 A Shareholder's percentage of stock ownership tor tax year (see instructions for Schedule K-1) . . . . . . . . ., . . . . . . . . . . . . . . . . . . .~ B InlsrnelRavenue Service Canter where corporetion flied Its return ~ Philadelphia, PA C Tax shelter registration number (see instructions for Schedule K-1)........ . ... . ... ...... ........ D Check applicable boxes: (1) 0 Final K-l (2) 0 Amended K-1 100~ (a) Pro rata share Items (b) Amount (c) Form 1040 filers enlar the amount In co\umn{b) on: 1 Ordinary income (loss) from trade or business activities. . . . . . . . . . . . . . . . . . . . . 1 80,086 l See pages 4 and 5 of 1he 2 Net income {loss} itom rental real estate activities. . . . . . . . . . . . . . . . . . . . . . . . . . 2 Shareholder's Instructions 3 Net income (loss) from otherrentalacti\lities. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 3 for Schedute K-1 (Form 11205). 4 Por\Iolio inoome (loss): I 1. 460 N a Interesl. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4e Sch. e, Part I, line 1 c 0 b Ordinary dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 4b Sch. e, Part II, line 5 M E C Royalties. . . . . . . . . . . . . . . . . .. . . .. ... ... . . . . . . . . . . . . . . . . . . . . .. . . .. . . 4C Sch. E, Part 1, line 4 \ d Net short-lsrm capital gain (ioss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4d Sch. D, line 5, col. (f) L e Net long-term capital gain (loss): 0 5 (1) 28% rate gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . el11 Sch. D, line 12, col. (g) 5 (2) .otal for year. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . e/21 Sch. D, line 12, col. (I) , Other portfolio income (loss) (altach schedule) ...............,.,........... 4' {Enter or\llppllcable line 01 ~C\.lr ftn } See Shareholder's Instructions 5 Not section 1231 gain (loss) (other than due 10 casualty or thelt).............. 5 -11. 603 for SChedule K-1 (FQt'm 11205). 6 Ofhar Income (loss) (altach schedulel .. . . . . , . . . . . . . . . . . . . . . . . . . . . . . .. . . 6 , (Enter on applicable Une Of your r1n oT 7 Charltebla contributions (altach schaduie) . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 7 Sch. A, line 15 or 16 E I 6 Section 179 expense deduction. , . . . . . . . . . . . . . . . , . . . . . . . . . , , . , , . . , . . . , a 6.060 Is" pag. 6 of tho Sharohold"" 00 UN II Deduotions related tc portfOlio income (loss) (attach schedule) . . . . . . . . . . . . . . . 9 Ins1ructlons for Schedule K-' 05 (Form 1120S). 10 Other deductions (altach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 ~M~ 11a Interest expense on investment debts "........,..............,........ lle Form 4952, line 1 VET b (1) Investment income included on Jines 4a. 4b. 4c. and 4f above. . ........... b111- 1.460 } See Shareholtler'r> Instructions ENR ~T~ 121 Investment exoenses Included on line 9 above. . . . . . . . . . . . . . , . . . . . . . . . . b12\ for Schr;tdule K-1 (Form' '2.05). 12a Credit for alcohol used as fuel. . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . .. . . '2a Form 6478, line 10 b L.ow-income housing credit: (11 From section 42G)(5) partnerships for property placed in ser\lice before 1990 . bill ! Form 8586, line 5 (2) Other lhan on line 12b(1) for property plaoed in s...\Iice before 1990. ... . ... bl21 c (3) From secllon 420)(5) partnerships for property placed In se",ice altar 1989. . . bl31 R E (4) Other than on line 12b(3) for property placed In service after 1989.. . . . . . . . . b/41 D I c Qualified rehabilitation expenditures T 5 related to rental real estata activities.. . . .. . .. . . . .. . . . . . . . . . . . . .' . . . . . . . . 12c d Credits (other than credits shown on lines 12b and 12c) reiated to rantal real Is" p.g.. 7 of tho Sh....hold" estate activities.................,.............,.....,....,...."... 12d lnstrucllons for Schedule K-1 Credits related to other rental activities. .' " ,. " . .,. .. .. ... ,.. . '" ...... . (Form 1120S}. e 12e 13 Other credlls. . . . . . . . , . . . . . . . . . . . . . , . . . . ' . . . ,. . . . . . . . . . . . . . . . . . . . . . 13 For Paperwork Reducllon Act Nollce, see page 1 ollnstrucllons lor Form 1120S. KFA Shareholder 1 Schedule K-l (Form lI20S) 19\ AlRE DE( ,NERS (a) Pro rata share Items 23-2451345 Page 2 (e) Form 1040 filers enter. amount in column (b) on: 7 244 } Seepaga70fthe } Shareholder's Instructions for } Schedule K-l (Form 1120S) and instructions tor Form 6251. Form 1116, Checl< bcxes ~ Form 1116,Partl INC. . ~~edyle K-l (Form 1120S) (1998) . S P JAR U,M,E t SOFT T EE MTRM E A E 5 N xN T C S E F o R E I G N T A X E S \ (b) Amount o T H E R 5 733 148 Dapreclatlon adjustmant on property placed In service after 1986. .. . . . . .. . . . . . . b Adjusted gain or loss. . . . . . . . . . . . .. . . .. .. . . . . . . . . . . . . ... .... . . ... . . . . . c Depletion (other than 011 and gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d (1) Gross Income from all, ges, or geothermal properties. . . . . . . . . . . . . . . . . . . . . (2) Deductions allocable to all, gas, or geothermal properties. . . . . . . . . . . . . . . . . . e Other ad'ustments and tax eterence Items attach schedule ................. 168 Type of income ... b Nama of foreign country or U.S. possession .. c Total gross income from sources outside the United States (attach seh) . . . . . . . . . . d Total applicable deductions and losses (atiech schedule) . . . . . . . . . . . . . . . . . . . . . e Total foreign taxes (checl< one): ~ 0 Paid 0 Accrued.. . . . . . . . . . . . . . . . . . . f Reduction in taxes available for credit (attach schedule) . . . . . ... . . . . . . . . . . . . . . Other forei n tax Intormation attach schedule ............................. 16 Section 59(e)(2) expenditures: a Typa ~ b Amount........................................................... 17 Tax-exempt interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Nondeductible expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Property distributions (lnoluding cash) other than dividend distributions reported to you on Form 10S9-DIV . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . 21 Amount of loan repayments for "Loans From Shareholders" . . . . . . . . . . . . . . . . . . . 22 Recapture of low-income housing credit: a From saction 420)(5) partnerships. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . } Form 8611, line B b Other than on line 22a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . .' 22b } 23 Supplemental information required to be reported separately to each shareholder (attach additional schedules If more space is needed): Form lllB, Part II Form 1116, Part III See lnstrucUons for Form' ,'8 See S\1ve\1older's Ins'lruetlom for Schedule K-1 (Form1120S; 3 289 Form 1040,IIne 8b I See pages 7 and 8 of the Shareholders' Instructiom tor Schedule K-l (Form 1120S). Shareholder 1 126-36-9002 ROBERT BONANDUCCI . " For~ "4562 Jpreciation and Amortizatiol (Including Information on Listed Property) OMS No. 1546-0172 1998 D~~tlMn\ 01 the. lr&l.sury Internal Revenue Service S9 Name(s) shown 00 return .. See se orate Instructiona. .. Attach this form to your return. Attachment se uence No. 67 tdllntny\ng number AIRE DESIGNERS INC. 23-2451345 BusIness or acltvlty to whICh this ~ormre\il.\es Form 1120S ~M :..~....ft~W* Election To Ex ense Certain Tan Ible Pro rt Section 179 Note: If you have any -Itsted property, 'complete Part V before you complete P..rt I.) 1 Maximum dollar limitation. If an enterprise zone business, see page 2 of the Instructions. . . " . . . . . . . . . . . . . . . . . . . . 1 18 500 2 Total cost of section 179 property placed in service. See page 2 of the instructions ............................ 2 12 097 3 Threshold cost of section 179 proparty before reduction in limitation. . . . . . . . . . . . . . . . . . . . . . . . _ . _ . . .. . . . . . . . . . 3 200 000 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . 4 0 S Dollar limitation tor 'tax year. Subtract Une 4 from line 1. If zero or less, enter -0-. If married filing separately, see a e 2 Of the instructions.,.............................,...............,.........,........... 5 6 7-Year fa) DescrIption of property EQUIPMENT (b) Cosl (bUsiness use only) 6 060 (c) Elecledcost 6 060 7 Listad property. Enle< amount from line 27........ . ..... . ... ... .... .... ......... . .. 7 0 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 .. . . . . . . . .. . . . . . . . . . . . . . . " 8 6 9 l"enwdive deduc\lon. Enter the smaller of line 6 or line 8 .....,.,......,.............................,.'.. 9 6 10 Carryover of disallowad deduction from 1997. Sae page 3 Of the Instructions.. .. .. ..... . . .. ..' . ...... .... .' .. 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (seeinsb"uctions). . .. .. 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 1999. Add lines 9 and 10, lass line 12 ............... 13 0 Note: Do not use Part Il or Part III below for listed property (automobiles. certain other vehicles. cellular telephones, certain computers, or property used for entertainment, recreation, or amusement). Instead, use Part V for listed property. [%;_& MACRS Depreciation For A9Sa1s Placed in SerVice ONLY During Your 1888 Tax Year (Do Not Include Listed Property.) SecUon A - General Asset Account ElecUon 14 If you are making the election under section 168(i)(4) to group any assets placed in service during the tax year into one or more general asset accounts, check this box. See page 3 of the instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .... 0 Section B - General De reclaUon S atem GDS Sae a e 3 Of the instructions.) (8) C)asslflcallon Of property (c) Basis for deprectatlon (bUBlnlllSSJlnvestment use onIYrS&6Instrucllons) (d) Recovery p&rlod (0) Oonventlon (f) Method (g) Depreciation deduclion 302 326 16a S b 12 rs S 40 rs MM S other De reciation Do Not Include Listed Pro er . (See a e 6 of the instructions. 17 GDS and ADS deductions for assets placed in service in tax years beginning before 1998 . . . . . . . . . . . . . . . . . . . . . 18 Proparty subject to section 168(f)(1) elaction . .. . .. . . .. . .. . .. .. .. . . .. . .. .. .. .. . . . . , .. . . . .. . . .. . . .. .. . 19 ACRS and other de reciation. . . . . . . , . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ll\liihilMi Summa (See age 6 of the instructions. 20 Usted property. Enter amount from line 26 . . . . . . , . . . . . . . . . , , . . . . . . . . . . , . . . . , . . . . . . . . . . . . . . . . , , . . . , . . 21 Total.. Add deductions on line 12., lines 15 and 16 \n column (g), and lines 17 through 20. Enter here and on the appropriate lines of your return. Partnerships & S corporations - see insb"uctions . . . . . . . . . . . . , . . . . . . . . , . . . , . . 22 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs. . . . . . . . . . . . . , , , . , . . . . . . , . , . . . . , , . . .. 22 KFA For Paperwork Reduction Act Notice, sae 01 tha separale instructions. L L L 17 21 995 18 19 7 588 20 1 775 21 Form 4562 (1998) "or~4:$6" ~998 . ",' .. ....: "i9i"" AIRE DESIGNERS IN 23-2451345', P". 2 Listed Property - 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 23a, 23b, columns (a) through (e) of Section A, all cf Secticn B, and Section C If epplicable. Section A - DeDreclatlon and Other Information (Caution: See Dace 8 of the instructions for limits for oassenger automobiles. 23a Do you have evidencelo supporllhe business/investment use claimed? Il!I Ves 0 No l23b If "Ves," is the evidence written? IllIVes ONO (a) (1)) (c) Buslnessl (d) (0) (f) ~ (h) 01 Ty;Jo ot property (l\st Da.\ep\acetl\n lrwutmont Castor Basis lor deprecIatIon Recovery Mlttl10dl DeprecIation Elected vehicles first) service u., other basts (busIness/Investment period Convention deductJon sectlon17a percentage ulleonly) cOllt 24 Prooerlv used more lhan 50% in s ousllfied business use (See page 7 of the instructions.): 95 ACURA 2/06/95 100.0 19.344 19.344 5.0 200DB HY 1 775 2e Add amounts in column (h). Enter the total here and on line 20, page 1 .................................... 26 27 Add amounts in column i. Enter the total here and on line 7 a e 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SecUon B - Inlormallon on Use 01 Vehicles Complete this section for vehicles used by s sole proprietor, partn~r, or other "more than 5% owner," or related person. 25 Pro e used 50% or less in a uallfied business use See a e 7 of the instructions. : Il VOU Dfovtded vehicles to )lour employees, first answer Questions in Section C to see if you meat an exception to completing this section for those VB lcles. 28 Total business/investment miles driven during the year (a)VehlcJe 1 (b)Vehicle2 (c)Vehicie:3 (d)Vi!lhicle4 (e) VehIcle 5 (f}VehtcleB (DO NOT include commuting miles) . . . . . . . . . . . . . . . . . . 29 Total commuting miles driven during the year. . . . . . . . . . . 30 Total other personal (noncommuting) miles driven. . . . . . . 31 Total miles driven during the year. Add lines 28 to 30. . . . . 32 Was the vehicle available for personal use during Ves No Ves No Yes No Ves No Yes No Ves No off-duly hours? .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 33 Was the vehicle used primarily by a more than 5% owner crrelatedpBrSon7 ....... ....... ....... ...... .... 34 Is another vehicle available for oersonal use? . . . . . . . . . . h' Section C - Questions lor Employers Who Provide Vehicles lor Use by Their Employees Answer these questions to determine If you meat an exception to completing Section B tor vehioles used by employees who are not more than 5% owners or related persons. Ves No 35 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by your employees? . . . . . . . . . 36 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See page 9 of the instructions for vehicles used by corporate officers, directors, or 1% or more.owners.... '.' .... .......... ......... 37 'Do you treat all use of vehicles by employees as parsonal use? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Do you provide more than five vehicles to your employees, obtain intormation irom )lour employees about the use of the vehicles, and retain the information received? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . 39 Do you meet the requirements concerning qUBllfied automobile demonstration use? See page 9 of the instructions. . . . . . . . . . . . . . . . . . . . Note: If your answer to 35, 36, 37, 38 or 39 is "Yes," you need not complete Section B for the covered vehicles. 'liP.tUb Amortization (a) Descrtptlol'\ o~ coste (1)) Date amortlzaUol'\ begins (1:) AmortIzable amount 40 Amortization of costs that be ins durin 41 Amortizationofcoststhatb an before 1998. .... ... .... .,. ... ,......... ....... .............,........... 41 42 Total. Enter here and on "Other Deductions" or "Other Ex enses" line of our return, . . . . . . . . . . . . . . . . . . . . . . . . . . . .' 42 , , .' Form . ... 4797 Jes of Business Property (Also Involuntary Conversions end Receplure Amounts Under SecUons 179 end 280F(b)(2)) . Altsch to your tax relurn. . See separete InstrucUons. OMS No. 1545.0184 1998 Department of the Treasury Internal Revenue ServIce (99) Name(s) shown on return Attachment Sequence No. 27 Identifying number AIRE DESIGNERS INC. 1 Enter here the gross proceeds from the sale or exchange of real estate reported to you tor 1998 on Form(s) 1099-8 or. subsUtute stalement thet ou will be includin on line 2 10 or 20 .. . ...... . . . . ... ... .. . . .. .. .. .. . . . . ...... . . 1 5 000 !Y!Bif41 Sales or Exchanges of Properly Used in a Trade or Business and Involuntary Conversions From Other . - .. Than Casualty or Theft - Properly Held More Than 1 Year 3 Gain, If any, from Form 4684, line 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , .. .. . . . . . . . . . 3 4 Section 1231 gain from installment sales from Form 8252, 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 ether than casualty or theft. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6 7 Combine lines 2 through 6 in columns (9) and (h). Enter gain or (loss) here, and on the appropriate line as follows: Partnerships - Report the gain or (lOSS) following the Instructions for Form t065, Schedule K, line e. Skip lines e, SiI, t 1, and 12 below. 5 corporations - Report the gain or (Ioas) followIng the instructions for Form 1 1205, Schedule K, lines 5 and 6. Skip lines 8, 9, 11, anel 12 below, unless line 7, column ({I) Is a gain and the S corporation Is subject to the capllal gains tax. All others - If line 7, column (g) Is zero or a loss, enter that amount on Une 11 belOw anel skip lines 8 ancl9. If line 7, column (g) Is a gain and you did not have any prIor year sectlon 1231 losses, or they were recaptured In an earlier year, enter the gaIn (lOSS) In each cOlumn as a long-term capital gain or (lOSS) on SchedUle 0 and skip lines B, 9, and 12 below. S Nonrecaptured net section 1231 losses from prior years (see instructions). . . .. , . , . . . . . . . . . . . . . . . 8 9 Subtract line 8 from line 7. For column (g) only, If the result is zero or less, enter -0-. Enter here and on the appropriate line{s) as follows (see instructions): , . . . , . . , . . . . , , , , , , . . . . , . , 9 S corporations - Enter only the gaIn Incolumn(g)OnSchedule D (Form 11205),lIne 14and skip lines 11 and 12 below. All others - If line 9, column (g) Is zero, enter the gain from line 7, column (g) on Une 12 below.-If line 9, column (9) Is more than zero, enter the amount from line S, column (g) on line 12 below, and enter the gain or (loss) In each column of line 9 as a long-term capital gain Of (lOBS) on Schedule D. * COfpOfaUons (other than S corporation) should not complete column (h). Partnerships and S corporallons must complete column (h). All others must complete column (h) only If line 7. COlumn (g), is a gain. Use column (h) only to report pr6-t 998 28% rate gatn (or loss) from a 1997-98 fiscal year partnership or Scorporalion. J.'''''''''......;j il.,,,,,,.\lf;% 10 Ordin Ordinary Gains and Losses sins and losses not included on lines 11 throu held 1 ear or less: 11 Loss, if any, from line 7, column (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Gain, if any, from line 7, column (g) or amount from line S, 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 26 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 in column (g). Enter 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 empioyee on Schadule A (Form 1040), line 22,Idantify 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. ., . , ., . ... , .. , . .. .. .. . . . .,. ... . . . ., , .. . . . , , .. . .. , . , , . . . KFA For Paperwork. Reduction Act Notice, see separate Instructions. Form 4797 (19~ ~{ , , . , ~ '1998 ' Federal Statements AIRE DESIGNERS, INC. Client AIRE01 I UI/14/"" Statement 1 Form 11205, Line 5 Other Income COMMISSIONS EARNED . . . . . . . . . . . . . . . . . . . . .. . .... . . . .. $ CONSULTING INCOME . ... . . " .................... . . . . . EXPENSE REIMBURSEMENT . . . . . . . . . . . . . . . . . . . . . . . . .. ..... LEASE INCOME INCLUSION ....... . . . . . . . . . . . . . . . . . . . SEMINAR INCOME ... . . . . . . . . . . . . . . . . . . . . . . .. .... .... Total $ Statement 2 Form 11205, Line 19 Other Deductions AUTO EXPENSE ..... . . .. ..... ....... ............ . '" $ AUTO LEASE .......... ... . .. . . . . . . . . . . . . . ., ., . . BANK CHARGES . .. ... .... .., .............. . . . . ., .... . BUSINESS PROMOTION ., . . . . . . . . . . . . . .. .. .., ........ COMPUTER EXPENSE .,. . . . ... . . . . . . .. .... . . .. ........ CONTINUING EDUCATION ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DUES AND FEES . . . . . . .,. .,. . . . . . . . . . . . . . . . . . . . INSURANCE ..... .. . . . . . . . . . . . . . .. ....... . . . . . . LEGAL AND ACCOUNTING ........ . . . . .. ............ . . . . . . . . MEALS AND ENTERTAINMENT .... ............ ............. OFFICE EXPENSE / POSTAGE .... .. ...... ....... PAYROLL PROCESSING .... ........ . . . . . . . . . . .. .. PAYROLL TAXES .... '" ..... .,. ...... ........ ., ......... PRINTING EXPENSE. . . . . . . . . . . . . . . . . . . . . . .. .... ....... SUBCONTRACTORS ............... ....................... .... TELEPHONE ........ . . . . . . . . . . . . . . . . '" . . . . . . . . . . . . TRAVEL AND LODGING. . . .. ............ ......... . . . . . . . . . Total $ Statement 3 Form 11205, Schedule A, Line 5 Other Costs FREIGHT ....... . . . . ., ................. .............. $ MATERIALS AND SUPPLIES .... . . . . . . . . . . . . . . . .. . . .. ....... . Total $ Page 1 23-2451345 U4:0U pm 12{155 38,219 7,949 313 980 59,616 2,917 6,818 293 1,688 4,542 525 439 9,416 6,975 3,289 3,596 492 8,017 682 7,836 3,902 16,412 77,839 3,639 316 3,955 r-f-~ . [ , . , '1998 . Federal Statements , Page 2 Client AIRE01 AIRE DESIGNERS, INC. 23-2451345 107/14/9\1 04:00 pm Statement 4 Form 1120S, Schedule L, Line 6 other Current Assets Beginning Ending ------------ ------------ DUE FROM FILTER CUSTOMERS ....................... . $ 0 $ 56,088 PREPAID CORP TAXES ............................ . 133 183 UNAMORTIZED LEASE COSTS ................... 0..... 3,364 2,557 Total $ 3,497 $ 58,828 Statement 5 Form 11208, Schedule L, Line 18 other Current liabilities Beginning Ending ------------ ------------ DUE TO FILTER VENDORS ...............0.......... . $ 0 $ 8,745 Total $ 0 $ 8,745 . Statement 6 Form 1120S, Schedule M-1, Line 2 Income On Schedule K Not On Books AUTO LEASE INCOME INCLUSION ....................................... .. $ 313 Total $ 313 Statement 7 Form 1120S, Schedule M-2, Line 3 Other Additions Interest Income ...................................................................... .. $ 1,460 Total $ 1,460 . Statement 8 Form 11205, Schedule M-2, Line 5 Other Reductions Disallowed Meals and Entertainment (50%) ................................. . $ 3,289 Section 1231 Loss ................................... .-............... 0.................. 11,603 Section 179 Expense ............................................................ .. 6,060 Total $ 20,952 l~~ ~~ ~ ~ COMMONWEALTH OF PENNSYLVANIA BUp'cAU OF INDIVIDUAL TAXES DEPARTMENT OF REVENUE INHERITANCE TAX DIVISION DEPT. 280601 NOTICE OF INHERITANCE TAX HARRISBURG, PA 17128-0601 APPRAISEMENT, ALLOWANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX REV-1547 E% ~FP (01-027 DATE 09-23-2002 ESTATE OF BONANDUCCI ROBERT DATE OF DEATH 09-22-2001 FILE NUMBER 21 02-0585 '( _ _ ; ~ COUNTY CUMBERLAND VIRGINIA BONANDUCCI ACN 101 2219 BRIGADE RD Amount Remitted ENOLA PA 17025 MAKE CHECK PAYABLE AND REMIT PAYMENT T0: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 CUT ALONG THIS LINE - RETAIN LOWER PORTION FOR YOUR RECORDS ~ _____________________ ------------------------------ -------------------------- ---------------------------------- REV-1547 EX AFP (01-02) NOTICE OF INHERITANCE TAX APPRAISEMENT, ALLOWANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX ESTATE OF BONANDUCCI ROBERT FILE N0. 21 02-0585 ACN 101 DATE 09-23-2002 TAX RETURN WAS: ( ) ACCEPTED AS FILED ( X) CHANGED SEE ATTACHED NOTICE RESERVATION CONCERNING FUTURE INTEREST - SEE REVERSE APPRAISED VALUE OF RETURN BASED ON: ORIGINAL RETURN (1) .00 NOTE: To insure proper 1. Real Estate (Schedule A) 00 credit to your account, 2. Stocks and Bonds (Schedule B) (2) . 65 36 0 139 subeit the upper portion 3. Closely Held Stock/Partnership Interest (Schedule C) (3) . , 00 of this fora with your 4. Mortgages/Notes Receivable (Schedule D) (4) . 00 tax payeent. 5 Cash/Bank Deposits/Misc. Personal Property (Schedule E) (5) . . 6 Jointly Owned Property (Schedule F) (6) 314,109.00 . (7) 268, 573.50 7. Transfers (Schedule G) 043.15 722 8. Total Assets (8) , APPROVED DEDUCTIONS AND EXEMPTIONS: 1,782.00 9 Funeral Expenses/Adm. Costs/Misc. Expenses (Schedule H) (9) . 10. Debts/Mortgage Liabilities/Liens (Schedule I) (10) 72.209.00 00 991 3 11. Total Deductions (11) . . 648, 052.15 12. Net Value of Tax Return (12) .00 /Governeental Bequests; Non-elected 9113 Trusts (Schedule J) (13) bl it 13. e a Char (14) 648,052.15 14. Net Value of Estate Subject to Tax NOTE: If an assessment was issued previously, lines 14, l of ALL ret t t 15 andior 16, 17, urns assessed to da 18 and 19 will te. a o reflect figures that include the ASSESSMENT OF TAX: 648,052.15 X 00 _ - .00 15. Amount of Line 14 at Spousal rate (15) 045 - 00 . 00 16. Amount of Line 14 taxable at Lineal/Class A rate (16) _ . X 12 00 .00 17. Amount of Line 14 at Sibling rate (17) X _ . 15 00 .00 18. Amount of Line 14 taxable at Collateral/Class B rate (18) = . X 00 (19)= . 19. Principal Tax Due DA PAID (-) AMOUNT PAID TOTAL TAX CREDIT .00 BALANCE OF TAX DUE .00 INTEREST AND PEN. .00 TOTAL DUE .00 * IF PAID AFTER DATE INDICATED, SEE REVERSE ( IF TOTAL DUE IS LESS THAN 51, NO PAYMENT IS REQUIRED. FOR CALCULATION OF ADDITIONAL INTEREST. pFREFUND.DSEEIREVERSECSIDEAOFATHISEFORM FOR)INSTRUCTIONS,DUE REV-14; : EX (8-88) COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES DEPT. 280601 HARRISBURG. PA 17128-0601 REVIEWED BY Robert Bonanducci John M. Ross NUMBER 21 02-0585 101 ITEM EXPLANATION OF CHANGES SCHEDULE NO. C Additional Item - 520 shares of Aire Designers, Inc., $139,360.65. INHERITANCE TAX EXPLANATION OF CHANGES Row Page 1