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Home My WebLink About01-0489 .... PETITION FOR PROBATE and GRANT OF LETTERS ~\- D\- 4~1 Estate of ZORA G. BOWMAN also known as No. To: Register of Wills for the Deceased. County of CUMBERLAND in the Social Security No. 187 -16 - 6525 Commonwealth of Pennsylvania The petition of the undersigned respectfully represents that: Your petitioner(s), who is/are 18 years of age or older an the execut ors in the last will of the above decedent, dated J u I y 1, and codicil(s) dated December 14. 2000 named , 19~ (state relevant circumstances, e.g. renunciation, death of ex.ecutor, etc.) Decendent was domiciled at death in Cumberland County, Pennsylvania, with h iilT last family or principal residence at 7 h ~r~~nc::pr; n~ Dr; vp Silver Sprinq Township (list street, number and muncipality) Decendent, then 78 years of age, died May 1 , at 76 Greensorinq Drive. Mechanicsburg. PA Except as follows, decedent did not marry, was not divorced and did not have a child born or adopted after execution of the will offered for probate; was not the victim of a killing and was never adjudicated incompetent~ Decendent at death owned property with estimated values as follows: (If domiciled in Pa.) All personal property (If not domiciled in Pa.) Personal property in Pennsylvania (If not domiciled in Pa.) Personal property in County Value of real estate in Pennsylvania situated as follows: 2001 750,000.00 $ $ $ $ 15B,OOO.OO 76 Greensprlng Drlve, Sliver Sprlng Townshlp Cumberland County, PA WHEREFORE, petitioner(s) respectfully request(s) the probate of the last will and codicil(s) pre"ented herewith and the grant of letters 1'es t Amen t A ry (testamentary; administration c.La.; administration d.b.n.c.t.a.) theron. - ~ G.J g (' ~ -:I- .- ." VI ..... G.J~ ~~ C -:10 ;:~ 3~ G.J '- :io C; c co Vi app Road PA 17365 ~^1;1:1 8~Vl ~ even G. Bowman 2999 Dickinson Ave. Camn Hill. PA 17011 OATH OF PERSONAL REPRESENTATIVE COMMONWEALTH OF PENNSYLVANIA I s~ COUNTY OF CUMBERLAND J ~ \lo- ;l'3l- The petitioner(s) above-named swear(~) or affirm(s) that the statements in the foregoing petition are true and correct to the best of the knowledge and belief of petitioner(s) and that as personal represen- tative(s) of the above decedent petitioner(s) will well and truly administer the estate according to law. If'w~~ . M.~~ -i . ~':M TG(/~IV G 'B() ~ ,>V},,4,v affirmed and 17TH tI:l QQ' :::s ~ r: ~ ~ - ..... N 21 - 01 - 489 o. Estate of ZORA G. BOWMAN , Deceased DECREE OF PROBATE AND GRANT OF LETTERS AND NOW MA Y 18 2001 , in consideration of the petition on the reverse side hereof, satisfactory proof having been presented before me, IT IS DECREED that the instrument(s) dated July 1, 1998 and December 14, 2000 described therein be admitted to probate and filed of record as the last will and Codicil of Zora G. Bowman and Letters Testamentary are hereby granted to Steven G. Bowman and Patricia B. Dapp ~,~o~s~~. MARY CLEWIS . [J J Richard W. Stewart (18039) Johnson, Duffie, Stewart & Weidner A TIORNEY (Sup. Ct. J.D. No.) 301 Market st., P. O. Box 109 Lemoyne. PA ]7041-0109 ADDRESS FEES Probate, Letters, Etc. ......... Short Certificates( 3) . . . . . . . . . . Renunciation ................ X-pages Codicil JCP Filed $ 511) . 00 $ 9.00 $ 18.UU $ lO.SO TOTAL_$ ~.OO . . . .M~ ~ . !.~ '. . ?- P.q ~ . . . . . . . . . . ~ : ? : .s. q (717) 761-4540 PHONE Mailed letters to attorney on 1)-18-01 ! O',SO'i Rn' '''Rh This is (0 cerrifv that the information here given is correctly copied from an originalce,rtific~te of death du!:: flied with me as Local Registr,tr. The original certificate will he forwarded to the State Vital Records Otfice tor pernLHlcm hlmg, WARNING: It is illegal to duplicate this copy by photostat or photograph. -1/1f/IIIU''-'J;-& "f/''''-tU OF "" /.i(till~ ~\.Hl PEl~--~- I.l~~'~--<' ',f,,-:.- '\\ ~ / ~.)A"- ,t~/ · .9<~" \~\ ~~! - -~, \~~ ~ c-';, _ if. . .: .h. ~ t~.,/ *1 \<::2\ . <~ " /:~/ ~~~'< /~\\\ - ~........ "./'-..r t\ ----!.~rM~EN.-l.-~\ ~;III'! ~,;,;" t N \ \) ",;,~ ~ ih.~ /~ ~~ Loc;~l Registrar (/ Fee for this certificate. $2.00 P 7297867 MAY 0 5 2001 No. Date ; 43 Rev. 2187 COMMONWEALTH OF PENNSYLVANIA · OEPARTMENT OF HEALTH · VITAL RECORDS CERTIFICATE OF DEATH 7 8 VIS SEX z. F e.male. STATE FilE NU"8ER SOCIAL SECURfN NUMBER NAME OF DECEDENT If.rSf MK1<lIe, l....' /'l 1. .20 ro... {J, AGE (lil$l !lotlt>oaYI UNDER 1 ....EAR IoIonlIIa Oar- 3. 187 16 - 6525 Ol\TE OF DEATH .Monrh. Da~. '_I 4. ~/..-O / S. COUNTY OF OEAI'H BIRTHPlACE lCoty....cI ~E OF DEnH leNd or>ly (}t>8 n >H .nSlrucL0<>9 on ome, SOlIe) Slale Of fCfe.gn COUnDV) HOSPllAl Ha){)li-6buJI. 9 , P A Inpa...n.O ER/OuIpatI.nl [J OOA 0 7. ... FACIlIN NAME (It nol,n!o1'lIJIoon. give Sf'eeI and numllefl ::",,)0 RACE - Am_lnCliIIn. 8Iack. WhiI.. eli, - (Speedy) J III. CumbeJl.tand DECEDENT'S USUAl OCCUPlQ1()H (~-=:~:o %'" .:::~::r J e.t Vac. n.. Exec.utive 11~ oa:EOENT'S MAlUNG ADOAESS (SIt.... CtlyfTown. ~.l"op Codel 76 G.1le.e.V/..6p.1l.tng VJl..tve. I" Mec.hanic.-6buJI. g, P A 17055 fRHEA'S NAME (First MI(ldIe, Lalli) 11. HOwaJld S. Goodman INfOflMANT'S NAME (T ypelPrInl\ M.1l-6. PatJL..i.c..ta Va METHOD OF 0ISP0SlT1OH o cr..........Ja' "'-'-IromSla'.o (Speclly to. white. SURVIVING SPOUSE In ...,.. gnoe InllIOen namel Ml\RITAl STATUS - "'-'ed He_Married. ~. 0N0<c.d (Spectly) Widowed p.1l.(.nq .... DECEDENT'S ACTUAL RESlOENCE (See onsIruCbOna on__l 17.. Slale 1710. CumbeJlland Did ~ live... -.sIlip ? cilyllton 17365 2te. 23a. IME OF DEATH DATE PRONOUNCED OEAD (Monll1, Day. 'tUr) S-- /- 0 / 2310. Dc. WIIS CASE REFERRED TO MEOlC~l~MINERlCORONER? YeaN r 0 NoD H. I Appro........ PART II: 0IMr sigl>illcant condIIione concribuling to death, but : ~ ~ _1WSUIlinQ in lhe unclarlying _ given ill f>>\RT I. I I I M. 25. 27. MIlT I: Enter.he cliMuas. inluries or cornpIIcallon. which ca_I"" dealh Do nol.nler."" mode ot dying, such as cardiac or r.sp"alory arr.s.. shock or ""art failur. U.w only ..... causa on NdlIine 24. ~"OO IHb-rIt\.'7/1'1ic- S'r'l1ft'-~ Ct::.-u.. CJtl..c,1'\/(J,y-,A iJP- 7/lCL(//l/ DUE 10 (OR lIS A CONSEOUENCE Of): I: DUE TO (OR AS 1\ CONSEOUENCE Of): DUE TO (OR lIS A CONSEOUE NeE Of): WERE AUTOPSY FINDINGS MANNER 0#' DlCATH OnE OF INJUI'lY _u.&l..E PRIOR 10 K' (Man"', Day. Year) COMPt.E'T1OH OF CAUSE 0 OF OEAI'H? NatIM''' HomICide Aa:odenI 0 P.neling ,-.,.lIon 0 ... 0 NoM 'feeD Nog Suicide 0 Could not be del.nn",ed 0 TlUE OF INJUR.... INJUR.... AT WORK? DESCRIBE HOW INJUR.... OCCURAED. 'fee 0 NoD 2Ia. 21b. CERTII'IER (Check oniy onel 'CERTM'YING PH....SICIAN (Phy"","" cerlolyong cauw ~ <lea'" ""'en an","", ""v"",.an has p<onounced dealh ana com~leclllem 23) To !he 1leaI., "', I&nowlrtdge. ....'" OC1:u............... c.uM(.) and manner.. ."'t.... . , . . . 29. '..EOlCAt. ex.....'NERJCOAOHER Oft the ba.la ole.."'ln.tl4n .nd/Of investigation, In my opinion. de.th occurred ."he Ume. d.le, and place, and due.o the cause(.'.nd _....s.................,.,.,............. ...,..... _...........,.....................................,........ 31a. -\ ~N~N~ 33 ~ I ~ I ~ "II D3 h0 lICENSE NUMBER (.r" riI :JfC. .fVI7:J 010'7 () 'I B 31d. NAME AND AOORESS OF PERSON WHO COM. PLETEDffiOF DEATH (lIem 271 Type Of Print A.7 ti 0 MA S 0 (l..~ S I f'Y\O '5'7'/'2... TILIYV L-tr I{.grrD o 32. C/'tfYI P 1-/ n_L- Prt r? 0 I / DATE FILED (Month Day, Yea" 34.~ ~j).~O/ ~ II .~ .PRONOUNCING AND CERTlF....1NG ,,"YSICIAH (Physooan bofh ""'(>0'''''''''9 oeali> and cet101y'''9'O cause of dealtll To !he ~t ot "'y knowledQ.. cia.", occurrad .t.... time. CI.I.. and plac...nd du.lo 11M uuM(a) and m.nnar aa alat... 009014-00002/6.24.98/RWS/DCP/111978 1JJast mill aub westameut OF ZORA G. BOWMAN I, Zora G. Bowman, of the Township of Silver Spring, County of Cumberland, and Commonwealth of Pennsylvania, declare this to be my last Will and revoke any Will previously made by me. ITEM I. I bequeath all of my shares of stock in Jet Vac Service and Equipment, Inc., to my son, STEVEN G. BOWMAN, if he survives me. Should my son, STEVEN G. BOWMAN, fail to survive me, I bequeath such shares of stock to his issue, per stirpes, who survive me. ITEM ll. I bequeath one-half of my partnership interest in BOCa Associates to my daughter, PATRICIA B. DAPP, if she survives me. If my daughter, PATRICIA B. DAPP, fails to survive me, I bequeath one-half (1/2) of my partnership interest in BOCa Associates to the issue, per stirpes, of my daughter, PATRICIA B. DAPP, who survive me. ITEM ID. I bequeath one-half (112) of my partnership interest in BOCa Associates to my son, STEVEN G. BOWMAN, if he survives me. If my son, STEVEN G. BOWMAN, fails to survive me, I bequeath one-half (1/2) of my said partnership interest to the issue of my son, STEVEN G. BOWMAN, per stirpes, who survive me. ITEM IV. I bequeath the sum of $2,000.00 to each of the following named grandchildren who survive me: Henrj K. Bowman, III Emily Bowman Markel Aaron B. Dapp Andrew Bowman Adam Bowman Wayne Kennedy Darlene Miller ITEM V. I bequeath such of my tangible personal property as is set forth in a separate unsigned memorandum, which I shall place with my Will, to the persons therein designated. 009014-00002l6.24.98/RWS/DCP/111978 ITEM VI. I devise and bequeath the residue of my estate of every nature and wherever situate in equal share to such of my children, STEVEN G. BOWMAN, AND PATRICIA B. DAPP, who survive me. Should either of my above named children predecease me, I devise the share of such child to his or her issue, per stirpes, who survive me, and should either such child of mine leave no such issue who survive me I devise and bequeath the share of such child to my other named child who survives me or his or her issue. ITEM VII. I appoint DAUPHIN DEPOSIT BANK AND TRUST COMPANY, of Harrisburg, Dauphin County, Pennsylvania, guardian of any property which passes either under this will or otherwise, to a minor and with respect to which I am authorized to appoint a guardian and have not otherwise specifically done so, provided that this appointment of a guardian shall not supersede the right of any fiduciary in its discretion to distribute a share where possible to the minor or to another for the minor's benefit. Such guardian shall have the power to use principal as well as income from time to time for the minor's support and education (including college education, both graduate and undergraduate) without regard to his or her parent's ability to provide for such support and education, or to make payment for these purposes, without further responsibility, to the minor or to the minor's parent or to any person taking care of the minor. ITEM VIII. I direct that all taxes that may be assessed in consequence of my death, of whatever nature and by whatever jurisdiction imposed, shall be paid from my residuary estate as a part of the expense of the administration of my estate. ITEM IX. I appoint my children, STEVEN G. BOWMAN and PATRICIA B. DAPP, Executors of this my last Will. ITEM X. I direct that my Executors, Trustee and Guardian shall not be required to give bond for the faithful performance of their duties in any jurisdiction. IN WITNESS WHEREOF, I have hereunto set my hand this ..Ju I ( ,1998. 15r- day of J!7 /,:/ / ~ ..,::t5 t!-vV?l--LJ'VL, ~ G. BOWMAN (SEAL) 009014-00002/6.24.98/RWS/DCP/111978 SIGNED, SEALED, PUBLISHED AND DECLARED, by Zora G. Bowman, the Testatrix above named, as and for her Last Will and Testament and in the presence of us, who, at her request, in her presence and in the presence of each other, have subscribed our names as witnesses. ~J J11I ~ Witn/7. ~~a~ Witness ~~ Address /~_'L(, Address ' ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA COUNTY OF C~ :88: I, Zora G. Bowman, Testatrix, whose name is signed to the foregoing instrument, having been duly qualified according to law, do hereby acknowledge that I signed and executed the instrument as my Last Will and Testament; that I signed it willingly; and that I signed it as my free and voluntary act for the purposes therein expressed. /) ~(7 /J r,;:7\ .44 /Jj, A5c,L,(.<?f,l {t~ V Zora G. Bowman Sworn to or affirmed and acknowledged before me, by Zora G. Bowman, the Testatrix, this /.s;y day of '- l-U.~ ' 1998. ( ~91~G~J , Notary Public My commission expires: (SEAL) NOTARIAL SEAL NINA JUNE DAVIS, Notary Public Lemoyne Boro. Cumberland County M Commission Ex ires Oct. 31,1998 Member Pennsylvanl a Association of Notaries 009014-00002/6.24. 98/RWS/DCP /111978 AFFIDA VIT COMMONWEALTH OF PENNSYLVANIA :SS: COUNTY OF (/~~ We, '(\1(~~rJ. W 51'eW(.lYOV and f~(t\"\c-I..-"" A 't2ek~,.- , the witnesses whose names are signed to the foregoing instrument, being duly qualified according to law, do depose and say that we were present and saw the Testatrix sign and execute the foregoing instrument as her Last Will and Testament; that she signed willingly and that she executed it as her free and voluntary act for the purposes therein expressed; that each of us in the hearing and sight of the Testatrix signed the Will as witnesses; and that to the best of our knowledge, the Testatrix was at that time at least 18 years of age, of sound raind and under no constraint or undue influence. ~$~ ~~~{) ~eA/ .,J;z,swom to or afiirmed and subscribed to before me bY~! JCJ\I if, (j .ewe; d and k!r(f'ifil. {! ?~hpr . witnesses, this /sY dayof ~ 1998. 1b4~TJ~ Notary PublIc My commission expires: (SEAL) NOTARIAL SEAL NINA JUNE DAVIS, Notary Public lemoyne Bore. Cumberland County Commission Ex ires Oct. 31 1998 Member PennaylvllfIi a A.soclatlon of Notaries 009014-00002/12.13.00/RWS/DCP/141562.1 OLnbitil tn mast mill an~ Wtstamtnt OF ZORA G. BOWMAN I, Zora G. Bowman, of the Township of Silver Spring, County of Cumberland, Commonwealth of Pennsylvania, declare this to be the sole Codicil to my Last Will dated ~')\ t ' 1998. ITEM I. I hereby revoke ITEM II AND ITEM III of my Will and in lieu thereof provided as follows: ITEM II. I bequeath a 46% partnership interest in BOCa Associates to my daughter, PATRICIA B. DAPP if she survives me. If my daughter, PATRICIA B. DAPP, fails to survive me, I bequeath a 46% partnership interest in BOCa Associates to the issue, per stirpes, of my daughter, PATRICIA B. DAPP, who survive me. ITEM III. I bequeath a 15% percent partnership interest in BOCa Associates to my son, STEVEN G. BOWMAN, ifhe survives me. Ifmy son, STEVEN G. BOWMAN, fails to survive me, I bequeath a 15% partnership interest in BOCa Associates to the issue, per stirpes, of my son, STEVEN G. BOWMAN, who survive me. ITEM II. ~l.d\1 I I all other respects, I hereby ratify, confirm and republish my Last Will dated , 1998, together with the sole Codicil as it were my Last Will. 009014-00002/12.13.00/RWS/DCP/141562.1 IN WITNESS WHEREOF, I have hereunto set my hand this t'-'ff ~ day of December , 2000. '1 MA xJ VJ~~ Z<PRA G. BOWMAN \ (\ ,,-J (SEAL) 009014-00002/12.13.00/RWS/DCP/141562.1 SIGNED, SEALED, PUBLISHED AND DECLARED, by Zora G. Bowman, the Testatrix above named, as and for her Last Will and Testament and in the presence of us, who, at her request, in her presence and in the presence of each other, have subscribed our names as witnesses. -'id /;V P Witness L~~ Address yJ,- -I11 C'v\/~ "1 ~ lZJ e- Witness 1 ~5 0 1-ltFftYJ;:\"I e- ME- j:/-~tf 81{. }J.y' lt11-/73 Address ACKNOWLEDGMENT COMMONWEAL TH OF PENN8YL VANIA COUNTY OF &mbe.2lIlI-iJ :88: I, Zora G. Bowman, Testatrix, whose name is signed to the foregoing instrument, having been duly qualified according to law, do hereby acknowledge that I signed and executed the instrument as the Codicil to my Last Will and Testament; that I signed it willingly; and that I signed it as my free and voluntary act for the purposes therein expressed. j ~ t-d. 13~ / . Zor: G. Bowman C.- Sworn to or affirmed and acknowledged before me, by Zora G. Bowman, the Testatrix, this day of December, 2000. /{)jz{~ f ~ /f~., / otary ubhc My commission expires: (SEAL) Notarial Seal Shirley Keys, Notary Public Hampden Twp., Cumberland County My Commission Expires June 17, 2004 Member, PennsylvantaASsoclatlon ot Notaries 009014-00002/12.13.00/RWS/DCP/141562.1 AFFIDA VIT COMMONWEALTH OF PENN8YL VANIA :88: COUNTY OF We, ~ l ~ ~ ~ ,J.... tv 5i e <.Jl. '" v and M4~ lG\ 8" v --<- , the witnesses whose names are signed to the foregoing instrument, being duly qualified according to law, do depose and say that we were present and saw the Testatrix sign and execute the foregoing instrument as her Last Will and Testament; that she signed willingly and that she executed it as her free and voluntary act for the purposes therein expressed; that each of us in the hearing and sight of the Testatrix signed the Will as witnesses; and that to the best of our knowledge, the Testatrix was at that time at least] 8 years of age, of sound mind and under no constraint or undue influence. -;?7J /j,./~L fVltVv'~\ ~DQ.. Sworn to or affirmed and subscribed to before me by ~ \(;..l,a...~ W $ie wc.c,... I-- and Mo....O \ct~o""'- , witnesses, this day of December, 2000. iJj;~<t!J ~~ " 'Nota Public My commission expires: (SEAL) Notarial Seal Shirley Keys, Notary Public Hampden Twp., Cumberland County My Commission Expires June 17, 2004 Member, ~ennsylvanta Association at Notanes i ~. "-- CERTIFICATION OF NOTICE UNDER RULE 5.6(a) Name of Decedent: ZORA G. BOWMAN Date of Death: May 1, 2001 Will No.: 2001-00489 Admin. No.: To the Register: I certify that notice of beneficial interest required by Rule 5.6(a) of the Orphans' Court ules was served on or mailed to the following beneficiaries of the above-captioned estate on \ l " "~I / ,'(,,- '. I / I Name Address 2227 N. 3m St., Harrisburg, PA 17110 310 Carla Dr., Blawnox, PA 15238 207 Pine Woods Rd., Wellsville, PA 17365 2999 Dickinson Ave., Camp Hill, PA 17011 2999 Dickinson Ave., Camp Hill, PA 17011 Henry K. Bowman, III Emily Bowman Markel Aaron B. Dapp Andrew Bowman Adam Bowman Please see attached. Notice has now been given to all persons entitled thereto under Rule 5.6(a) except None. Date: 1j:l1fti ~J //Y~ Signature Name Richard W. Stewart, Esq. Johnson, Duffie, Stewart & Weidner Address 301 Market St. P. O. Box 109 Lemoyne, PA 17043-0109 Telephone (717) 761-4540 Capacity: Personal Representative X Counsel for personal representative ~. --. ESTATE OF: ZORA G. BOWMAN 2001-00489 Beneficiaries - Continued Name Wayne Kennedy Bowman Darlene (Miller) George Patricia B. Dapp Steven G. Bowman Address 16124 Bayham Drive, Clinton, MI 48038 223 S. Dewey St., Owosso, MI 48867 207 Pine Woods Rd., Wellsville, PA 17365 2999 Dickinson Ave., Camp Hill, PA 17011 Inventorj of the real and personal estate of ZORA G. BOWMAN deceased 1. Real Estate - No. 76 Greenspring Drive, Township of Silver Spring, Cumberland County, PA. (Deed Book X, Volume 35) Sale Price 2. Household Goods - appraised value TOTAL 128,000 00 2,600 00 6,100 00 54,406 01 533 49 7,634 66 16,117 16 10,792 87 3,258 33 9,920 40 31,409 35 23,132 00 138,301 59 4,732 54 76,998 11 1,149 63 300 00 357.6771 00 177,291 00 1,050,35 14 3. Automobile - 1996 Buick - sale price 4. PNC Bank - Interest Checking Account No. 51-4000-6204 . Date of death balance, plus accrued interest 5. PNC Bank - Money Market Account No. 50-0204-8668 Date of death balance 6. PNC Bank - Certificate of Deposit No. 31-400170417 Date of death balance, plus accrued interest 7. PNC Bank - Certificate of Deposit No. 31-900170173 Date of death balance, plus accrued interest 8. PNC Bank - Certificate of Deposit No. 31-400175620 Date of death balance, plus accrued interest 9. PNCBank - Certificate of Deposit No. 31-100177012 Date of death balance, plus accrued interest 10, Mid Penn Bank - Now Account No. 9005455 Date of death balance, plus accrued interest 11. Fulton Bank - Certificate of Deposit No. 025-0112727 Date of death balance, plus accrued interest 12. First Union - Certificate of Deposit No. 247412051275356 Date of death balance, plus accrued interest 13. American Express Investment Account No. 0816 5153 1 001 Date of death value 14. Prudential Insurance - Policy No. M03 829 9000 Beneficiary: Estate 15. Loan - Jet Vac Service, Inc. to Zora G. Bowman Date of death balance, plus accrued interest 16. Adams Electric Cooperative - Date of death value 17. United States Treasury - tax rebate 18. 8,615 Shares - Jet Vac Service, Inc. - closely held PA Corp. 19. 61% interest in Boca Associates - PA Partnership COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND } ss: Patricia B. Dapp and Steven G. Bowman being duly according to law, deposes and says that they Qre Exec11torx of the Estate of Zora G. Bowman late of __.~jlver~prirl~LT.Q~ship _._ , Cumberland County, Pa., deceased and that the within is an inventory made by Patricia B. Dapp and stev~n G. Bowman , the said Executors of the entire estate of said decedent, consisting of all the personal prop~rty and real. estate, except real estate outside the Commonwealth of Pennsylvania, and that the figures opposite each item of the Inventory represent it's fair value as of the date of decedent's death. t land subscribed before me, cti:3(~ AJJ c~tW? 2002 xecutor . . " Patricia B. Dapp Steven G. Bowman 207 Pine Woods Rd. 2999 Dickinson Ave. swnrn Sworn to ;C/ /~/t-tti tt/t.~~ / - /~ (j otan8. e . Nina June Davis, Notary Publrc Lemoyne Boro.~uf"!1berland County My Commission expires Oct. 31,2002 Member. Pennsvlvenla Association at Notaries Wellsville, PA 17365 Camp Hill, PA 17011 Addr.ss Date of Death 1st May 2001 Day Month. v.., INSTRUCTIONS I. An inventory must be filed within three months after appointment of personal representative. 2. A supplement inventory must be filed within thirty days of discovery or additional assets. 3. Additional sheets may be attached as to personalty or realty 4. See Article IV, Fiduci~jes Act of 1949. If) ('1", C'- ,j I CD i...l.J u- -, ~:.:~ ..1 ,1.) P ,- c: l~j,~ :; ''..r' ".....I '-"'" ~ M :a ~ 00 0 ~ r--- -0 ,.......j >- I- W CD ~ E-t WI >- 0::: I- 10 0'\ UJ -( ~ ~ Q.. I- u co 0 -~ ~ G .. 0 en 00 >- ill ..q< w UJ 0 0\ 0 J: 0::: c% IQ kl CD C I I- 0.. u.. Q. c: :>, ,.......j Z I- ...J 10 .. ~ ~ 0 U. -J -( 0 ! Q. t~ I W 0 < w H >- ,.......j > Z ~ ~ ~ -(~ H N - Z 0 c 0 rl :J OJ ." 0 en Z -..., 0 +J 0'\ 0::: Cf) () Cf) 0 Z w -( . ..,. ,.......j 0.. <.9 "1:1 .. c 3: S ~! 10 - L: 'E 0 ~ NI ..Q "1:1 ..w ~ . CD E 0 - CD 0 I 10 :::a 0 0 ! -J (J u: ~ -..., . ~ 0.. COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES DEPT. 280601 HARRISBURG. PA 17128-0601 REV-1162 EX(11-96) RECEIVED FROM: PENNSYLVANIA INHERIT ANCE AND ESTATE TAX OFFICIAL RECEIPT STEWART RICHARD W 3RD & MARKET STREETS P. O. BOX 109 LEMOYNE, PA 17043 n_nh_ fold ESTATE INFORMATION: SSN: 187-16-6525 FILE NUMBER: 2101-0489 DECEDENT NAME: BOWMAN ZORA G DATE OF PAYMENT: 02/04/2002 POSTMARK DATE: 02/02/2002 COUNTY: CUMBERLAND DATE OF DEATH: 05/01/2001 NO. CD 000825 ACN ASSESSMENT CONTROL NUMBER AMOUNT I 101 I $21,018.69 I I I I I I I I I TOTAL AMOUNT PAID: $21,018.69 REMARKS: RICHARD W STEWART ESQUIRE CHECK# 1023 SEAL INITIALS: AC RECEIVED BY: REGISTER OF WILLS MARY C. LEWIS REGISTER OF WILLS COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES DEPT. 280601 HARRISBURG. PA 1 71 28~060 1 REV~1162 EX{ll~96) RECEIVED FROM: PENNSYLVANIA INHERITANCE AND ESTATE TAX OFFICIAL RECEIPT STEWART RICHARD W 3RD & MARKET STREETS P. O. BOX 109 LEMOYNE, PA 17043 _n__n_ fold ESTATE INFORMATION: SSN: 187-16-6525 FILE NUMBER: 2101-0489 DECEDENT NAME: BOWMAN ZORA G DA TE OF PAYMENT: 04/15/2002 POSTMARK DATE: 04/12/2002 COUNTY: CUMBERLAND DATE OF DEATH: 05/01/2001 NO. CD 001065 ACN ASSESSMENT CONTROL NUMBER AMOUNT 101 I $3.45 I I I I I I I I TOTAL AMOUNT PAID: REMARKS: RICHARD W STEWART ESQUIRE CHECK# 6789 SEAL INITIALS: JA RECEIVED BY: REGISTER OF WILLS $3.45 MARY C. LEWIS REGISTER OF WILLS COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES DEPT. 280601 HARRISBURG, PA 17128-0601 REV-1162 EX(11-96) RECEIVED FROM: PENNSYLVANIA INHERITANCE AND ESTATE TAX OFFICIAL RECEIPT STEWART RICHARD W 3RD & MARKET STREETS P. O. BOX 109 LEMOYNE, PA 17043 _u__u_ fold ESTATE INFORMATION: SSN: 187-16-6525 FILE NUMBER: 21-2001- 0489 DECEDENT NAME: BOWMAN ZORA G DATE OF PAYMENT: 07/30/2001 POSTMARK DATE: 07/27/2001 COUNTY: CUMBERLAND DATE OF DEATH: 05/01/2001 NO. CD 000096 ACN ASSESSMENT CONTROL NUMBER AMOUNT 101 I $20,000.00 I I I I I I I I TOTAL AMOUNT PAID: REMARKS: RICHARD W STEWART ESQUIRE CHECK# 23 SEAL INITIALS: AC RECEIVED BY: REGISTER OF WILLS $20,000.00 MARY C. LEWIS REGISTER OF WILLS c l.O -- o-J'd / - P .~ BUREAU OF INDIVIDUAL TAXES INHERITANCE TAX DIVISION DEPT. 280601 HARRISBURG, PA 17128-0601 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE INHERITANCE TAX STATEMENT OF ACCOUNT *' REV-l&07 EX AFP lOl-02} RICHARD W STEWART JOHNSON ETAl PO BOX 109 LEMOYNE 'C:.~ -;'1 _) i f; 1 .,<) DATE ESTATE OF DATE OF DEATH FILE NUMBER COUNTY ACN 05-28-2002 BOWMAN 05-01-2001 21 01-0489 CUMBERLAND 101 ZORA G Allount Rellitted P~~l17043 MAKE CHECK PAYABLE AND REMIT PAYMENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 NOTE: To insure proper credit to your account, subllit the upper portion of this forll with your tax payment. CUT ALONG THIS LINE .. RETAIN LOWER PORTION FOR YOUR RECORDS ~ REv=i6cfj-Ex-AFP--foi-:021-------...--iNHERITANci--fAX--s;-jriit'fNY-ifF"-AC-COl;N"i--.-..--------------------- ESTATE OF BOWMAN ZORA G FILE NO. 21 01-0489 ACN 101 DATE 05-28-2002 THIS STATEHENT IS PROVIDED TO ADVISE OF THE CURRENT STATUS OF THE STATED ACN IN THE NAHED ESTATE. SHOWN BELOW IS A SUHHARY OF THE PRINCIPAL TAX DUE, APPLICATION OF ALL PAYHENTS, THE CURRENT BALANCE, AND, IF APPLICABLE, A PROJECTED INTEREST FIGURE. DATE OF LAST ASSESSMENT OR RECORD ADJUSTMENT: 04-08-2002 PR I NC I PAL T AX DUE: ........................................................................................................................................................................................................................... 42,071.32 PAYMENTS (TAX CREDITS): PAYMENT RECEIPT DISCOUNT (+) AMOUNT PAID DATE NUMBER INTEREST/PEN PAID (-) 07-27-2001 CDOOO096 1,052.63 20,000.00 02-02-2002 CDOO0825 .00 21,018.69 04-12-2002 CDOOI065 3.45- 3.45 TOTAL TAX CREDIT 42,071.32 BALANCE OF TAX DUE .00 INTEREST AND PEN. .00 TOTAL DUE .00 IF PAID AFTER THIS DATE, SEE REVERSE SIDE FOR CALCULATION OF ADDITIONAL INTEREST. ( IF TOTAL DUE IS LESS THAN $1, NO PAYMENT IS REQUIRED. IF TOTAL DUE IS REFLECTED AS A "CREDIT" (CRl, YOU MAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS. l ~ BUREAU OF INDIVIDUAL TAXES INHERITANCE TAX DIVISION DEPT. 280601 HARRISBURG, PA 17128-0601 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE NOTICE OF DETERMINATION AND ASSESSMENT OF PENNSYLVANIA ESTATE TAX BASED ON FEDERAL ESTATE TAX RETURN REV-<;83 EX AFP (01-02) '02 1; II.- r, ~ :rs I~ DATE ESTATE OF DATE OF DEATH FILE NUMBER COUNTY ACN 04-08-2002 BOWMAN 05-01-2001 21 01-0489 CUMBERLAND 201 ZORA G RICHARD W STEWART JOHNSON ETAL PO BOX 109 LEMOYNE 'J (" PA' "\ lb43 Amount Remitted MAKE CHECK PAYABLE AND REMIT PAYMENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 NOTE: To insure proper credit to your account, submit the upper portion of this form with your tax payment. CUT ALONG THIS LINE ~ RETAIN LOWER PORTION FOR YOUR FILES ~ RE:V=483--Ei--AFP--(Oi:-025-----~;-NCificE--OF--nETE-RHiN-ATiCiN-AN-n-A5:SESSt4ENir---------------------------- OF PENNSYLVANIA ESTATE TAX BASED ON FEDERAL ESTATE TAX RETURN ~~ ESTATE OF BOWMAN lORA G FILE NO.21 01-0489 ACN 201 DATE 04-08-2002 ESTATE TAX DETERMINATION 1. 'Credit For State Death Taxes as Verified .00 2. Pennsylvania Inheritance Tax Assessed (Excluding Discount and/or Interest) 41,018.69 3. Inheritance Tax Assessed by Other States or Territories of the United States (Excluding Discount and/or Interest) .00 4. Total Inheritance Tax Assessed 41,018.69 5. Pennsylvania Estate Tax Due .00 TAX CREDITS: PAYMENT RECEIPT DISCOUNT (+) AMOUNT PAID DATE NUMBER INTEREST/PEN PAID (-) TOTAL TAX CREDIT .00 BALANCE OF TAX DUE .00 INTEREST AND PEN. .00 TOTAL DUE .00 *IF PAID AFTER THIS DATE, SEE REVERSE SIDE (IF TOTAL DUE IS LESS THAN $1, NO PAYMENT IS REQUIRED FOR CALCULATION OF ADDITIONAL INTEREST. IF TOTAL DUE IS REFLECTED AS A "CREDIT" (CR), YOU HAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTION~ \. /6- 028/- P BUREAU OF INDIVIDUAL TAXES INHERITANCE TAX DIVISION DEPT. 280601 HARRISBURG, PA 17128-0601 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE NOTICE OF INHERITANCE TAX APPRAISEMENT, ALLOWANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX REV-1547 EX AFP (01-02l '02 DATE ESTATE OF DATE OF DEATH FILE NUMBER :':;, 3COUNTY ACN 04-08-2002 BOWMAN 05-01-2001 21 01-0489 CUMBERLAND 101 ZORA G RICHARD W STEWART JOHNSON ETAL PO BOX 109 LEMOYNE 12 .') 1 "'_..1. "" ", PAl 7 0~4~l.:ti-l58 Amount Remitted MAKE CHECK PAYABLE AND REMIT PAYMENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 CUT ALONG THIS LINE .. RETAIN LOWER PORTION FOR YOUR RECORDS ~ R "E-y = i 54-i-E;if-AFP-coi---o2i--Noi--icE--oF--:ttiHEifiTANcE-i-Ax-APPRA-isEM-ENT-,--ALi-oWAN-CE-Crri----------- -- -- -- DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX ESTATE OF BOWMAN ZORA G FILE NO. 21 01-0489 ACN 101 DATE 04-08-2002 TAX RETURN WAS: (X) ACCEPTED AS FILED ) CHANGED RESERVATION CONCERNING FUTURE INTEREST - SEE REVERSE APPRAISED VALUE OF RETURN BASED ON: ORIGINAL RETURN 1. Real Estate (Schedule A) 2. 3. 4. 5. 6. 7. S. 128,000.00 NOTE: To insur-e pr-oper .00 credit to your- account, 534,968.00 submi t the upper- portion .00 of this form with your- 382,653.60 tax payment. .00 28,000.00 (S) 1,073,621.60 Stocks and Bonds (Schedule B) 0) (2) (3) (4) (5) (6) (7) Closely Held Stock/Partnership Interest (Schedule C) Mor-tgages/Notes Receivable (Schedule D) Cash/Bank Deposits/Misc. Personal Property (Schedule E) Jointly Owned Property (Schedule F) Transfers (Schedule G) Total Assets APPROVED DEDUCTIONS AND EXEMPTIONS: 9. Funeral Expenses/Adm. Costs/Misc. Expenses (Schedule H) 10. Debts/Mortgage Liabilities/Liens (Schedule I) 11. Total Deductions 12. Net Value of Tax Retur-n 13. Char-itable/Governmental Bequests; Non-elected 9113 Trusts (Schedule J) 14. Net Value of Estate Subject to Tax (9) nO) 32,095.17 106.608.12 ell) Cl2) (3) Cl4) 1:-i8.70:-i 79 934,918.31 .00 934,918.31 NOTE: If an assessment was issued previously, lines 14, 15 and/or 16, 17, 18 and 19 will reflect figures that include the total of !hh returns assessed to date. ASSESSMENT OF TAX: 15. Amount of Line 14 at Spousal r-ate (15) 16. Amount of Line 14 taxable at Lineal/Class A rate (16) 17. Amount of Line 14 at Sibling rate (17) 18. Amount of Line 14 taxable at Collateral/Class B rate (lS) 19. Principal Tax Due TAX CREDITS: .00 X 00 .00 934,918.31 X 045 = 42,071.32 .00 X 12 = .00 .00 X 15 = .00 (9)= 42,071.32 PAYMENT RECEIPT DISCOUNT (+) AMOUNT PAID DATE NUMBER INTEREST/PEN PAID (-) 07-27-2001 CDOOO096 1,052.63 20,000.00 02-02-2002 CDOO0825 .00 21,018.69 BALANCE OF UNPAID INTEREST/PENALTY AS OF 02-03-2002 TOTAL TAX CREDIT 42,071.32 BALANCE OF TAX DUE .00 INTEREST AND PEN. 3.45 TOTAL DUE 3.45 * IF PAID AFTER DATE INDICATED, SEE REVERSE FOR CALCULATION OF ADDITIONAL INTEREST. ( IF TOTAL DUE IS LESS THAN $1, HO PAYMEHT IS REQUIRED. IF TOTAL DUE IS REFLECTED AS A "CREDIT" (CR), YOU MAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.) PLEASE FILE THIS REPORT WITHIN TWO YEARS OF DATE OF DEATH REGARDLESS OF THE STATUS OF THE ESTATE. IF ESTATE IS NOT COMPLETED, FILE a 6.12 FORM YEARLY UNTIL COMPLETION. STATUS REPORT UNDER RULE 6.12 Name of Decedent: ZORA G. BOWMAN Date of Death: Mav 1. 2001 Will No.: 21-01-00489 Admin No.: Pursuant to Rule 6.12 of the Supreme Court Orphans' Court Rules, I report the following with respect to completion of the administration of the above-captioned estate: 1 . State whether administration of the estate is complete: Yes~ No 2. If the answer is No, state when the personal representative reasonably believes that the administration will be complete: . 3. If the answer to NO.1 is yes, state the following: A. Did the personal representative file a final account with the Court? Yes No ~ B. The separate Orphans' Court No. (if any) for the personal representative's account is: C. Did the personal representative state an account informally to the parties in interest? Yes No ~ The Executors were the sole beneficiaries. D. Copies of receipts, releases, joinders and approvals of formal or informal accounts may be filed with the Clerk of the Orphans' Court and may be attached to this report. (717) 761-4540 Telephone No. Date: ,,)\,)11 '7 2(,10 J ~p ~~7;)- Signature (".~ Richard W. Stewart Johnson, Duffie, Stewart & Weidner 301 Market Street, P.O. Box 109 Lemoyne. P A 17043-0109 Address Capacity: Personal Representative ~ Counsel for Personal Representative REV-1500EX/6-001 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE DEPT 280601 HARRISBURG, PA 17128-0601 REV-1500-- c OFFICIAL USE ONLY /6 - .,,23/ - J? FILE NUMBER 21-01 o 0 4 8 9 INHERITANCE TAX RETURN RESIDENT DECEDENT I- Z W C W U W C DECEDENT'S NAME (LAST, FIRST, AND MIDDLE INITIAL) BOWMAN, ZORA G. DATE OF DEATH (MM-DD-YEAR) DATE OF BIRTH (MM-DD-YEAR) May 1, 2001 August 14, 1922 (IF APPLICABLE) SURVIVING SPOUSE'S NAME (LAST, FIRST, AND MIDDLE INITIAL) COUNTY CODE YEAR NUMBER w '""' ~:!(I) u"'>: w..u ",00 u"'~ ..'" .. " [R] 1. Original Return D 4. Limited Eslate [K] 6. Decedent Died Testate (Attach copy of Will) D g, Litigation Proceeds Received D 2, Supplemental Return D 4a. Future Interest Compromise (date o/death after 12-12-82) D 7. Decedent Maintained a Living Trust {Attach oopyofTrust) D 10. Spousal Poverty Credit (date of death between 12-31-91 and 1-1-95) SOCIAL SECURITY NUMBER 187 - 16 6525 THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS SOCIAL SECURITY NUMBER D 3. Remainder Return (date ofdealh prKJrto 12-13-82) [X] 5. Federal Estate Tax Return Required 8. Total Number of Safe Deposit Boxes D 11. Election to tax under Sec. 9113(A) (Attach Sch 0) '""' Z W o Z o .. U) W '" '" o u NAME FIRM NAME (If~plicable) Johnson D ff' TELEPHONE NUMBER COMPLETE MAILING ADDRESS 301 Market St. P. O. Box 109 Lemoyne, PA 17043-0109 , OFFI 128,000.00 ;;(P. ~ oS cr f" -r1 534,968.00 rn CD I j::>. 382,653.60 -0 w " en 0 Richard W. stewart USE ONLY 5] (5) 1,073,621.60 (717 ) 761-4540 (11) (12) (13) 138,703.29 934,918.31 z o ~ ::J l- ii: <( u W D::: 1. Real Estate (Schedule A) 2, Stocks and Bonds (Schedule B) 3. Closely Held Corporation, Partnership or Sole-Proprietorship 4, Mortgages & Notes Receivable (Schedule D) 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) 6. JoinUy Owned Property (Schedule F) D Separate Billing Requested 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G or L) 8. Total Gross Assets (total Lines 1-7) (1) (2) (3) (4) (5) _0_ (14) 934,918.31 (6) (7) 28,000.00 -0- 42,071.32 -0- -0- 42,071.32 9. Funeral Expenses & Administrative Costs (Schedule H) 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) (9) (10) 32,095.17 106,608.12 11. Total Deductions (total Lines 9 & 10) 12. Net Value of Estate (Line 8 minus Line 11) 13. Charitable and Governmental Bequests/See 9113 Trusts for which an election to tax has not been made {Schedule J) 14. Net Value Subject to Tax (Line 12 minus Line 13) SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES z o ~ I-' ::J Q. ::i! o U ~ 15. Amount of line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 (a){1.2) x.o_ (15) x .oli (16) x .12 (17) x .15 (18) (19) 16. Amount of Line 14laxable at lineal rate 934,918.31 17, Amount of Line 14 taxable at sibling rate 18, Amount of Line 14 taxable at collateral rate 19. Tax Due 20.0 CHECK HERE IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT Decedent's Complete Address: ~ STREET ADDRESS 77 Greenspring Drive CITY Mechanicsburg I STATE I ZIP 17055 PA Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit B. Prior Payments C. Discount (1) 42,071.32 20,000.00 1.052.63 Total Credits (A+ B + C) (2) 21,052.63 3. InteresVPenalty if applicable D. Interest E. Penalty TotallnteresVPenalty ( D + E ) (3) 4. If Line 2 is 9reater 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- A. Enter the interest on the tax due. (5A) 21.018.69 -0- B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (5B) Make Check Payable to: REGISTER OF WILLS, AGENT 21. 018.69 PLEASE ANSWER THE FOllOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes No a. retain the use or income of the property transferred; ..................................... . . ............................. 0 IX] b. retain the right to designate who shali use the property transferred or its income; ................................ 0 IX] c. retain a reversionary interest; or.... ................................ ................ . 0 IX] d. receive the promise for life of either payments, benefits or care? .......................... ...................................... 0 rx.J 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? .................... ...................... .................................... [iI 0 3. Did decedent own an "in trust fo~ or payable upon death bank account or security at his or her death?............. 0 Ii] 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation? . ................ ........................ . .................... .............. D ~ IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN, Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete. Declaration of pre parer other than the p rsonal representative is based on all information of which preparerh any knowledge Patrie . Dapp Pine Woods Rd., Wellsville, PA SIGNATURE OF PRE~7Jt~NTATIVE ADDRESS Richard W. stewart, Esq. 301 Market st., P. O. Box 109, Lemoyne, PA 17043 Ii_ _,w For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3% [72 P.S. ~9116 (a) (1.1) (i)]. DATE i:? 02- teven G. Bowman, 2999 Dickinson Ave., Executors Cannp Hill, PA 17011 DATE For dates of death on or after January 1, 1995, the tax rate imposed on the net value of transfars to or for the use of the survivin9 spouse is 0% [72 P.S. ~9116 (a) (1.1) (ii)]. The statute does not exemot a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and filing a tax retum are still applicable even if the surviving spouse is the only beneficiary. For dates of death on or after July 1 , 2000: The tax rate imposed on the net value of transfers from a deceased child twenty-one years of age or younger at death to or for the use of a natural parent, an adoptive parent, or a stepparent of the child is 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 decedenl's lineal beneficiaries is 4.5%, except as notad In 72 P.S. ~9116(1.2) [72 P.S. ~9116(a)(1)]. The tax rate imposed on the net value of transfers to or for the use of the dacedenl's siblings is 12% [72 P.S. ~9116(a)(1.3)J. A sibling is defined, under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption. ""'~ID.I"n . 0;DMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE A REAL EST ATE !ESTATE OF BOWMAN. ZORA G. FILE NUMBER 21-01-00489 All real property owned solely or as a tenant in common must be reported at fair market value. Fair market value is defined as the price at which property would be exchanged between a willing buyer and a willing seller, neither being compelled to buy or sell, both baving reasonable knowledge of the relevant facts. Real property which is Jointly-owned with right of survlvorshln must be disclosed on Schedule F. ITEM NUMBER 1. DESCRIPTION VALUE AT DATE OF DEATH Real Estate - No. 76 Greenspring Drive, Township of Silver Spring, County of Cumberland, Commonwealth of Pennsylvania. (Deed Book X, Volume 35) Sale Price (Copy of Settlement Sheet attached) 128,000.00 TOTAL (Also enter on line 1, Recapitulation) $ 128, 000 . 00 (If more space is needed, insert addItional sheets of the same size) D~C-l'3-2lJI::11 L~: d.j H~~ :=II::. I I -:>1::.1"';'1 '-'I".uur -':;:-' .. 1,;.&. OEPARTM~USiNG,WD uR8AN-6EVELOP~~ENT' SETTLEMENT STATEMENT Affiliated Settlement ServIces Group. llP 3912 Market Street "._-;.~.- ----tyPE OF Lo'ZN"DPl"\I~"OI~~i!;0265,. 1.0 FHA ~'-.~(j"FMHA ~'''-1:-00CONV-:-UNTNS. 4. C1 VA 5.0 CONV. INS. -6. ESCROW'FT[E NUMBER:...-.-....----rLOAN.NUMBER: -.- 00002028-001 NJT 8. MORTGAG'E INSURANCE CASE NUMBER:-'- c. NOTE; This fotm is i;mi"ihed fa giV8 yeW a swtament of' a~i'Ua1 setlf9f118lli~s. Amovnrs paid to 6nd by th~-iittl9menf agant ar9 sh~-';---' Itams marked -(P.O.c.)- were paid outs/ds the closing: they are shown here for informstionBl purposes and 6(9 not Inr::/urJed in tlle/ola/s. 0- NMfE OF BORROWER: Burton E. HoFe', and Peggy eJ....Rofer ADDRESS OF BORROWER: 3441 Green Street Camp Hill, PA 17011 PatriCia 8. Dapp ancfSleven G. Bowman "'''~.First United Mortgage Services~"nc. 4931 Carlisle Pike Mechanicsburg, FA 17050 76 Greensp-nng Dnve Mechanicsburg, PA 17050 Cumberland County 38.23-0571-248 Lot(s) 159, Phase #6 of Westfields, Plan Book 62, Page 115 Affiliated Settlement Services Group. LLP .- "-. 3912 Market Street, Camp Hill. PA 17011 12/1912001 PRORATION DATE:' 12/19/2001 .~." -- ,-,- -- _.- K, -_. SUMMARY OFSELi:.ER'S TRANSACTION - _..._..n J, SUMMARY OF BORROWER'S TRANSACTION 'I 101. Contract Sales Price 128.000,00 40t Canlr.1et Sales Price F---. 128,000.00 PerscnalPropertY _.~".- 402- _..'---.'- 102. Personal Property Settlemenl.charges 10 Borrower (Una 14'0-0) ,,t51:S1 .-- .. ...-- -.-..,.... 103. 403. .-... '.ni4. "-'-. .'.------ 404. ....-- I .- -,.... -- .-~'_.' Camp Hili, PA 17011 {717l975-7839 FINAL YNAME OF SELLER: ADDRESS OF SELLER: 'F. NAME OF LEiiioER: ADDRESS OF LENDER: G:'-PRO-PERTY LOCATION: H. SETTLEMENT AGE.NT: PLACE OF SETILEMENT: I. SEttLEMENT DATE: I. 1 06.-CiiYiTO\'Vn Taxes -107. C~n~.T~:-:es-- - 12119101_._.10 108. Assessm&nts 109:-School Tax u__, __ 110. 111. 112. ----_... -_. 113. 114. 115. -..-- - 120. GROSS AMOUNT DUE FROM BORROWER: ]?O-S:--._-:T ADJUSTMENTS FOR ITEMS PAID BY SELLER IN ADVANCE: 1341 ~ij;: ~~~~::;::.'i2119101 10 -;';31:0-'=f:::.:::~;~~" ,,-...-- 408. AssesslTlElntS ~.~. 740.92 409~Scl1ool Tax 12119/01 to 06l3OJ~_J_:-=---"" 740..92 -~~ 410, ,,-,. .- -,--- 411- 41Z 413:- 414. 415. 132,011.94 420. .GROS!fAMOUNT DUE TO SELLER': <._-, J.W 501. Excess deposll (see ln9ttUctiOlls) T 40;OOO:Ou 502. Seltlement charQ8S~'to Seller (Une 1400) ..-.. .t 50J':-'Eifstlng loan(s) laken SUbject ton -_.- I 504. Payofrof'1st mlg.:..~~n to CHASE MANHAT ~_~... 1 __._~~:.~~:92 ~__paYO~ ~.""'"d m.....'~.'''''" --=::e-:-._-:..~::..._. 508. .,. -- -+--,~. . . .:fJ9 .-. _._:::- ... -.__t-=~=. 105. ADJUSTMENTS FOR ITEMS PAID BY SELLER IN ADVANCE: 12119101 ._...._.1 12131/0' I I to 08130102 I ----~..- .-- .J. _ 201. Deposit or eamest money -i02:-PrlncJpa1"amountofnewloan(S) -." 203:~EiiSting Ican{sjlclke'1SUbject to .,04: .-. -.... ~-_......_. iOe:" -~ "'~for.-----.-- .2"oa: --- 209. ..- -:+:== ADJUSTMENTS FOR ITEMS UNPAID BY SELl.ER: -~-jf 6o~~::e:e;'-'''~'=1 ~~ii A5~!~.m&Ob-.--~_ 215-'- ,. - . .- ..---'. 216. 217. 216. __.'._h___ 219. .22"0. TOTAl. PAl[fBYiFOR BORROWER 42,000.00 .. -:_{ .~~-~: ..-__:l~:~_._ I I 128.75'.33 !:I.2trlfos .. . ----.,- 510. CltylTcwn 511. County Tax -. 512. Assemne 513- 514. _. -- Sl~ .--.- .. .. S'" -- - -. 517. _.. 51a - ADJUSTMENTS FOR ITEMS UNPAID BY SELLER: :'" =-~~-=--;j~=; I 519. .:~-- - -- -~ .=~: .:--::.- - :- 520. TOTAL REDUCTidNs IN AMOUNT DUE.SELLER: I 69.561'.97 301. Gross amount due fram Borrower ( IIn.120} 302. l.ess amount paId bylfor BoiTower ( lioe 220)" --'.'..- "I -~~~~'~;_~h~ :~: ~;~:d~;; ~~::~~::u~~~;:O:line 520) ':J_~.~=_1::;~;_~::~ 9O.0~~~~ I 603. CASH {O.FR~~~~ ~ TO l ~,~L.L~~._l". ___.~~-=.36 303. CASH t C!I FROM) ( [J TO l BORROWER: -.j U:.C-l':l-dl,jkjl L:::d.~ H~~ ~el I ~e~v U~UU~ T BASED oN PRIC 128,000.00 @ DIVISION OF COMMISSION (UNE 700) AS FOLLOWS: 'l0f:'T." -. 7,680:65- to M.C:.Welker Realty ''''02:~$'--' to'~rHeally 703: Cof11mlssl~n paid at senie~-~ -704: -- ..._~ --[-- ._--,. ~I----- 7.680.00 a01. Loan Qrlglnanon Fee .2500 % 10 Flrsl United Mortgage ServlceG -80:2": LOan Dlscouni.Fae----~..-.-.- eo3."APiiF.ifs~' -'-. to First United Mongage Services 804. Credit Report 10: -'0 ~~~~ UnIted Mortgage si,NiCtJs BOs.lenders Inspecllon Fee "'806."Mortg~nce.ApplicaUonFei~- ..----." _e..~?'_ A.~umpUon F~~ -- -... aoa. lJnderwrtUng Fee to Ooliar BanI!, FSB 80f'faxService Fee .-'.'--~ciliaiBank, FSa -" 810, FundIng Fee ----.to DollarBank';""FSB 611. '.S66 auacFied for breakdoWri" n E1r8&t rom 902. MOrlgolge"ln.!lurance Premium for 903.-Hazard Insumnce Premium;o;. ... 904.Broker Pram Pd bY'Collar Bank ~_.. --',-. 100.00 I -----T --.--,-- . {S22S.00 P_O:C.ll . --r' .....--... ~50~O-~+~_ - -=r-------- .----... -.------- __I ---- 1_______ .-.... -~===._~ ....:=-~;~:~~ f' .-..- .-..----. . -,--_... ----- ._-~~~.::~.~~~--_.- -- ;!1.~~ ay yo to ($300.00 P.O.C.) 1001. Hazardlnaurance ~l.ooi:"Mcr1gage Insur.ihce--u- .1'003. City Pro'perty Taxes 1'60CC:Ounty PropertY'Taxes 'r065~"A-nnuaI Assessmeiii::! 1006-:--'- 1oifi:-----.. 1008. Agg'raoata Ac::et Adj. months@ ~months@S months@'S monlhs@$ months@S months@ S months @ S monihS@$ permonlh pormonifi per monlh ptirmonth per mOnth permQnlh pe"imontn ptlrmonth 'E~ ==+-- __ _~'-"-=-+-_h _~-==r: --+-.-.. .. ...,_L__.. 1101. Setuementore/08ingfe6 1102-:- Absiracl or lille search- 110J,~airlination 1104-:-"tl0e insurance bind'er .1105. Document preparnlion Ti06~olarY fees -'- f107. Attorney's Fees "-----..- (Includes abOVe Item6 numbers: 'd08:'f~re Insur-mca "--- to AffiJlated Settlement seiiViCis Group,LLP . _ (liiciUaea a~o.ve items numbers: 1109. Lenders coverage: S 1110. Owner's cOverage $ 1111, EndclrsemenIS100-300.a.;'- 1112. Ovemlghlbellvery Fee Tf13. .'9 --- ----- -~::=f-- --- ~~.J-- --- - -- i -.... L_ 2if6o 5.00 10 Seltlemenr6fficer 1-' -.,.- __1-- 871.S8 40,OO{tOO 12a,000.00 ' 10 AffIliated Selllemenl servlceSGroup.LLP -iO- Affiliated Seltlementservices Group,LlP ~=~- 1~~:~~, I" ._-~_" --'.---1~.OO 1201, Recording Fee.s: Deed S 25.50 Mortgage ~ 45.50 Release S -;202. CiiYiCounty IaxfstBmps- Deed S 1,2BO,OOMortgags S 1203: Stale lax/stamps' -"- DeedS 1,28ci.OoMOI'l~ge$ '-204. AssIgnment of Mortgag9i6 -ReCOrder of Deeds ..~, 1205.-.-----. -----~--I- 71.00 {2aO oo"FU --- 1~:.~?_1 1,280.00 1301. Survey 1302. Pesilnspection ----.-- 1303. TransacUon Fee- 10 M.C. Walker Reahy~-----" "--7~"'-' is.oo .'1304:-s1iwiiil=m:-fz,1'9j-To 'Si(versprrng'fWp~6ffjce--.' -.--------- ~ l 153.05 '365~--insuredCJoslng-Pfot&ctionur to. 'GuarantBeTIUe & TrusCCo. "~*"-'~ .-... ~~:-;~";~ I-~~..- 1366:." . -_. -_. -,. 1307. .'See-attaChed for breakdown -. --- ~400. .-TOT~_~~TTlEMENT C,:!~RGES{Enter on line 103,SeCtJon ~.: and -line 502: Se~~~.~ _,_. 3,2~7~~' I ._ .9,208:05 I have carefully reviewed the HUD-' SetllementStat8ment end to Ihe best of my knowleo::rge and bl!Ilief, Ills a Irue iJnd accurate Slatemerrt 01 all receipts and Oi1lbursement& made on my account or by me In this transaction. I further certify thai I hsve received a copy of he HUD-1 Senl tStatament. B"rt""E.Haf"~~ Pa" aB. P'..yGHaf" s'jj;~~W"1J ~~r1 Cc- fd~-e:.. QlTowers / . Sellers and aCCIJra1l!1 account of this !rarn;ection. I hav0 caused or will C:Juce the funds 10 be .t Self/ement Agent /2-/'9-<)1 Dale WARNING: It Is a crime to knowingly make false 1<.1 nls to Ihe United S1at6$ on lruG or any similar fcIrm, Pe,,31lieG upon convlclion can mcludll a fine and imprlsonmsrrt. For details see: TiUa18 U.S. de Sacl10n 1001 and SeelJon 1010. RE~I5"EX'13.92I. COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DeCEDENT ESTATE OF SCHEDULE C CLOSELY HELD STOCK, PARTNERSHIP AND PROPRIETORSHIP Please Print or Type FILE NUMBER 21-01-00489 BOWMAN. ZORA G. Schedule C-1 or (-2 must be attached for each business interest of the decedent, other than 0 proprietorship. ITEM NUMBER DESCRIPTION VALU E AT DATE OF DEATH 1. Schedule C-1 - Closely-held Corporation 8,615 Shares of Jet Vac Service, Inc. Date of death value 357,677.00 2. Schedule C-2 - PA Partnership 61% interest in Boco Associates Date of death value 177.291.00 TOTAL (Also enter on line 3, Recapitulation) $ 534,968.00 (If more space is needed, insert additional sheets of same size.) REV-1E05eX.(I.o7) '*' COMMONWEALTH OF PENNSYLVAN"- INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE C.1 CLOSEL Y.HELD CORPORATE STOCK INFORMATION REPORT ESTATE OF BOWMAN, ZORA G. FILE NUMBER 21-01-00489 1. Name of Corporation Jet Vac Service, Inc. Address 3 Long Lane City Mechanicsburg State PA Federal Employer I.D. Number 23- 1914 288 Type of Business Sales and Service State of Incorporation P A Date of Incorporation 12 / 4 / 1 9 7 3 Zip Code 1 7 0 5 5 Total Number of Shareholders 2 Business Reporting Year 12/ 31 / 0 1 Product/Service Equipment sales and maintenance 2. 3. 4. TYPE TOTAL NUMBER OF NUMBER OF SHARES VALUE OF THE STOCK Voting I Non-Voting SHARES OUTSTANDING PAR VALUE OWNED BY THE DECEDENT DECEDENT'S STOCK Common Voting 14,601 1. 00 8,615 $ 357,677.00 Preferred $ Provide all rights and restrictions pertaining to each class of stock. 5. Was the decedent employed by the Corporation? If yes, Position President [1i Yes 0 No Annual Salary $ 30,000.00 Time Devoted to Business 100% 6. Was the Corporation indebted to the decedent? rn Yes 0 No if yes, provide amount of indebtedness $ 76 , 998 . 11 7. Was there life insurance payable to the corporation upon the death of the decedent? 0 Yes 0 No if yes, Cash Surrender Value $ Net proceeds payable $ Owner of the policy 8. Did the decedent sell orlransfer stock of this company within one year prior to death or within two years if the date of death was prior to 12-31-82? DYes [3 No If yes, 0 Transfer 0 Sale Number of Shares Transferee or Purchaser Attach a separate sheet for additional transfers andlor sales. Consideration $ Date 9. Was there a written sharehoiders 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 soid? 0 Yes rn No If yes, provide a copy of the agreement of saie, etc. 11. Was the corporation dissolved Dr liquidated after the decedent's death? 0 Yes IXI No If yes, provide a breakdown of distributions received by the estate, inciuding dates and amounts received. DYes Il9 No 12. Did the corporation have an interest in other corporations or partnerships? 0 Yes Il9 No .' if yes, report the necessary information on a separate sheet, including a Scheduie C-1 or C-2 for each interest. ;:~;i!!'!!((' ..,.. ";;;i"!;Jj,i~:'~!!, ~~I;€~'~9Wi~9J~E9'~ti9'~:~'Qgr~~~G6,~mrI;Q.iwff~;~BI~~~HEDI)L.E)(i$W~")~~W~i;.l,:~;ii!.i; . ........ A. Detailed calculations used in the valuation of the decedent's stock. B. Complete copies of financial statements or Federal Corporate income Tax returns (Form 1120) for the year of death and 4 preceding years. C. If the corporation owned real estate, submit a list showing the complete address/es and estimated fair market value/so If reai estate appraisals have been secured, attach copies. D. List of principal stockholders at the date of death, number of shares held and their relationship to the decedent. E. List of officers, their saiaries, bonuses and any other benefits received from the corporation. F. Statement of dividends paid each year. List those declared and unpaid. G. Any other information reiating to the valuation of the decedent's stock. Zora Bowman Schedule C-l Stockinformationreport - Jet Vac Service, Inc. B. Complete copies of financial statements or Federal Corp Income tax returns 1. See enclosed copies of 1120S for the tax years of2000, 1999, and 1120 for 1998, 1997 c. If the corporation owned real estate, submit a list showing the complete address/es and est FMV. No real estate owned by the corporation. D. List of principal stockholders at the date of death, number of shares held and their relationship to the decedent. 1. ZoraBowman, 8615 shares, decedent 2. Steve Bowman, 5986 shares, son E. List of officers, their salaries, bonuses, and any other benefits received from the corporation. 1. President, Zora Bowman, $20,000 2. Vice President, Steve Bowman, $100,693 F. Statement of dividends paid each year. List those declared and unpaid. No dividends paid ESTATE OF ZORA BOWMAN JET VAC SERVICE, INC. VALUATION OF COMMON STOCK MAY 1, 2001 I;':::.> Ir;~~... rC=0.\\Jif . [ II 'i\ . . I \ ; ~ ',L I ,.-" ~ \ \\." 1, "...~. ,",Vi U '_/ -<" ESTATE OF ZORA BOWMAN JET VAC SERVICE, INC. VALUATION OF COMMON STOCK MAY 1, 2001 INDEX Valuation report Pages 1-20 SummarY Schedule 1 Adjusted book value method: Computation of indicated value Schedule 2 Compu [ation of intangible value of trained workforce Schedule 3 Formula method: Computation of indicated value Schedule 4 Computation of goodwill Schedule 5 Computation of shareholders' equity Schedule 6 Revenue ruling 59-60 method: Computation of indicated value Schedule 7 Balance sheet Exhibit 1 Income statements Exhibit 2 Adjustments to income Exhibit 3 Officers' compensation adjustment Exhibit 4 Computation of capitalization rate Exhibit 5 Professional parameters Appendix Summary of qualifications of persons responsible for preparation of this report Appendix BOLES, GROVE AND METZGER, P.c. CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 3601 NORTH FRONT STREET HARRISBURG, PENNSYLVANIA 17110 TELEPHONE: (717) 238-0446 FAX: (717) 238-3960 wWlv.bemcna.com WILLIAM B. BOLES GARY G. GROVE, RETIRED BRIAN J. METZGER BRENT W. EMRICK THEODORE D. BROSIUS LISA A. RITTER MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PENNSYLVANIA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS To the Estate of Zora Bowman C/O David Phillips, CPA Mechanicsburg, Pennsylvania 17050 At your request, we have estimated the fair market value of a 59 percent controlling interest in Jet Vac Service, Inc. (also referred to throughout this report as the "Company"), as of May 1, 2001 for estate tax purposes. We have prepared this estimate of value on the presumption that value is equivalent to "fair market value" and that "fair market value" is that price at which a willing buyer will buy and a willing seller will sell an item of property, in an arms-length transaction with neither one being under any compulsion to buy or sell, and with both having reasonable knowledge of all relevant facts. The interest being valued is not a publicly traded security with an established market. Fair market value cannot be readily ascertained by reference to any such market. Actual fair market value can be determined only by bona fide negotiations between knowledgeable buyers and sellers. Therefore, we do not represent that our estimate of value will be the amount ultimately so determined in actual bargaining or litigation. We reviewed the fundamental valuation factors applicable to this particular study. The factors considered include: . the nature of the business and the history of the enterprise . historical earnings . the value of the underlying tangible assets . the existence of goodwill or other intangible assets . the earnings capacity of the corporation . sales of other stock interests . the size of the interest to be valued . the economic outlook in general, and the anticipated impact of economic changes on the industry C4D The CPA. Never Underestimate The Value~ We analyzed the financial statements and tax returns of the Company for the years ended December 31, 2000, 1999, 1998, 1997 and 1996. We also considered an interim statement for the four months ended April 30, 2001. The balance of this report and attached schedules will analyze the valuation findings as determined by our selection of appropriate valuation techniques. The final paragraphs include our summary of findings and opinion of the market value as of May 1, 2001. Statement of Procedural Policies All related facts, comments and statistical information set forth in the report have been obtained from sources believed to be knowledgeable, reliable and accurate. All claims to property have been assumed valid and no investigation of legal fee title to real or personal property has been conducted. Liens and encumbrances, which may be against the property, have been given no consideration except as may be specifically set forth in this report. Our conclusions are based on the assumption that there shall be a continuation of the present management policies over whatever period is reasonable and necessary to maintain the character and integrity of the Company. The analyses, conclusions and opinions concerning the preparation of this business valuation report have been prepared by Michael W. Zelko, CPA, ABV, and Brent W. Emrick, CPA, ABV, MBA, CFP under the guidance and supervision of William B. Boles, CPA, ASA, CFP. No opinion has been rendered concerning the existence or possible impact on value of potentially hazardous construction materials, toxic waste or the ability of the Company to meet Environmental Protection Agency standards. No responsibility is assumed for the subject company to meet environmental approvals. Detection of hazardous substances is beyond the appraiser's scope and requires consultation with an expert in this field. The appraisers herein, by reason of the report, are not required to give testimony in court, with reference to the business herein appraised, unless arrangements have previously been made. We hereby certify that, to the best of our knowledge and belief, the statements of fact contained in this report are true and correct, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation and the Principles of Appraisal Practice and Code of Ethics of the American Society of Appraisers. The American Society of Appraisers has a mandatory re-certification program for all of its Senior Members. We are in compliance with that program. 2 The fair market value determined in this report is only valid for the date specified. The fee paid for the formulations and reporting of the conclusions set forth herein is not contingent upon the values or other opinions presented in this report. No shareholder, employee or agent of Boles, Grove and Metzger P.C. has any direct or indirect interest in the Company. This report and any or all of the information contained herein may not be disseminated or disclosed in any manner, either directly or indirectly, to any party whatsoever without prior written consent of Boles, Grove and Metzger, P.C. Introduction . Obiective The purpose of this report is to present a detailed narrative explanation of the methods, procedures and calculations used to arrive at an opinion of the fair market value of Jet Vac Service, Inc. for estate tax purposes. . Definition of Fair Market Value Fair market value is defined as the amount at which a property would change hands between a willing buyer and a willing seller, each having a reasonable knowledge of all the pertinent facts, neither being under compulsion to buy or sell. Our appraisal of a controlling interest in the Jet Vac Service, Inc., as of May 1, 2001, is in accordance with the above definition. This appraisal was also performed in a manner consistent with the guidelines set forth in U.S. Internal Revenue Ruling 59-60 C.B. 1959-1,237. . Nature of the Company Jet Vac Service, Inc. was incorporated in 1973. The Company has expertise in televising, cleaning and repairing sewer systems for municipalities, industries, commercial enterprises and contractors primarily throughout Pennsylvania. Jet Vac has embraced trench less technology as the most cost-effective way of rehabilitating existing systems. 3 . Economic Outlook THE NATIONAL ECONOMIC REVIEW First Quarter 2001 General Economic Overvi_ew According to preliminary estimates released by the Department of Commerce's Bureau of Economic Analysis, Real Gross Domestic Product ("GDP"), the output of goods and services produced by labor and property located in the United States, increased at an annualized rate of 2.0% during the first quarter of 2001. While better than an expected 1.0%-1.5% growth rate, many analysts believe there will be continuing weakness and potentially slower growth in the second quarter. Annualized growth in GDP for the fourth quarter of 2000 was revised to 1.0%, lower than the preliminary estimated rate of 1.4%. First quarter GDP reflected an increase in personal consumption expenditures, government spending, nonresidential structures, and residential structures. These gains were partly offset by a large decrease in nonfarm inventory investment and decreases in exports, equipment, and software. After leaving the federal funds target rate unchanged at 6.5% from June through December 2000, the Federal Reserve (the "Fed") lowered the rate on three different occasions during the first quarter of 2001. The Fed is closely monitoring economic growth, financial markets, productivity measures, and labor data for signs of continuing economic weakness. Many economists believe that growth will slow without further monetary and fiscal stimulus. There are continuing concerns that the economy could experience a recession. Conflicting data on inflation is generating speculation concerning the Fed's ability to continue its recently aggressive monetary policy. The Conference Board reported that the Composite Index of Leading Economic Indicators ("LEI"), the government's primary forecasting gauge, declined 0.3% in March to 108.5 after an increase of 0.5% in January and a decrease of 0.2% in February. The index attempts to gauge economic activity six to nine months in advance. Multiple consecutive moves in the same direction are said to be indicative of the general direction of the economy. In March, six of the ten leading economic indicators declined. The negative contributors to the leading index, from largest to smallest, were stock prices, vendor performance, average weekly initial claims for unemployment insurance, building permits, interest rate spread, and manufacturers' new orders for consumer goods. Positive contributors were money supply, index of consumer expectations, and manufacturers' new orders for nondefense capital goods and materials. In March the Coincident Index gained 0.1 % while the Lagging Index fell 0.4%. In its data release the Conference Board indicated that "taken together, the three composite indexes and their components suggest slow growth until late in the second quarter of this year." 4 THE NATIONAL ECONOMIC REVIEW First Quarter 2001 (Continued) The Dow Jones Industrial Average finished the quarter 8.4% lower than its fourth quarter 2000 close, while the S&P declined 12.1 % for the quarter. The NASDAQ declined 25.5% during the first quarter of 2001. Treasury bond yields consistently declined during each month of the first quarter. Consumer Spendina and Inflation According to the Bureau of Labor Statistics the Consumer Price Index ("CPI") increased 0.2% to 176.2 in March (CPI - all urban consumers, 1982-1984 = 100, before seasonal adjustment). The seasonally adjusted annual rate of inflation for the first quarter of 2001 was 4.0%, compared to 2.6%, 2.8%, and 2.1 %, respectively, for the second through fourth quarters of 2000. During calendar 2000 the CPI-U rose 3.4%, the largest annual advance since a 6.1 % rise in 1990. The energy index decelerated in the first three months of 2001, but continued to advance at a faster rate than the overall CPI. The index for energy services increased at a 26.4% SAAR (seasonally adjusted annualized rate), while petroleum-based energy costs declined at an 11.6% SAAR. The core rate of inflation, absent food and energy, rose at a 3.5% SAAR during the first quarter compared to a rise of 2.6% in 2000. Energy prices are complicating the economic picture with California continuing to experience shortfalls in electricity supply and increasing prices. Compounding the state's problem is a continuing national trend of high motor fuel prices. These situations are expected to have a negative impact on economic growth and could limit the Fed's flexibility on monetary policy by reintroducing inflationary pressures. The Producer Price Index ("PPI"), which is generally recognized as predictive of near- term consumer inflation, declined 0.1 % in March (PPI for finished goods, seasonally adjusted) following an increase of 0.1 % in February and a 1.1 % increase in January. During the first quarter of 2001 the Finished Goods Price Index increased at a seasonally adjusted annual rate of 4.9%, following a 2.9% rate of increase in the fourth quarter. Excluding food and energy, the core PPI rose 1.9% during the first quarter. Core PPI rose at a 1.2% seasonally adjusted rate during 2000. Throughout the current economic expansion productivity has been a primary feature of improved living standards and an important element in relatively low inflation. The seasonally adjusted annual rate of non-farm business productivity, measured by the hourly output of all persons, fell 0.1 % in the first quarter. The manufacturing sector, generally more volatile in its quarterly measures, reflected a 0.3% growth in productivity as output declined 5.7% and hours declined 6.0%. The first quarter productivity measures represent the poorest quarterly performance since the first quarter of 1995. The current 2.8% annual growth rate of productivity is the slowest annual rate since the third quarter of 1999 and represents the fourth consecutive quarter in which annual productivity has declined. Annual productivity reached 5.4% in the second quarter of 2000, its highest measure since the first quarter of 1973. 5 THE NATIONAL ECONOMIC REVIEW First Quarter 2001 (Continued) According to the Census Bureau of the Commerce Department, the percent change in retail sales for January to February 2001 was revised from -0.2% to unchanged. The advance estimate for March retail sales (adjusted for seasonal, holiday and trading-day differences) reflected a decrease of 0.2% from February 2001, but a 1.9% increase from March 2000 sales. Total sales for the January to March period were up 3.1 % from the same period a year ago. Personal consumption spending represents approximately two-thirds of total economic activity and is generally a primary component of overall economic growth. Real personal consumption spending increased 3.1 % in the first quarter of 2000 and 2.8% in the fourth quarter of 2000. Durable goods purchases increased 11.9% in the first quarter of 2001 after a decrease of 3.1 % during the fourth quarter. ManufacturinQ and Industrial Production Industrial production increased by 0.4% in March, the first increase since September of 2000. The year-to-year change from March of 2000 was 0.8%. During the first quarter total industrial production declined at an annualized rate of 4.7%, the harshest decline since the first quarter of 1991. In January and February, industrial production declined 0.6% and 0.4%, respectively. The manufacturing segment increased 0.3% in March, but excluding a favorable contribution from automotive related products, the manufacturing segment actually declined 0.1 %. In January and February, manufacturing declined 0.5% and 0.3%, respectively. Capacity utilization declined to 79.4% in March. So far in 2001, capacity utilization has remained below the 82% levels reported during much of last year as well the 82.1 % average level for the 1967-2000 timeframe. While productivity measures have moderated of late, the reduction in utilization provides some mitigating force to inflation. Manufacturing industries are expected to continue their weak performance until stronger economic growth and Fed rate incentives encourage higher output and investment. The Financial Markets The Dow Jones Industrial Average ("DJIA" or the "Dow") closed the first quarter at 9878.78, down 8.4% for the quarter and the year. The Dow declined 6.2% in 2000. The Standard & Poor's 500 ("S&P 500") index decreased 12.1 % during the quarter to close at 1160.3 after a decrease of 1 0.1 % for the year 2000. The NASDAQ Composite Index fell 25.5% during the quarter to close at 1840.26. The NASDAQ Composite Index was down 39.3% for the year 2000. The broad market Wilshire 5000 index closed at 10645.85, down 12.6% for the quarter. The Wilshire 5000 index reflected a loss of 11.8% in 2000. 6 In January large capitalization stocks posted relatively modest gains while the NASDAQ increased 12.2%. Despite favorable Fed Policy (three 0.5% cuts in the fed funds rate) the stock markets weakened in February and March with the NASDAQ declining 22.4% and 14.5%, respectively. Continuing worries regarding earnings and profits were behind the lackluster performance of many issues. Consensus outlooks for the stock markets are for continuing weakness as a significant recovery in earnings is not expected until late in 2001 or beyond. The monthly average yields to maturity on the 30-year Treasury bond during the first quarter of 2001 were 5.54%, 5.45%, and 5.34%, respectively, for January, February, and March. Bond prices are negatively correlated with their respective yields, which can shift abruptly due to investor reactions to major variances in reported economic data versus market expectations (Le., expected inflation, growth, monetary policy and other Fed action, etc.). Yields declined modestly throughout the quarter, as the Fed reduced key short-term rates. Interestingly, the market responded negatively in January as the 20-year and 30-year yields increased despite two 0.5% cuts in the federal funds rate. There was apparently insufficient market awareness of the extent to which the economy had slowed and bond prices reflected fears of rising inflation. Interest Rates After remaining idle since May of 2000, the Federal Reserve's Open Markets Committee ("FOMC") lowered its target for the federal funds rate by 50 basis points to 6.0% on January 3. The Committee also lowered the federal funds rate at each of its two scheduled meetings in first quarter 2001. At its January 31, 2001 meeting, the Committee lowered its target for the federal funds rate by 50 basis points to 5.5%. At its March 20, 2001 meeting, the Committee again lowered its target for the federal funds rate by 50 basis points to 5.0%. I n similar actions over the same timeframe the Board of Governors reduced the discount rate, which was targeted at 4.5% at the end of March. The Committee continues to believe that the risks are weighted mainly toward conditions that may generate economic weakness in the foreseeable future. Consensus expectations suggest that the Fed will continue lowering rates at its upcoming April and May meetings. HousinQ Starts and BuildinQ Permits Home building is generally representative of overall economic activity because new home construction stimulates a broad range of industrial, commercial, and consumer spending and investment. According to the U.S. Commerce Department's Bureau of the Census, new privately owned housing starts were at a seasonally adjusted annualized rate of 1.613 million units in March, 1 % below the revised February estimate of 1.634 million units, and 1.0% below the March 2000 rate. Single-family housing starts in March were 1.241 million, 4.0% below the February level of 1.297 million units. During the first three months of 2001, 349,500 housing units were started compared with 364,600 units for the same period in 2000, which represents a decrease of 4%. An estimated 1.593 million privately owned housing units were started in 2000, 4% below the 1999 figure of 1.667 million. 7 THE NATIONAL ECONOMIC REVIEW First Quarter 2001 (Continued) The seasonally adjusted annual rate of housing units authorized by building permits (considered the best indicator of future housing starts) was 1.615 million units in March, 4.0% below the revised February rate of 1.675, but 1.0% above the March 2000 measure of 1.597 million. Overall housing activity, while declining in February and March, has remained relatively strong and a favorable trend in mortgage rates is expected to soften the downside of a slowing economy. Unemplovment According to the labor Department's Bureau of labor Statistics, unemployment levels during the first quarter of 2001 remained historically low. After rising slightly to 4.2% in January, the unemployment rate remained steady in February and then rose modestly to 4.3% in March. March marked the forty-fifth consecutive month that the unemployment rate was below 5%. The unemployment rate for all of 2000 was approximately 4.0%, down slightly from 4.2% in 1999. Productivity during the year 2000 advanced 4.3% in both the business and nonfarm business sectors. These measures represent the largest increases since 1971 for business and 1983 for nonfarm business. Productivity measures provide a counterbalance to tight labor markets and inflation because demands for increased worker pay are more easily met when output rises. Recent data on productivity gains reflected the first monthly decrease in six years. layoff announcements, particularly in the manufacturing sector, are expected to contribute to rising unemployment for the balance of the year. Summary and Outlook Economic growth, as measured by growth in real GDP, accelerated to 2.0% in the first quarter of 2001, after registering a 1.0% annualized rate in the fourth quarter of 2000. Annual growth in GDP for 1999 and 2000 was 4.2% and 5.0%, respectively. Financial markets declined during the first quarter with the Dow registering a decline of 8.4%, the S&P 500 decreasing 12.1%, and the NASDAQ plunging 25.5%. Deteriorating corporate profits and a severe fallout in technology issues continue to hamper the markets. The seasonally adjusted annualized inflation rate for the first quarter was 4.0%, an increase from the fourth quarter 2000 rate of 1.0% but still favorable relative to the a 3.4% inflation rate for 2000, the highest level since 1990. Inflation signals are mixed but a slower pace of economic growth, generally strong (albeit decreasing) productivity, and limited pricing power are expected to contribute to modest inflation for the balance of the year. 8 THE NATIONAL ECONOMIC REVIEW First Quarter 2001 (Continued) Recognizing the rapid deceleration of the economy and troubled by near five-year lows in consumer confidence, the Federal Reserve's Open Markets Committee aggressively cut the funds rate by 1.5% during the first quarter (three consecutive 0.5% reductions between January 3 and March 20.) Additional rate cuts are expected. Many economists and analysts believe that the Fed's monetary policy, in tandem with the longer-range incentives of tax reform, will restore economic stability. However, there remain fears that second quarter growth could weaken and a brief recession is still considered a possibility. On April 18, 2001, the Fed moved to cut short-term interest rates by another 0.5%. This brings total year-to-date 2001 cuts to 2.0% lowering the target Fed funds rate to 4.5%. There is historical precedence to suggest that even further reductions may be necessary, particularly if the economy continues to erode. The Fed's press release contained the following observations: The FOMC has reviewed prospects for the economy in light of the information that has become available since its March meeting. A significant reduction in excess inventories seems well advanced. Consnmption and housing expenditures have held up reasonably well, though activity in these areas has flattened recently. Although measured productivity probably weakened in the first quarter, the impressive underlying rate of increase that developed in recent years appears to be largely intact. Nonetheless, capital investment has continued to soften and the persistent erosion in current and expected profitability, in combination with rising uncertainty about the business outlook, seems poised to dampen capital spending going forward. This potential restraint, together with the possible effects of earlier reductions in equity wealth on consumption and the risk of slower growth abroad, threatens to keep the pace of economic activity unacceptably weak. As a consequence, the Committee agreed that an adjustment in the stance of policy is warranted during this extended intermeeting period. . Reaional Outlook Road to 2001 Update on Pennsvlvania published by The Pennsylvania State University reports that the performance of the state's economy in the near future will not be spectacular, but solid growth should be achieved. The pace of growth will likely be moderate, continuing to mirror the U.S. Forecasts for 2001-02 suggest: . Gross State Product (GSP) will continue to expand but at a slower pace. . The rate of growth in GSP will be slightly below the rate of GNP for the U.S. . The unemployment rate may rise to the vicinity of 5.0 percent in PA and the U.S. . Pennsylvania will continue to lag most of its neighbor states in the rate of growth in GSP. Pennsylvania's economy progressed in the 1990s. Employment and population did not expand as rapidly as nationwide, but the state has kept pace with the nation in reducing unemployment. 9 Current forecasts by the Verizon Economics Group suggest that the unemployment rate may rise modestly in Pennsylvania to near 5.0 percent during 2000-2002. In addition, annual growth in non-farm employment is forecast to slow down to near 1.0 percent or less. . Industry Outlook According to Road to 2001 Update on Pennsylvania, since June 1995 there has been an upswing in employment in the construction sector in Pennsylvania, highlighted by a burst of growth during June 1998-99. All three major industries in the sector have participated in the upswing. During June 1997-99 special trade contractors added 18,465 jobs, heavy construction (excluding building) added 6,067 jobs and general building contractors increased by 4,774 jobs. There are 14 industries in the construction sector. All but one of these industries added jobs during 1997-99 compared to six with net employment declines over the decade of the 1990's. The leading job growth industries during June 1997-99 were plumbing, heating, air conditioning contractors, electrical contractors, and heavy construction- except highway. Employment in construction expanded for the fourth straight year in Pennsylvania during June 1998-99. In 1998-99 the rate of job growth also more than doubled in the state from 3.6 percent in June 1997-98 to 9.2 percent during June 1998-99, when over 21,000 jobs were created in the sector. The sustained growth of the national and Pennsylvania economies seems to be impacting most favorably on the construction sector after four years of job declines in the early recession years of the 1990's. The turnaround in employment in the sector is most noticeable in the performance of the sector among counties across the state. Over the entire decade of the 1990's including the last four years of statewide growth, 28 counties had net declines in construction employment. In the eastern half of the state only a few counties in the southeast had job gains, while most counties in the western portion of the state had gains. During June 1997- 99, only 10 counties lost jobs in construction. These counties were mainly rural counties in north central Pennsylvania. Every county in the southeast had gains - even Philadelphia and Delaware counties . Valuation Methodology The general guidelines for the valuation of closely held common stocks for federal gift and estate tax purposes are contained in Revenue Rulina 59-60. Revenue Rulina 59-60 was modified somewhat by Revenue Rulina 65-193. Revenue Rulinq 68-609 presents a "formula method" for arriving at values for intangibles, but it states that, "The formula approach should not be used if there is a better evidence available from which the values of intangibles can be determined". In addition Revenue Rulina 68- 609 endorses the application of Revenue Rulina 59-60 for valuations for income tax and other tax purposes and for valuations of business interests of any type. 10 Revenue RulinQ 68-609 states: The general approach, methods, and factors, outlined in Revenue Ruling 59-60, as modified, are equally applicable to valuations of corporate stocks for income and other tax purposes as well as for estate and gift tax purposes. They apply also to problems involving the determination of the fair market value of business interests of any type and of intangible assets for all tax purposes. . Basis of AccountinQ Jet Vac Service, Inc. prepares its tax returns on the accrual basis of accounting, which means that income is recognized as it is earned and expenses are recognized as they are incurred whether or not cash is received or paid out at that time. . Adiustments to Net Income Earnings are considered the primary factor in a number of valuation techniques; therefore, the elements that comprise earnings were reviewed for material factors hat could distort income. These factors are detailed on Exhibit 3. The item that most often needs adjustment on the income statement of a privately held entity is the compensation paid to owners. Actual compensation tends to be based on what the business can afford, or how the owners want to be compensated rather than on the value of the economic services they perform. The general idea of the compensation adjustment is to substitute for the compensation actually paid to the owners, the cost of hiring a non-owner outsider to perform a similar function. Officers' compensation was reviewed; see Exhibit 4. As shown in Exhibit 3, an adjustment was made to net income to add back officers' compensation in excess of normalized compensation. This adjustment is made to more accurately portray the true economic earning power of the entity. The adjustment for excess depreciation represents the difference between the fair market value and the book value of fixed assets spread out over a six-year period. The entity is an S-Corporation, and income taxes flow through to the individual shareholders. However, the capitalization rate determined in Exhibit 5 relates to after tax earnings. We considered it appropriate to include an adjustment for income taxes. 11 Robert Morris Associates Annual Statement Studies Robert Morris Associates (RMA) recommends that Statement Studies data be regarded only as general guidelines and not as absolute industry norms. It should be noted that the information collected by RMA is not selected by any random or statistically reliable method. As such, the information utilized from the RMA Studies was considered only as a general guideline. . Computation of Capitalization Rate In computing the capitalization rate using the build-up method, we have started with the rate, as of the appraisal date, available on long-term bonds. The rate utilized is reported by the Federal Reserve Bank of St. Louis. This rate is then normalized by subtracting the horizon premium of bonds over bills, as detailed in Ibbotson's Stocks, Bonds, Bills and Inflation 2001 yearbook. This yearbook is a statistical history of market results from 1926 to 2000. This normalizes the short-term yield. In other words, it prevents the use of a yield that may be abnormal when compared to long-term historical results. Due to practical problems encountered in the use of a short-term rate as the risk free rate, we utilize a "normalized" risk free treasury yield. The normalized risk free treasury yield is developed by subtracting from the long-term bond yield the average expected amount by which long-term bond yields exceed short-term bill yields. This excess is called the "horizon premium". The equity risk premium, the difference in premium between stocks and bonds, is then added to the normalized risk free treasury yield to develop an average market return. This is the extra return earned by an average equity investor in excess of the return on long-term treasury securities. In other words, it attempts to measure the rate of return that an average investor would consider adequate for an investment in a Standard & Poor's 500 Company. The average market return is then adjusted to take into consideration the additional risk inherent in a small closely-held company. There is obviously more risk associated with a closely-held company than with a major publicly traded S&P 500 company. Therefore the capitalization rate must be adjusted to take into consideration this additional risk. We have utilized Ibbotson's "Expected micro-capitalization equity size premium" of 2.6 percent. This premium applies to companies with capitalization below $252 million. This rate is then adjusted for other risk factors inherent in the company being valued. We have adjusted the rate an additional 4.0 percent to account for lack of diversification in the Company's operations. 12 The discount rate for net cash flow is converted to a discount rate applicable to net earnings by adding an increment specific to net earnings. We have utilized 4.0 percent. One method of developing a company's net earnings discount rate or increment specific to earnings is to develop a conversion rate based on a range of typical differences between dividend yields (dividends/stock price) and earnings yields (earnings/stock price) of public companies. While there have been no definitive studies at this point, many experienced practitioners believe that this difference most typically ranges from 3 to 6 percent. In order to convert the discount rate for net earnings to a capitalization rate for net earnings, the expected long-term average compound growth rate is subtracted from the discount rate for net earnings. Based on discussions with management, we believe that 6.0 percent is an appropriate growth rate for the Company. This calculation renders the net earnings capitalization rate applicable to the next year. To apply the capitalization rate to the Company's recent historical benefit stream it should be divided by 1 plus the projected growth rate. As detailed in Exhibit 3, the capitalization rate derived under this method is 15.76 percent. In our opinion, this capitalization rate is representative of the current environment. Search for Guideline Companies We reviewed various sources to determine if any comparable publicly-traded companies existed from which we could derive various price/earning ratios, price/book value ratios, etc. We found none, in our opinion, that were comparable to the entity under study. Valuation Methods The methods considered in reaching our conclusions include the following: 1. Adjusted book value method 2. Formula method 3. Revenue ruling 59-60 method . Adiusted book value method As shown in Schedule 4, an estimated market value has been determined in accordance with the adjusted book value method. This technique provides a valuation based on the fair market value of the assets owned by the Company less any outstanding debts. We have increased shareholder's equity by $206,867 to account for the excess of fair market value of machinery and equipment over book value. The Company discloses this amount annually in its reviewed financial statements. 13 We have also included a value for a trained and assembled workforce. According to ValuinCl Intanaible Assets, by Robert F. Reilly and Robert P. Schweihs, a trained and assembled workforce is a very valuable intangible asset for many companies. Also, a number of court cases validate that an assembled workforce can be appropriately recognized as having a distinct, quantifiable value. In Ithaca Industries, lnc.v. C.I.R., the appellate court held that an in-place workforce was an intangible asset with a determinable value. The replacement cost method is frequently used to estimate the value of an assembled workforce. Costs to replace an assembled workforce include expenditures to recruit, hire, and train a replacement workforce. Typically, in the replacement cost method, the anticipated costs to recruit, hire, and train are expressed as a percentage of total compensation for employees. We have classified employees by years of experience. The Company's workforce consists of approximately 15 employees with more than half having 10 or more years experience in a very specialized industry. The estimated costs to recruit, hire, and train are multiplied by the total compensation for the different employee levels to result in a value of the assembled workforce. We have calculated this value in Schedule 3. The value indicated under this method is $869,240. . Formula method In Schedule 4, an estimated value has been determined in general accordance with the formula or excess earnings method. This method is a two-stage valuation technique in which net tangible assets are valued using an updated version of ARM 34 and U.S. Internal Revenue Ruling 68-609. An appropriate rate of return on shareholders' equity or net tangible assets must be developed to utilize this method. We have used the industry average taxable income as a percentage of shareholders' equity from the Robert Morris Annual Statement Studies. These percentages are derived from companies that are in a similar industry. The Company's normalized income ranges from $57,495 to $103,330 depending on the year (Schedule 5). We believe that these earnings are a sustainable level of earnings for the future. In applying this method, we have weighted excess income in a manner in which the results of the most recent year are given the most weight and the earliest period the least weight. Generally, the results of the most recent year are more indicative of future performance than the results of earlier years, due to changes in numerous factors and trends. Finally, it is necessary to apply an appropriate rate to capitalize excess earnings. Since the risk attached to the intangible portion of assets is substantially greater, and because goodwill is perishable, a higher capitalization rate than the rate applied to total equity is necessary. In our opinion, a rate of 25.0 percent is adequate for capitalizing pre-tax excess earnings, when a capitalization rate of 15.76 percent is utilized for after-tax earnings. 14 As shown in Schedule 5, the goodwill of Jet Vac Service, Inc. is estimated to be $48,976. The value of the net tangible assets and the intangible assets are then combined, to produce a total value of the subject corporation (Schedule 4). The total Company value derived under this method is $612,019. . Revenue rulinQ 59-60 method The revenue ruling 59-60 method shown on Schedule 2 includes both earnings and shareholders' equity as valuation factors. The computation produces a factor that is used to calculate the value of the Company's net income in general accordance with the principles set forth in U.S. Internal Revenue Ruling 59-60 and its subsequent modifications. Earnings for 2000, 1999, 1998, 1997 and 1996 were given a weight of 5,4,3,2 and 1, respectively. The most recent year is given the majority of weight, because the most recent year is assumed to be the most indicative of the future trend in earnings Although earnings are given primary consideration by using a 60% weight, net equity must also be considered. As a guide we referred to U.S. Internal Revenue Ruling 59- 60 that provides: "Earnings may be the most important criterion of value in some cases whereas asset value will receive primary consideration in others. In general, the appraiser will accord primary consideration to earnings when valuing stocks of companies which sell products or services to the public; conversely, in the investment or holding type of company, the appraiser may accord the greatest weight to the assets, underlying the security to be valued." Accordingly, a higher weight was assigned to earnings. The value of the Company as indicated by the revenue ruling 59-60 method is $606,259. 15 Conclusion When comparing the values, as listed in Schedule 1, we considered it necessary to weight the various techniques to indicate which methods were more meaningful in relation to the Company. The adjusted book value method values the assets of the Company at fair market values less any liabilities and takes into account the value of the Company's in-place workforce. This method presumes that the subject company's value will be realized by the hypothetical sale of its assets as part of a going concern. We have assigned a weight of 40% to this method. A higher weight was applied to the adjusted book value method because it explicitly recognized an asset (in-place workforce) that was only implicitly or partially included in the other two methodologies. The formula method or excess earnings method, which includes a goodwill factor as well as the adjusted net asset value of the Company, is a commonly used method in business valuations. The excess earnings method was developed by the U.S. Treasury Department in 1920 in Appeals and Review Memorandum 34 (ARM 34). This method is also referred to as the formula method. The formula method computes a company's equity value based on the "appraised" value of tangible assets plus an additional amount for intangible assets. A company's tangible assets should provide a current return to the owner. Since there are risks associated with owning a company's assets, the rate of return on those assets should be equivalent to the risk assumed. The rate utilized should be the prevailing rate of return required to attract capital to that industry or an appropriate rate above the risk free rate. Any returns produced by the company in excess of the rate on tangible assets are considered to arise from intangible assets. In our opinion, the formula method accurately portrays the economic substance of the Company and confirms the value derived under the revenue ruling 59-60 method; therefore, we assigned a weight of 30.0 percent to this method. The revenue ruling 59-60 method has been assigned a weight of 30.0 percent, because it includes both earnings and equity as valuation factors. We consider these elements important in our analysis. 16 PREMIUMS AND DISCOUNTS . Control premium A controlling shareholder enjoys many benefits that are not enjoyed by minority interest owners. Controlling interests are therefore usually worth more, often considerably more, than a proportionate share of the value of the total entity. The methods utilized result in controlling interest values; therefore, no additional premium is required. . "S" Corporation status premium No premium has been applied for S Corporation status. In our experience, for business entities of this size, stock has not been sold. We have found that buyers desire an asset purchase. . Lack of marketabilitv discount The concept of marketability involves the liquidity of an interest. In other words, marketability is how quickly and assuredly an investment can be converted to cash at the owner's discretion. Generally, an investment has greater value if it is readily marketable than if it is not, since investors prefer liquidity over the lack of it. An interest in a closely held business is not as liquid as compared to a majority of alternative investments. Since closely held interests are not readily marketable, a discount for lack of marketability is appropriate. We have reviewed various studies and court cases to assist us in developing a discount rate for lack of marketability. One source of information utilized in our search for an appropriate lack of marketability discount rate was the data available on transactions in letter stock. Letter stock is similar to the freely traded stock of a public company except that it is restricted from trading on the open market for a specified period of time. This time period is usually two years, however it can vary. The only difference between the letter stock of a company and its publicly traded shares, which are unrestricted, is the marketability of the interest. Therefore, the difference between the price of a company's publicly traded stock and the transaction price garnered for its letter stock should provide guidance as to an appropriate discount for restrictions on marketability. SEC (Securities ExchanQe Commission) "Accounting Release No. 113" imparts that the discount for lack of marketability can be substantial. 17 Restricted securities are often purchased at a discount, frequently substantial, from the market price of outstanding unrestricted securities of the same class. This reflects the fact that securities which cannot be readily sold in the public market place are less valuable than securities which can be sold, and also the fact that by the direct sale of restricted securities, sellers avoid the expense, time and public disclosure which registration entails. Restrictions on the transfer of letter stock eventually expire and the seller can transfer the shares in the stock market. The same is not true of closely held stock or interests that are encumbered by a partnership agreement that restricts the disposition of partnership assets. Therefore, the discount assigned to closely held shares or interests encumbered by other means can be substantially greater than that indicated by the spread between the letter stock of a public company and its freely traded counterpart. In the "Institutional Investors Study Report" of the Securities and ExchanQe Commission which was published in 1971, one of the topics researched was the amount of discount at which transactions in restricted stock (letter stock) took place compared to the prices of identical but unrestricted stock on the open market. The study detailed the difference between the open market price on letter stock transactions and the price of unrestricted stock trades. The amount of the spread was equivalent to the discount due to lack of marketability. These transactions were further broken down by the market in which the security was traded. The four categories utilized were the New York Stock Exchange, American Stock Exchange, over-the-counter (OTC) reporting companies, and OTC non-reporting companies. Reporting companies are those that must file forms and other information with the SEC. A non-reporting company is a publicly traded stock that is not subject to the reporting requirements of the SEC. A stock traded over-the-counter can avoid the reporting requirements by having assets of less than $1 million or by having 500 shareholders or less. The smaller non-reporting public companies probably better reflect the marketability characteristics of a closely held entity. The study detailed that the discounts on the letter stocks were smallest for shares traded on the NYSE and increased, in order, for AMEX listed stocks, OTC reporting companies and OTC non-reporting entities. For OTC non-reporting companies, the largest frequency of observations fell in the 30 to 40 percent discount range. Over 30 percent of the OTC reporting companies had discounts of over 30 percent. The overall mean average discount indicated by the study was a 25.8 percent. However, for OTC non-reporting companies, which are probably more comparable to closely held companies, the average discount was 32.6 percent. 18 Also reviewed was the "Moore Study of Court Decisions on Closely Held Interests" published in Trusts & Estates, February 1987, pp. 40-52. This study concludes that lack of marketability discounts can vary substantially in size, depending on a multitude of factors, but that the magnitude of lack of marketability discounts has steadily increased over the years. For the years 1980 to 1982 the study indicated an average discount of 28.6 percent. Evidence from more recent studies, namely the "FMV Study" published in Estate Planninq in 1994 and the "Management Planning Long-Term Study" published in The Handbook of Advanced Business Valuation in 2000, show that marketability discounts are not as large as they were in the early to mid 1980's. The average discounts shown by these studies were 23.0 and 27.1 percent respectively. We also examined other studies of discounts for lack of marketability. In particular, we reviewed the "Gelman Study" published in 1972, the "Trout Study" published in 1972, the "Moroney Study" published in 1973, the "Maher Study" published in 1976, the "Standard Research Consultants Study" published in 1983, the "Willamette Management Associates Study" published in 1984. The courts commonly use the data available on letter stock discounts to select an appropriate discount rate for lack of marketability in valuing closely held entities. However, some recent court cases have resulted in judges rejecting this data that valuation professionals had used to support the marketability discounts in their reports. One such case is Mandelbaum VS. Commissioner. The court cited the following factors that might cause a marketability discount to be higher or lower than benchmark averages: 1. Financial statement analysis 2. Dividend policy 3. Nature of the company, its history, its position in the industry and its economic outlook 4. The company's management 5. Amount of control in the transferred shares 6. Restrictions on transferability of the stock 7. Holding period for the stock 8. Company's redemption policy 9. Costs associated with a public offering While a number of these items may be considered repetitive factors that should have already been considered in the valuation process, particularly factors that are also considered in reaching a minority value, the conclusions reached reveal an overall trend in the tax courts. Although courts continue to accept discount studies for establishing marketability discounts, they no longer seem satisfied by a blind application of those studies. The presiding judge in the Mandlebaum case defends his position by noting that it may be appropriate to consider the same factors again for different reasons. 19 We believe that a lack of marketability discount for the size of the interest under consideration and the relatively small value of the Company would not involve significant financing costs or high brokerage fees. Specifically, we are of the opinion that the sale of an interest of this size could easily be financed based upon the combination of tangible and intangible assets, the earnings history and the stability of the business and the industry. The lack of marketability discount that we considered appropriate is based upon the estimated costs of brokerage and an estimated time for sale of one year. In our judgment, based upon the studies cited, and other factors noted, a 15 percent discount for lack of marketability is deemed appropriate. Summary In summary, the fair market value indicated for Jet Vac Service, Inc. on a controlling interest basis, for a 59.0 percent ownership interest for estate tax purposes, as of May 1,2001 is $357,677. However, because the validity of the assumptions made could be ultimately determined only as a result of litigation, if a controversy were involved, and because actual fair market value can only be determined by bona fide bargaining between well informed buyers and sellers, we do not represent that the amount set forth above will be the amount ultimately so determined. f3 f)k AS~ ) January 30, 2002 20 JET VAC SERVICE, INC. (AN S CORPORATION) VALUATION OF COMMON STOCK MAY 1, 2001 SUMMARY 1':,......... ..................................-...--.-.'.-.:.;-;.;..--':;'-':""""::"::'::,:,:1 Indicated value Weight $869,240 40.0 % 612,019 30.0 606,259 30.0 100.0 % Adjusted book value method (Schedule 2) Formula method (Schedule 4) Revenue ruling 59-60 method (Schedule 7) Total indicated value before discounts Lack of marketability discount Total indicated value after discounts Shares outstanding Total indicated value per share Shares to be valued 15.0% Indicated value for a 59% controlling interest Schedule 1 Weighted value $347,696 183,606 181,878 713,180 (106,977) 606,203 14,601 41.52 8,615 $357,677 JET VAC SERVICE, INC. (AN S CORPORATION) VALUATION OF COMMON STOCK MAY 1, 2001 ADJUSTED BOOK VALUE METHOD COMPUTATION OF INDICATED VALUE 1":::":"::';';':':"::';:'-"":"':';'-"" ...-.-.............-.. ...-.--.'. ..-.....;..........;.:,..:.,::-;.::".:...,:,.;.;.............................,..................:...,...:............,....;...:.,..:....,....-..:.........:.....:..,. .. ... ..:.....'....'...:.'...,-..........,.,.....,'...'.-...'",:-,,:,'-'.'-,.,_.;-.:::.,.:.,-, .,.:.:.:.:.,.,.:.'.:.,.:.:.,:.: Shareholders' equity - April 30, 2001 (Exhibit 1) $356,176 Fair market value of fixed assets over book value 206,867 Value of intangible asset for trained workforce (Schedule 3) 306,197 Indicated value $869.240 Schedule 2 JET VAC SERVICE, INC. (AN S CORPORATION) VALUATION OF COMMON STOCK MAY 1, 2001 k:::';':':"';'-'" ADJUSTED BOOK VALUE METHOD COMPUTATION OF INTANGIBLE VALUE OF TRAINED WORKFORCE .... .................... ........-..........-.-..;.:.:.,.:.;.:.;-:.:.,:::1 Schedule 3 JETVAC SERVICE, INC. (AN S CORPORATION) VALUATION OF COMMON STOCK MAY 1, 2001 FORMULA METHOD COMPUTATION OF INDICATED VALUE Shareholders' equity - April 30, 2001 (Exhibit 1) $356,176 Fair market value of fixed assets over book value 206,867 Value of goodwill (Schedule 5) 48,976 Indicated value $612,019 Schedule 4 JETVAC SERVICE, INC. (AN S CORPORATION) VALUATION OF COMMON STOCK MAY 1, 2001 FORMULA METHOD COMPUTATION OF GOODWILL ........-.......-.-..............,...........................,.-,"'.,.",.'.:".'-"."" ........ ...... ....................-...,..._-.,."....,....,...,............................,._'...:-,...:.,.:.'.:'-:.,-,.:.:...........-.....'.....-.....'.........-...-............,...........,..... ...........-J I.,..e..'... 2000 1999 1998 1997 1996 Adjusted income before income taxes (Exhibit 3) $90,351 $71,206 $115,570 $47,640 $112,680 Average shareholders' equity (Schedule 6) 328,545 310,301 280,086 259,923 228,607 Industry average taxable income as a percentage of shareholders' equity' Weight 17.5% 33.3% 25.7% 25.5% 25.5% 57,495 103,330 71,982 66,280 58,295 32,856 (32,124) 43,588 (18,640) 54,385 5 4 3 2 1 $164,280 ($128,496) $130,764 ($37,280) $54,385 $183,653 15 $12,244 Normalized income Excess income Weighted excess income Sum of weighted excess income Sum of weights Weighted average excess income Goodwill range: Minimum 30.0% $40,813 Initial 25.0% $48,976 Maximum 20.0% $61,220 $48,976 Indicated goodwill . Source - Robert Morris Annual Statemernt Studies, 2000-2001 edition, SIC #1799. Schedule 5 JET VAC SERVICE, INC. (AN S CORPORATION) VALUATION OF COMMON STOCK MAY 1, 2001 FORMULA METHOD COMPUTATION OF AVERAGE SHAREHOLDERS' EQUITY 1.;.;.;........:...:.;-:.,.:...:...:.>:.:::,'.,:.,.:-;.:.c-:......-........ . ...... .. ............. .....'...-',............'..'.-:...,.,...,-:.,.,.;.:.....:.,,':':'::","'-':;-:,'-',:,::"',"':':"'::""::""::n :,:",:"",:;",:"",-";;";",,,,,,:,:;:,,:,.,-,-, -..'.,-.-;.,-.';,-' -'-;-,..-..-: "'"':';"':::"::'::;':::':".:,:,:.::,.;.",-;.,-,,:;::"';:;":,"':":,:,1 2000 1998 1999 Shareholders' equity (Exhibit 1) 1997 $296,262 $263,910 $332,750 $324,340 Average common shareholders' equity: $( $332,750 + $324,340 ) I 2 $328,545 $( $324,340 + $296,262 ) 12 $310,301 $( $296,262 + $263,910 ) I 2 $280 ,086 $( $263,910 + $255,935 ) I 2 $( $255,935 + $201,278 ) I 2 Schedule 6 $259,923 1996 $255,935 $228,607 JET VAC SERVICE, INC. (AN S CORPORATION) VALUATION OF COMMON STOCK MAY 1, 2001 REVENUE RULING 59-60 METHOD COMPUTATION OF INDICATED VALUE t-;:.,.,::,:.:-:...-,..,.....'.. .-.-.-...'........................................-......,.,.,....,""-'-'-'-'-:,'-:,",:,"-'-:,",:,'.'-'-:-',:",",:,'-'-:-'-....,-:.,-'.:...,.:,.-..,-:.'-:-:-,-..,.... -.,:.'-'.',:-;.:.:.....:'..:.:-:-'-:..-'-,;,,':,-:;,;:-:-,;:;,.,,:.':':';'-':';"':::'::':-';:-:'::',',:,:,';':':';';';';';',"'::X";':',',',:,:,:,':;'::::"'::,',',:,:","":.;,CO:':;:':",'-',',"',::"'," ;""::::,'"",:,:,:,:.:;:.=:::=.;.;::.;.;.;,::>:::;:;;.=:,.,::-:m Adjusted Weighted net income Weighting adjusted Year (Exhibit 3) factor net income Calculation of weighted average 2000 $71,382 5 $356,908 net income 1999 58,405 4 233,618 1998 87,248 3 261,743 1997 40,494 2 80,988 1996 85,485 1 85,485 Totals 15 1,018,742 Weighted average adjusted net income 67,916 Capitalization rate (Exhibit 5) 15.76 % Value of earnings $430,939 Earnings factor $430,939 x 60.0% $258,563 Adjusted shareholders' equity factor (Schedule 2) $869,240 x 40.0% 347,696 Indicated value $606,259 Schedule 7 JET VAC SERVICE, INC. (AN S CORPORATION) SUMMARY OF BALANCE SHEETS APRIL 30, 2001 AND DECEMBER 31, 2000, 1999, 1998, 1997 AND 1996 f'.;.:.:';':';-:'- ;,;,:,;,:,"",:,;,:-.":-,-"",,,;"':':':-'-'-'.:-:.-,,.,.:...:.,,',:.:.;., .,:.:.,.:.:.;-,,-.,-:.'.'.:,<.'.:.,.:-;.,-,.:.:.:-:-:-'.:.:.....,.:...:...,.:.:.:.".:.,.,-, ,'........,.-'............,.-'..........'........-.-'.........'....,.........-..-........:...-..-.:........ .........'_.". ....,v..,._........'_........_....'..........'......-.'.-..'....................................:.,.:.,.,.'.:.:.:.:_"'_";.:.'.'1 ASSETS April 30, December 31, 2001 2000 1999 1998 1997 1996 Total current assets $359,555 $309,415 $303,238 $287,639 $259,831 $241,413 Net property and equipment 199,312 200,478 247,249 142,475 160,475 134,861 Other assets 15,250 15,750 17,250 18,750 20,250 21,750 Total assets $574,117 $525,643 $567,737 $448,864 $440,556 $398,024 Exhibit 1 JET VAC SERVICE, INC. (AN S CORPORATION) SUMMARY OF INCOME STATEMENTS FOUR MONTHS ENDED APRIL 30, 2001 AND YEARS ENDED DECEMBER 31, 2000, 1999, 1998, 1997 AND 1996 1.'.::,";':_,"_" ........;...:'........w...._".... ................................... .-.........'.:-:.:.:.:.:-...".:.._..:.:-,...:.,.;<...:.,..,-"," ...........'...'_........,_....._'...'......_...._......'...............-'_.......'...........................:...:...:.'.'.;.:.:.......:...........:.....:....-...;:.........'..... . ... ............'.....;...:...:.:.;.....,....-,-::,;.;.-.:,.,:,:,.,::.:,:::::,:,.;,...:......;.::.! April 30, December 31 , 2001 2000 1999 1998 1997 1996 Net sales $357,355 $1,264,005 $1,061,309 $1,161,600 1,110,316 $992,740 Cost of goods sold 253,447 955,681 765,066 859,398 872,318 695,710 Gross profit 103,908 308,324 296,243 302,202 237,998 297,030 Operating expenses 76,853 296,043 278,725 264,481 226,984 228,200 Operating income (loss) 27,055 12,281 17,518 37,721 11,014 68,830 Other income (expense) ---.i3,629) (3,871) 10,560 4,564 (790) 645 Net income before taxes $23,426 $8,410 $28,078_ $42,285 $10,224 $69,475 Exhibit 2 JET V AC SERVICE, INC. (AN S CORPORATION) VALUATION OF COMMON STOCK MAY 1,2001 ADJUSTMENTS TO INCOME 1,:,;.;,::,:.,::":,.;.;.;.:.,.;.,,.=:,:,::: ..-...,---.-,.,...,....'..-.-,.',..... ..........................-.-...........;.,................. '...'.'...-'.'...-.-...-.......,.:.,.:':...:.:.:.'.'.:.:.;.:.:.,.;.,.'.:.:.:.:.:.-.,.:.:.'.:.:.:.,.,.:.;.:-'--.:.'.'.:.,.:-,.;.z.,.:." ";".:-:.:-,-:,---,:-:.:.:-,.:<.:.,< .'.-.,.:.:.:.-.;.:,-.:.:.:.:-,.,.",:.;.:.;.:.,.:.:.:.,':':':"';""':'::':'::':;\ 2000 1999 1998 1997 1996 Income before income taxes (Exhibit 2) $8,410 $28,078 $42,285 $10,224 $69,475 Officers' compensation adjustment (Exhibit 4) 47,381 8,568 38,725 2,856 8,645 Excess depreciation expense 34,560 34,560 34,560 34,560 34,560 Total adjustments 81,941 43,128 73,285 37,416 43,205 Adjusted income before income taxes 90,351 71,206 115,570 47,640 112,680 Computed income taxes (18,969) (12,802) (28,322) (7,146) (27,195) Adjusted net income $71,382 $58,405 $87,248 ~0,494 $85,485 Exhibit 3 JET VAC SERVICE, INC. (AN S CORPORATION) VALUATION OF COMMON STOCK MAY 1, 2001 OFFICERS' COMPENSATION ADJUSTMENT \:,':::"-"':-'-"""" . .............................:.:.....;.:.:.:.:.:...:.:.:.:':';':':"';';"':"""1 2000 1999 1998 1997 1996 Net sales $1,264,005 $1,061,309 $1,161,600 $1,110,316 $992,740 Industry officers compensation as a percentage of sales 5.8% 7.8% 5.4% 6.3% 6.3% Normalized officers' compensation * 73,312 82,782 62,726 69,950 62,543 Jet Vac Service, Inc. officers' compensation - ** 120,693 91,350 101,451 72,806 71,188 Adjustment to income before income taxes $47,381 ~8,568 $38,725 $2,856 ~ $8,645 ** - Company's tax returns. Exhibit 4 JET VAC SERVICE, INC. (AN S CORPORATION) VALUATION OF COMMON STOCK MAY 1, 2001 COMPUTATION OF CAPITALIZATION RATE I;........,........ .......-....'...........,......:."..;.:.:.:.'-:.:-,-:.:.:.:.,-:.:.,.,-,.,.,.:.:-,".,:.".'-:.".:.,.:-:.:.:.-.,.,.".;.;.:.,.:.,.:.'.,.,.'.:.".,.:.:.:.;.:.".:.:.,.:.:.;.;.:.;.".,.,., .:.,-,.,.;.:.:.,.".:,'.-",:.-.,-,.:.;.;.,.:.,.,.,...:.'.,.:.:.....,..,-.;.:.,.:.:.,.:.,.'.:.:.;.,.:.;.;.,-:.:.:-,.,,-.'.:-,-,.:-:.:.:.:.:.'-',:.,.;.'.",:.;.:,.,.".;...:.:.:-;-,.".,,".:.:.",:.:.:.,.;. :.:.,.:.,.":'.:."-.,.:.:.:.;.:.'.:.:.:.."."-.":.;.".,,',",',1 Appraisal date long-term bond yield - * Less sustainable average compound growth rate or "G" 5.71 % (1.40) 4.31 7.80 12.11 2.60 4.00 18.71 4.00 22.71 (6.00) 16.71 1 06.00 15.76 % Horizon premium - bonds over bills - ** Normalized risk free treasury yield Equity risk premium, stocks over bonds - ** Average market return Expected micro-capitalization equity size premium Adjustments for other risk factors Discount rate for net cash flow Increment specific to net earnings Discount rate for net earnings Net earnings capitalization rate for next year Divided by "G" plus one Net earnings capitalization rate for current year * Source - U.S. Financial Data, The Federal Reserve Bank of SI. Louis, May 17, 2001 edition, thirty year treasury bond yield on May 4,2001. ** Source - Stocks, Bonds, Bills and Inflation, Ibbotson Associates 2001 Yearbook, Market results from 1926-2000 Exhibit 5 Professional Parameters ~@~ '\.""1' he American Society of Appraisers is a professional organil.ation of individuals. International in structure, it is self.supporting, unarriliated and indcpen.dent. The Society works cooperatively for the elevation of the appraisal profession. It is one of eight major appraisal societies that helped to found the Appraisal foun?ation. a nationa I sel f.n~gulatoryorganization created in 1987 to cslzbl ish unifonn qual ifie.allon criteria for professional appraisers, to develop standards for appraisal worl" and to provide other programs to serve the Public. "'The only major appraisal organiz..ation representing all of the disciplines of appraisal specialists. the Society was originated in 1936 and inconporated in 1951. It is head- quartered in suburban Washington, D.C. '\."8 . ociety members inClude specialists in business valuation, machinery and e.quip- ment, personal property (fine arts, antiques, residential conte.nts, gems and jewelry. and a variety of other subjects). real property (residential, commercial; industrial, and agricultural). and technical valuation (public utilities, industrials. natural resources, and others); in short, all types of property, tangible and intangible. re~1 or personal. "'E ach Society membef\\'ho has conclusively demonstrated that he orshe is qua I ificd to appraise one or more j,inds of property has been certified. Such cerUficaUon is predicated upon Society criteria: intensive written examinations. submission of rep- resentative appraisal reports and screening of applicant's practice and ethics. With five years or more of full-time valuation experience members are granted the right to use: the.professional designation AS'\. (Accredited Senior Appraiser). With more than tvlO years but less than five years of experience members may use the professional designation A/'l (Accredited ~lember). '\."8 enior appraisers are required to recertll)<, every five years, through a mandatory continuing education process. '\.'E thical pracUces and conduct required of Society members arc clearly defined in The Principles o{ AppraLsal Practice and Code of Ethics of Lile American Society of Appraisers." -lntcm.1lional l}o;Jrd or Governors Rc.:>olution ;:G.71../~ Rc.\i5-<:.d u.ee STATEMENT OF APPRAISER OUALIFICATIONS Overview Boles, Grove and Metzger, P.C. is a full service consulting and public accounting firm with an excellent reputation and a recognized expertise in the area of business valuation services. William B. Boles, CPA, ASA, CFP directs the Business Valuation Division of Boles, Grove and Metzger, P.C. Bill is an Accredited Senior Appraiser with the American Society of Appraisers in the business valuation area. He has over 30 years of practical experience in valuing a diverse array of business entities and types. Bill's experience combined with the experience and talents of the other members of his team, allows us to value just about any type of business. Bill's team consists of Michael W. Zelko, CPA, ABV and Brent W. Emrick, CPA, ABV, MBA, CFP. The team has valued businesses and business interests of all sizes, from small proprietorships to large corporations. We have also valued intangible assets such as goodwill, employment agreements, securities and copyrights. We have prepared merger and acquisition studies, employee stock ownership plan analysis, and other similar studies. Our work is used frequently in annual ESOP plan administration, estate and gift tax planning, buy/sell agreements, securities litigation, and marital dissolution. We have served as expert witnesses in a number of related litigation cases. Our valuation engagements include such diverse tasks as structuring and implementation of professional practice retirementlbuyouts, the determination of economic losses in deprivation of value litigation including personal injury; contract disputes and eminent domain. Our office is located at: 3601 North Front Street Harrisburg, PA 17110 Tel: (717) 238-0446 Experience: STATEMENT OF APPRAISER QUALIFICATIONS Our Company has extensive experience in the valuation of both small and large companies in a wide variety of industries. The following is a partial list of various kinds of businesses for which we have supplied business valuation services: Agricultural Entities Architectural Firms Automobile Dealerships Beer Distributors Construction Companies Dry Cleaners Environmental Engineering Firms Electrical Connector Manufacturers Financial Institutions Fuel Oil Suppliers Gasoline Service Stations Valuation Library: Law Practices Machine Shops Manufacturing Companies Medical Practices Packaging Companies Real Estate Developers Restaurants Varied Retailers Various Wholesalers Woodworking Shops Valuilll! Small Businesses and Professional Practices, First Edition, Dow Jones Irwin, Shannon P. Pratt. Valuinl!: a Business - The Analysis of Closely-Held Comllanies, Second and Third Editions, Dow Jones Irwin, Shannon P. Pratt. Handbook of Small Business Valuation Formulas and Rules of Thumb, Second and Third Editions, Valuation Press, Desmond and Marcello and Glenn Desmond, respectively. Guide to Business Valuations, Practitioners Publishing Company, Jay E. Fishman, et.a!. Financial Valuation: Business and Business Interests, Maxwell, Macmillian, et.a!. James H. Zukin. Handbook of Business Valuation, John Wiley & Sons, Inc., et.a!. Thomas L.West and Jeffrey D, Jones Federal Tax Valuation, Warren, Gorham & Lamont, John A, Bogdanski. STATEMENT OF APPRAISER QUALIFICATIONS Quantifvinl! Marketability Discounts, Peabody Publishing, LP, Z, Christopher Mercer Business Valuation Review. The Quarterly Journal of the Business Valuation Committee of the American Society of Appraisers, 1988 through present. Shannon Pratt's Business Valuation Update Online. Business Valuation ResourcesLLC, Shannon Pratt, et.a!. Cost of Capital Estimation and Applications. Shannon P. Pratt. Stocks. Bonds. Bills and Inflation. 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000 and 2001 Yearbooks, Ibbotson Associates. RMA Annnal Statement Studies. 1988 through 2001, Robert Morris Associates. Valuinl! Financial Institutions. Business One Irwin, Z. Christopher Mercer. Valuinl! Intangible Assets, McGraw Hill, Robert F. Reilly and Robert P. Schweihs. Valuation of a Closely Held Business, AlCP A, Small Business Consulting Practice Aid. IRS Valuation Guide for Iucome. Estate aud Gift Taxes, IRS Appeals Officer Valuation Training Program, Commerce Clearing House, Inc. Pratt's Stats Qnline, Business Valuation Resources, LLC. Futures. Options. and Swaps, Blackwell Publishers, Inc., Robert W. Kolb WILLIAM B. BOLES, CPA, ASA, CFP Curriculum Vitae BOLES, GROVE AND METZGER, P.c. CERTIFIED PUBLIC ACCOUNTANTS WORK EXPERIENCE: . Boles, Grove and Metzger, P.C. (Shareholder 1978 to present) <> General accounting practice, including representing and advising clients in all tax matters; business valuations, divorce and estate planning. Consulting in business valuation and litigation support services since 1978, such services include ESOP annual as well as initial valuations, board of director tender offer evaluations, estate and gift taxation matters, domestic relation issues-equitable distribution, depredation of value or income litigation, planning for buy, buy/sell agreements, valuation of intangibles, and the purchase and sale of a business, valuation of family limited partnership. . BGM Financial Associates, Ltd. (Secretary, Shareholder 1992 to present) <> Financial planning and investment management, including advising clients in all financial areas. Member ofInvestment Committee for the selection of appropriate investments for clients. . Laventhol & Horwath (Director of Tax Services 1969 to 1978) o Represented and advised various corporations, partnerships, trusts and individuals in all tax matters. . United States Internal Revenue Service (Revenue Agent, Field Audit Division 1964 to 1969) o Numerous individual and corporate tax examinations, both civil and criminal. EDUCATION AND PROFESSIONAL DESIGNATIONS . University of Drexel, Pennsylvania - Bachelor of Science . Certified Public Accountant . Senior Member of the American Society of Appraisers, Business Valuation Division . Certified Financial Planner PROFESSIONAL AND CIVIC ACTIVITIES . American Institute of Certified Public Accountants, Member o Member of Tax Division . Pennsylvania Institute of Certified Public Accountants, Member o Member, Federal Tax Committee o Chairman, Federal Tax Committee 1998-2000 o Testified on behalf of Pennsylvania Institute of Certified Public Accountants on Governance and Oversight of the IRS and Taxpayer Protection and Rights, December 10, 1997, Hearings held by Senator Santorum and U.S. Representative Goodling o Federal Tax Conference, Speaker, Valley Forge & Harrisburg, 1997 WILLIAM B. BOLES, CPA, ASA, CFP Curriculum Vitae, continued page 2 . South Central Chapter Pennsylvania Institute of Certified Public Accountants <) President 2001-2002 <) President-Elect 2000-2001 <) Vice President 1999-2000 <) Secretary 1998-1999 <) Treasurer 1997 ~ 1998 <) Past Chairman of Tax Committee <) Member of various committees such as Speakers Bureau, Legislative, Tax, Technical Meetings <) Speaker various educational seminars on tax and business valuation topics including Dauphin County Bar Association Lunch and Learn, PICPA South Central Chapter December 1997 Business Valuation Update, December 1998, 1999 and 2000 Federal Tax Update. . American Society of Appraisers, Member o Accredited as Senior Appraiser in 1992; Recertified in 1997 o International Appraisal Conference ASA, Toronto 1996 o Joint Business Valuation Conference ASAlCIBV, Montreal 1998 o International Appraisal Conference ASA, Boston 1999 o ASA Uniform Standards of Appraisal Practice, USPAP, ASA Appraisal Education Completion Certificate, 15 hour course and exam, November 1994 o ASA Uniform Standards of Appraisal Practice, USPAP, ASA Appraisal Education Completion Certificate, 15 hour course and exam, August 1999 . Hampden Township Vacancy Board o Past Member 1978-2000 . Hampden Township Industrial Development Authority o Past Chairman 1978 - 2000 . Parents Anonymous of Pennsylvania o Past Treasurer EXPERT WITNESS: . Service was provided as an expert witness with regard to valuing businesses or business interests or evaluating income form marital dissolution matters such as equitable distribution and/or spousal support; appointment of guardian for an incompetent person in Orphans Court and a business transaction litigated in Federal Court. Service was also provided for several arbitration hearings regarding business valuation disputes. Either direct testimony or depositions were provided in Dauphin, Cumberland, Lebanon, York, Lancaster, Lycoming, Mifflin and Franklin Counties. &\ ~' <. '@ % ~ '~ e CfJ -0 .s 0) c:: s::. -0 .s (/) -< to Ol c:: ~ .... ~ 0) (j) 0 (l) ~ % .~ (j) ~ '~ - (j) ~ 0 .... tn ~ 15 .~ CfJ 0 0) 0) to 0) ~ ~ 0) .... 0- '<:5 b 0- ';.l..:\ ,s c:: c:: (.) t-.. ~ c:. 0 0 Ol <' ct ,S 0 "-a ".g 0) 0 ~ -0 .~ (.) "" - 0 0 ro s::. 0) .. ~ "if, -0 (Jl M - 0 <tl :0 -0 to 0 0) c:: - ~ 0- 0> 0 ~ Ol 0 ~ <tl '0 ~ Ol <.) 0 ~ '" 0 c:: CO oS (l) ,s ~ '€ 0 '~ (j) "" ro tn '" Ol 01 "c:. ~ -0 ~ "0 (j) 0- & 0 0 5 "~ "if, .~ "'" a; 0 0) . 2:- Ol - .~ > ~ (/) '" ~ :5 ~ () ,t! 0) c:: <l: "'* c s::. c:: "@ ~ ~ c Ol l- S to ct 0) 01 Ol ;: ro ~ () "0 :E. - d> S 0) - <.) () c 0 0) ~ ~ 01 ~ 0) :5 0) .c (j) E "0 ,s ,s ~ (l) <. ~ ,2? CI: b -. E (j) 0.. "S 0) s::. -.::=- ~ > "0 .a:. 1-4 to .~ 0> 0 0) (l) ~ '0 () .B ~ ~ 0 <1l <tl ,'!2 .c ~ CJl Ol c:: - Ol l- s::. (j) "E <1l c:: 1-4 -0 ro -0 0) c:: <l: 0) ~ Ol .0 ~ MICHAEL W. ZELKO, CPA, ABV Curriculum Vitae BOLES, GROVE AND METZGER, P.c. CERTIFIED PUBLIC ACCOUNTANTS WORK EXPERIENCE: . Boles, Grove and Metzger, P.C. (Professional staff, 1987 to 1991, Senior 1991 to 1995, Supervisor of Business Valuation Department 1997 to present) o General accounting practice, including audit, review and compilation procedures for corporations, local governments and non-profit organizations. Preparation and review of corporate, partnership, individual and fiduciary tax returns, and corporate and personal income tax planning, preparation of business valuations for Employee Stock Ownership Plans, mergers and acquisitions, divorce, and estate and gift t ax issues, and management advisory services. . BGM Financial Associates, Ltd. (Supervisor, 1996 to 1999, Shareholder, 2000) o Financial planning and investment management, including serving on the Investment Committee for the selection of appropriate investments for clients in all planning areas . Villa Teresa (Controller 1995 to 1996) o Responsible for all financial affairs of 184 bed nursing home, including managing accounting staff, preparation of financial statements, filing appropriate tax forms with federal and state taxing bureaus, preparation of Medicare and Medicaid cost reports, management of pension plan and investments. EDUCATION AND PROFESSIONAL DESIGNATIONS . York College of Pennsylvania, Bachelor of Science, 1987 . Certified Public Accountant, 1992 . Accredited in Business Valuation by the American Institute of Certified Public Accountants, 1999 PROFESSIONAL AND CIVIC ACTIVITIES . American Institute of Certified Public Accountants, Member since 1992 . Pennsylvania Institute of Certified Public Accountants, Member since 1992 . Speaker and organizer for continued education programs presented by Boles, Grove and Metzger, P.C. as an approves sponsor by the Pennsylvania State Board of Accountancy. . Chairman Business Valuation Committee o South Central Chapter, Pennsylvania Institute of Certified Public Accountants, 1997 . Treasurer Lawton Athletic Association BRENT W. EMRICK, CPA/ABV, CFP Curriculum Vitae BOLES, GROVE AND METZGER, P.C. CERTIFIED PUBLIC ACCOUNTANTS PROFESSIONAL EXPERIENCE: . Boles, Grove and Metzger, P.C. (Shareholder 1989, Manager 1986, Supervisor 1983, Staff Accountant 1980) <> General accounting practice, including representing and advising clients in all tax matters; business valuations, financial and estate planning. . BGM Financial Associates, Ltd. (President, Shareholder 1992 to present) <> Financial planning and investment management. Advises clients in all planning areas. . Walter Fry, CPA (Staff Accountant 1977 to 1980) <> Bookkeeping, [mancial statement preparation, tax return preparation, including corporations, individuals and fiduciary. . Dauphin Deposit Bank (Trust Department, 1975 - 1977) <> Administrator of estates and trusts, preparation of Pennsylvania inheritance tax, federal estate tax and fiduciary income tax returns. EDUCATION AND PROFESSIONAL DESIGNATIONS . Penn State University, Middletown, Pennsylvania - Master of Administration, Business . Penn State University, Middletown, Pennsylvania - Bachelor of Business . Harrisburg Area Community College, Harrisburg, Pennsylvania - Associate In Arts . Certified Public Accountant . Certified Financial Planner . Accredited in Business Valuation by the American Institute of Certified Public Accountants PROFESSIONAL AND CIVIC ACTIVITIES . American Institute of Certified Public Accountants, Member . Pennsylvania Institute of Certified Public Accountants, Member <) Personal Financial Planning Committee <) Legislation Committee <) Budget and Finance Committee <) Past President - South Central Chapter . Summerda1e P A Community Federal Credit Union - Treasurer . Estate Planning Council of Central Pennsylvania - Past President . Hemlock Girl Scout Council- Former Treasurer . Boy Scout Troop 89 - Former Scout Master . Speaker and panel discussion participant for tax and financial planning seminars presented to professional organizations and the general public. . Speaker and organizer for continued education programs presented by Boles, Grove and Metzger as an approved sponsor by the Pennsylvania State Board of Accountancy. ~Orm .1 :120, . .< 'l!,lS;.dofP<;:r?!'ion Incom& Tax Return OMS No. 1545-0123 For calel1dar year 1~"7 or tiul ~'beglnnlng l ,19_,endlng ,1Q_ 1997 Department Of the Treasury _" '1,,:,' l-l J " Internal Revenue Service ~ t A Check if a: Use Name B Employer identification number 1 Consolidated return D IRS JET VAC SERVICE AND EOUIPMENT INC 23-1914288 (attach FormSS1) D label. C 2 Personal holding co. Other- Number, street, and room or suite no. (If a P.O. box, see page 5 of instructions.) Date Incorporated (attachSch. PH) wise, THREE LONG LANE 12/04/1973 3 Personal service corp,O please D (as defined In Temp. p;i~oe City or town, state, and ZIP code Total assets (sea page 5 of Regs. sec. 1.441-41') ,>1> 17nc:c: Instructions) or e. E Check apolicable boxes: (1\ I I Initial return (2) D Final return (3\ I I Change of address $ 441 627. 1 a Gross receipts or sales I 1 110 316 .1 b less returns and allowances I Ie Bal ~ 1e 1 110 316. 2 Cost of goods sold (Schedule A, line B) ............................. ........................... 2 815 698. 3 Gross profit Subtract line 2 from line 1c ........................ .............................................................. 3 294 618. 4 Dividends (Schedule C, line 19) ... .......................... ................................. 4 ~ 5 Interest ..... ...... ....................... ........... .......................................................................... 5 E 6 Gross rents 6 0 ......................... .................................................................... ........ ............... ............... u 7 Gross royalties 7 .E .......................... .................................................. B Capital gain net income (attach Schedule 0 (Form 1120)) 8 9 Net gain or (loss) from Form 4797, Part II, line 18 (attach Form 4797) ........................................ 9 10 Other income (attach schedule) ...... ....................... ..... .........S.J;:J;: .STb'rJ;:l1EN'r .J ....... 10 5 779. 11 Total income. Add lines 3 throunh 10 ~ 11 300 397. 12 Compensation of officers (Schedule E, line 4) ........................................................... ............ ........... 12 72 806. 13 Salaries and wages (less employment credits) 13 54 972. 14 Repairs and maintenance ................................. .............................. 14 4 446. 15 Bad debts ................. ................................................. 15 16 Rents .................................................... ................................................................................. 16 22 800. 17 Taxes and licenses .............. ..................................... ................... SJ;:E .ST.1\.'rJ;:l1EN'r ..4.. 17 17 490. 18 Interest ........... ........................... ............. .......................... ............................... 18 13 785. 19 Charitable contributions SJ;:J;: .S'rb';J;'J;:l1J;:N'r ..3 .....Am>. SEE STATEMENT 4 ....... 19 1 352. 0 ................r."2o.1.................44 ~ 20 Depreciation (attach Form 4562) 438. 0 ............. " 21 Less depreciation claimed on Schedule A and elsewhere on return 21a I 21b 44 438. u .......... " "0 22 Depletion 22 ~ ............................................................................. .......... ................................. ......... 0 23 Advertising 23 828. ... ..... ..... ................ ...................................................................... .................. ......... ...... 24 Pension, profit.sharing, etc., plans ................... ..................... 24 25 Employee benefit programs ............ ...... ..................... .................. ... ................................... ......... 25 26 Other deductions (attach schedule) ........... .... ..... . .........SJ;:E .S'l'b'l'J;:MJ;:N'l' .5. .... 26 49 559. 27 Total deductions. Add lines 12 through 26 .......................... ................ ....... ............ ..... ....... ...... ~ 27 282 476. 28 Taxable Income before net operating loss deduction and special deductions. Subtract line 27 from linel11 I.... ..... ............... ........ 28 17 921. 29 Less: a Net operating loss deduction .............. ... .... .... .... .... .... ... ... ..... ......... 29a " b Snecial deduction' 'Schedule C line 20' 29b I 2ge 30 Taxable income. Subtract line 29c from line 2B ...... ........................................................ ............... ....... 30 17 921. 31 Total tax (Schedule J, line 10) ., 31 2 688. Payments: a 1996 overpayment 0 32 creditlildto 1997 ...................... 32a C b 1997 estimated tax payments ...... 32b 5 280. ~ less 1997 refund applied for E C on Form 4466 32. d Bal ~ 32d 5 280. '" ~ e Tax deposited wifh Form 7004 32e 3 000. e.. ...................... ................. "0 f Credit for tax paid on undistributed capital gains (attach Form 2439) 32f ~ ................ ~ ~ g Credit for Federal tax on fuels (attach Form 4136) ...... 32g 32h 8 280. ~ >- 33 Estimated tax penalty. Check if Form 2220 is attached ~D 33 ..... ..................... 34 Tax due. If line 32h is smaller than the total of lines 31 and 33, enter amount owed ........................ ................... 34 O. 35 Overpayment. If line 32h is larger than the total of lines 31 and 33, enter amount overpaid ............... ......... ........... 35 5 592. 36 Enter amount of line 35 vou want Credited to 1998 estimated tax ~ 2 720. Refunded ~ 36 2 872. Under penalties of perjury, I declare thatl have examined this return, Including accompanying schedules and statements, and to the best of my knowledge and beliel, it is tnJe, Sign correct, arid complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here ~ Signature of officer I ~TItJe Date Paid Preparer's ~ I Dale I Check if ] I Preparer's apeial se(::urity number signature sell-employed D 178383454 Pre- parer's Firm's name ~WAGGONER, FRUTIGER & DAUB I EIN ~ 23 1583249 (or yours if Use self-employed) 5006 E TRINDLE RD SUITE 200 I ZIP code ~ 17050 3649 Dniy and address MECHANICS BURG PA ~~:1eg-~7 JWA 15140124 706230 33100 102 1 JET VAC SERVICE AND EQUIPMENT 33100 2 Fom11120 (1997) JET VAC SERVICE AND EOUIPMENT INC 23-1914288 Paoe 2 ISche'dule AI' Cost of Goods Sold ISee oaoe 10 of instructions.) 1 Inventory at beginning of year ........... ..... ............................ ........ ........................ .......... ....................-. 1 15 788. 2 Purchases ...... ................................................................................................. ...... 2 119 193. 3 Cost of labor ............................. ...................... ............ ................................... 3 279 291. 4 Additional section 263A costs (attach schedule) ........... ............. ............................... 4 5 Other costs (attach schedule) ................... .... ........................SEE ..STATEMENT ...6 ........................ 5 414 098 . 6 Total. Add lines 1 through 5 .......... ........................ ............ ................................ ...... 6 828 370. 7 Inventory at end of year .............................. ........... .......... ....... .... ......................... 7 12 672. 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 ... ... ........... ............... 8 815 698. 9 a Check all methods used for valuing closing inventory: (i) [X] Cost as described in Regulations section 1.471-3 (ii) 0 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 writedown of subnormal goods as described in Regulations section 1.471-2{c) ...... .............. ... ... ..... ..... ...... ... ........ e Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) ... .... ..... .......... ........ ........ ..... ...... d If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing inventory computed under LIFO e If property is produced or acquired for resale, do the rules of section 263A apply to the corporation? Was there any change in determining quantities, cost, or valuations between opening and closing inventory? ~D ~D w D D Yes [X] No If "Yes: attach exnlanation ......................................... Yes No ISchedllleC I Dividends and Special Deductions (a) Dividends (b) % (e) Special deductions received lat x Ibt 1 Dividends from less-than-20%~owned domestic corporations that are subject to the 70% deduction (other than debt-financed stock) ....................... ..................... ........ 70 2 Dividends from 20%~or-more-owned domestic corporations that are subject to the 80% deduction (other than debt-financed stock) 80 ... 3 Dividends on debt-financed stock of domestlc and foreign corporations (section 246A) instructions 4 DIvidends on certain preferred stock of less-than-20%-ownecl public utilities ............. ....... 42 5 DIvidends on certain preferred stock of 20%-or-more-ownecl public utilities 48 6 Dividends from less-than-20%-owned foreign corporations and certain FSCs that are subject to the 70% deduction. 70 7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs that are subject to the 80% deduction ........... .................... ............................. ............ 80 8 Dividends from wholly owned foreign subsidiaries subject to the 100 100% deduction (section 245(b)) ............................ ................ .................... ......... 9 Total. Add lines 1 through 8 -- .. ....... ........... ........................ ..... ................... 10 Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 ............... .......... 100 11 Dividends from certain FSCs that are subJect to the 100% deduction (section 245(cX1)) .... 100 12 Dividends from affiliated group members subject to the 100% deduction (sec. 243(aX3)) ... 100 13 Other dividends from foreign corporations not Included on lines 3, e, 7, 8, or 11 ... ............. 14 Income from controlled fcreign cOl'porations under subpart F (attach Form{s) 5471) .. 15 Foreign dividend gross-up (section 78) ............ ....... ...................................... 16 IC -DISC and former DISC dividends not included on iines 1, 2, or 3 (section 246(d)) 17 Other dividends ............................................................................................ 18 Deduction for dividends paid on certain preferred stock of public utilities. ....... .... 19 Total dividends. Add lines 1 through 17. Enter here and on line 4, page 1 ........... ... ~ 20 Total snecial deductions. Add lines 9 10 11 12 and 18. Enter here and on line 29b nane 1 ~ I Schedule E I Comoensation of Officers Complete Schedule E onlv if total receipts (Ijne 1a "'Ius lines 4throu~h 10 on ~age1, Form 1120\ are $500,000 Of more. (C) Percent Percent of corporation (a) Name of officer (b) Social security of time stock owned (f) Amountof number devoted . Id\Common Ile\Preferred compensation to business 1 ZORA BOWMAN 187-16-6525 100 59.00% 26 000. STEVE BOWMAN 187-36-7751 100 41. 00% 46 806. 2 Total compensation of officers 72 806. 3 Compensation of officers claimed on Schedule A and elsewhere on return 4 Subtract line 3 from line 2. Enter the result here and on line 12. oaoe 1 72 806. [X] 711811 03-12-98 15140124 706230 33100 102 2 JET VAC SERVICE AND EQUIPMENT 33100 2 Form 112011997\ ,TET VAC SERVICE AND EClUIPMENT INC 23 1914288 Pane 3 fSclulld"leJ T . Tax Com""tation ISee nane 12 of instructions.) 1 Check if the corporation is a member of a controlled group (see sections 1561 and 1563) ~O Important Members of a controlled group, see instructions on page 12. 2a If the box on line' is cheeked, enter the corporation's share of the $.50,000, $25,000, and $9,925,000 taxable Income brackets (in that order): (1) 1$ I (2) 1$ I (3) 1$ I ... b Enter the corporation's share at (1) Additional 5% tax (not more than $11,750) 1$ I (2) Additional 3% fax (not more than $100,000) $ SEE STATEMENT 7 3 Income tax. Check this box if the corporation is a qualified personal service corporation as defined in section 448(d)(2) ..... (see instructions) .................... ................ ................................................. ........ ............. ~O . 2 688. 4a Foreign tax credit (attach Form 1118) ..... ...... .......... 4a ; b Possessions tax credit (attach Form 5735) ............ .................. ............ .................. 4b c Check: 0 Nonconventional source fuel credit o QEV credit(attach Form 8834) 4c d General business credit Enter here and check which forms are attached: 03800 ...... I D "" 0 5884 0 6478 0 6765 0 6586 08630 08826 D 8835 0 "44 0 "45 0 8846 D "'0 08647 0"" 4d e Credit for prior year minimum tax (attach Form 8827) 4e 5 Total credits. Add lines 4a through 4e ......... ................ 5 6 Subtract line 5 from line 3 .... ........................................................... 6 2 688. 7 Personal holding company tax (attach Schedule PH (Form 1120)) .... ...... 7 8 Recapture taxes. Check if from: 0 Form 4255 0 Form 8611 ............ ................................ 8 9 Alternative minimum tax (attach Form 4626) ......... ..... ......................... ...... 9 10 Total tax. Add lines 6 throu"h 9. Enter here and.~~ii~;3.;..;~;~; 10 2 688. r Schecl"leKT Other Information ISee oaae 14 of instructions.) 1 Check method of accounting: a D Cash b CXJ Accrual Yes No 7 Was the corporation a U.S. shareholder of any controlled Yes No c D Other (specify) ~ foreign corporation? (See sections 951 and 957.) X 2 See page 16 of the instructions and state the principal: If "Yes," attach Form 5471 for each such corporation. a Business activity code no. .... 7389 Enter number of Forms 5471 attached ~ b BusinessactTvity .... SALES AND SERVICE 8 At any time during the 1997 calendar year, did the corporation C Product or service .... EQUIP SALES & MAINT have an interest in or a signature or other authority over a 3 At the end of the tax year, did the corporation own, financial account (such as a bank account, securities directly or indirectly, 50% or more of the voting stock of account, or other financial account) in a foreign country? X a domestic corporation? (For rules of attribution, see If "Yes; the corporation may have to file Form TO F 90-22.1. section 267(c).) ............................. ..... X If ''Yes: enter name of foreign country ~ If "Yes; attach a schedule showing: (a) name and 9 During the tax year, did the corporation receive a distribution identifying number, (b) percentage owned, and (c) from, or was it the grantor of, or transferor to, a foreign trust? taxable income or (loss) before NOL and special . If "Yes," see page 15 of the instructions for other forms the deductions of such corporation for the tax year ending corporation may have to file .... .......... .................. ............. X with or within your tax year. 4 Is the corporation a subsidiary in an affiliated group or a 10 At any time during the tax year, did one foreign person own, parent-subsidiary controlled group? ....................... X directly or indirectly, at least 25% ot (a) the total voting power of all classes of stock of the corporation entitled to vote, or (b) If ''Yes,' enter employer identification number and name of the total value of all classes of stock of the corporation? the parent corporation .... If"Yes; X a Enter percentage owned .... 5 At the end of the year, did any individual, partnership, b Enter owner's country .... corporation, estate or trust own, directly or indirectly, c The corporation may have to file Form 5472. Enter number of 50% or more of the corporation's voting stock? (For rules Forms 5472 attached ~ of attribution, see section 267(c).) .... $r1\,r:E:A<!:E:Nr. ..8. X 11 Check this box if the corporation issued publicly offered debt instruments with original issue discount. ~O If ''Yes," attach a schedule showing name and identifying If so, the corporation may have to file Form 8281. number. (Do not include any information already entered in 12 Enter the amount of tax-exempt interest received or accrued 4 above.) Enter percentage owned ~ 59.00 during the tax year ~ $ 6 During this tax year, did the corporation pay dividends (other 13 If there were 35 or fewer shareholders at the end of the than stock dividends and distributions in exchange for tax year, enter the number .... 2 stock) in excess of the corporation's current and accumulated 14 It the corporation has an NOl for the tax year and is electing earnings and profits? (See sees. 301 and 316.) X to forego the carryback period, cheek here ~ 0 If ''Yes,' file Form 5452. If this is a consolidated return, 15 Enter the available NOL carryover from prior tax answer here for the parent corporation and on Form 851, years (Do not reduce it by any deduction on line Affiliations Schedule, for each subsidiarv. 29a.\ ~ . 7'1021 03-12-ga 15140124 706230 33100 102 3 JET VAC SERVICE AND EQUIPMENT 33100 2 Form 1120 119971 JET VAC SERVICE AND EOUIPMENT INC 23 1914288 Page 4 rSch'ildule L .!'Balance Sheets Del Book. Beginning of tax year End of tax year Assets la' Ibl Ic' 'dl 1 Cash 93 905. ... 58 139. 2a Trade notes and accounts receivable 128 524. 184 285. b Less allowance for bad debts I 128 524. , 184 285. 3 Inventories . 15 788. 12 672. 4 U.S. government obligations ... 5 Tax.exempt securities .................... .... 6 Other current assets nSTMT n~L 4 000. 5 806. 7 Loans to stockholders .......................... .. 8 Mortgage and real estate loans ............ ... 9 other investments 10a Buildings and other depreciable assets ... 1 083 313. 1 168 278.J .... b Less accumulated depreciation II 948 452 134 86l. , 1 007 803 160 475. ..... 11a Depletable assets .. b Less accumulated depletion ..... II , 12 Land (net of any amort~ation) . .......... 13a Intangible assets (amortizable only) .. b Less accumulated amortization II , 14 Other assets n.n..n.8.TM.T. J,.O ..... 21 750. 20 250. 15 Total assets 398 828. 441 627. Liabilities and Stockholders' Equity ... ... 1 .... 16 Accounts payable 18 530. ...1 70 899. ..... 17 Mortgages, notes, bonds payable in less than 1 year ...... 11 31l. .. 37 833. 18 Other current liabilities ......STMT...ll 25 506. 6 874. 19 Loans from stockholders ....... ... 60 983. 45 483. 20 Mortgages, notes, bonds payable in 1 year or more < 18 502. ..... 10 796. 21 Other liabilities.. ... ....... n.STMT...12 8 06l. ... 5 832. 22 Capital stock: a Preferred stock. .. . <.... ...... .. < b Common stock .............. 14 60l. 14 60l. 14 60l. 14 60l. 23 Additional paid.in capital..... ...... 24 Retalned earnings . ApproprIated (attach schedule) 25 Retained earnings. Unappropriated 241 334. 249 309. 26 Adjustmsnls 10 shareholders' equity 27 Less cost of treasury stock ........ ...........,. I I , 28 Total liabilities and stockholders' enuitv.... .. 398 828. 441 627. Note: You are not required to complete Schedules M,1 and M-2 below if the total assets on line 15, column (d) of Schedule L are less than <25 000. IScheduleM-1! Reconciliation of Income (Loss) per Books With Income per Return 1 Net income (loss) per books 7 975. 7 Income recorded on books this year not 2 Federal income tax . .................... 2 688. included on this return (itemize): 3 Excess of capital losses over capital gains Tax-exempt interest $ 4 Income subject to tax nol recorded on books this year STMT 13 948. (itemize): 948. 8 Deductions on this return not charged 5 Expenses recorded on books this year not against book income this year (itemize): deducted on this return (itemize): a Depreciation $ a Depreciation ..... $ 14.913. b Contributions $ carryover .... b Contributions $ STMT 14 6.707. carryover .... Travel and $ 6 707. C entertainment 14 913. 9 Add lines 7 and 8 7 655. 6 Add lines 1 throu'h 5 25 576. 10 Income lline 28 'a~~1;~ii;~6i;;~II;~9 17 92l. I S.cheduleM-2 I Analvsis of Unappropriated Retained Earninas per Books lLine 25, Schedule L) 1 Balance at beginning of year ... 241 334. 5 Distributions: a Cash 2 Net income (loss) per books 7 975. b Stock 3 Other increases (itemize): c Property 6 Other decreases (itemize): 7 Add lines 5 and 6 ...... 4 Add lines 1 2 and 3 . 249 309. 8 Balance at end of vear 'line 4 less line 7\ ,. 249 309. 711631 03-12-96 15140124 706230 33100 4 102 JET VAC SERVICE AND EQUIPMENT 33100 2 4562 Depreciation and Amortization OMS No. 1545-0172 Form 1997 (Including Information on listed Property) OTHER Department of the Treasury .... Attach this form to your return. Attachment IntemalRevenueService Sequence No. 67 Name(s) shewn on return Business Of activity to which this form relates Identifying number JET VAC SERVICE AND EOUIPMENT INC bTHER DEPRECIATION 23 1914288 1 Partll Election To Expense Certain Tangible Property (Section 179)(Note: If you have any 'listed property,"complete Part V before you complete Part I.l 1 Maximum dollar limitation. If an enterprise zone business, see instructions 1 18 000. ................. ................. ............... ..... 2 Total cost of section 179 property placed in service 2 84 966. ................................. ................... .... ...................... ......,.. 3 Threshold cost of section 179 property before reduction in limitation ............................. 3 $200,000 ... ................ ...... ......... 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter .0- 4 o . ............. .... ...................... ............... 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing seoaratel\l see instructions ........................ ....... .................... .... ..................... ................. ........................ 5 18 000. 6 (a) Descrlpt!on of property (b) Cost (business use only) (c)Eleeted cost I... ..... ... 7 Listed property. Enter amount from line 27..................... ............................................ I 7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7....... ......................... ........ 8 9 Tentative deduction. Enter the smaller of line 5 or line 8 ................................ ............. ..................... ...... ........ g 10 Carryover of disallowed deduction from 1996 ................................. ................ ................ ......................... 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 .. .................. 11 18 000. 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 .. .......... .... 12 13 Carryover of disallowed deduction to 1998. Add lines 9 and 10, less line 12 ......... .. ~I;~(HH Note: Do not use Part /I or Part 11/ 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. I Parrll I MACRS Depreciation For Assets Placed in Service ONLY During Your 1997 Tax Year (Do Not Include Listed Property.) Section A. General Asset Account Election 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 instructions . ......... ......... ... ............ ...... ........ .......... ...... ...... ... ............ ... ... ............... ... ............ ................. ... D Section B w General Depreciation System (GOB) (See instructions.) (b) Month and (c) Basis for depreciation (d)Reoovery (a) Classification 01 property year placed (businessllnvestmentuse period (e) Convention (f)Me1:hod (g) Depreciation deductIon in service only - see instructions) 15 a 3-vear orooertv > b 5-vear nronertv 84 966. 5 YRS HY 200Dl' 16 995. c 7-vear croce"" d 1 O.vear orooertv e 15-vear orooertv f 20-vear orooertv n 25.vear nronertv 1< 25vrs. S/L / 27.5 vrs. MM S/L h Residential rental property 27.5 vrs. MM S/L / Nonresidential real property / MM S/L i S/L / MM Section C ~ AJternative Depreciation System (ADS) (See instructions.) 16 a Class life S/L b 12-vear 12 vrs. S/L c 40-year / 40 yrs. MM S/L 1 Part 11I1 Other Depreciation (Do Not Include Listed Property.) (See instructions.) 17 GOS and ADS deductions for assets placed in service in tax years beginning before 1997 ..... ..... ............ ........ 17 22 248. 18 Property subject to section 168(f)(1) election .......... ...................... .... ...... ...................... ...... ...... ....... 18 19 ACRS and other depreciation .......................................... .................... ......................... ......................... ..... 19 1 568. I Part IvI Summary (See instructions.) 20 Listed property. Enter amount from line 26 ..... .................. .............. .................. ..... ................. ......... ......... 20 3 627. 21 Total. Add deductions on line 12, Jines 15 and 16 in column (g), and lines 17 through 20. Enter here and on the appropriate lines of your return. Partnerships and S corporations - see instructions ........................ 21 44 438. 22 For assets shown above and placed in service during the current year, enter the I I aortion of the basis attributable to section 263A costs ....... ................................... .... 22 LHA For Paperwork Reduction Act Notice, see the separate instructions. 5 JET VAC Form 4562 (1 997) 716251 03-12-98 15140124 706230 33100 102 SERVICE AND EQUIPMENT 33100 2 1997 JET )lAC SERVICE AND E UIPMENT INC 23 1914288 Page 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 of Section B, and Section C if applicable. Section A ~ Depreciation and Other Information (Caution: See instructions for limits for passanger automobiles) 23a Do you have evidence to support the business/investment use claimed? [X] Yes DNo 23blf "Yes" is the evidence written? [X] Yes D No (a) (b) Date (e) (d) (e) (f) (g) (h) (i) Type at property placed in Business! Cost or Basis for depreciation Recovery Method! Depreciation Elected (list vehicles first) service investment other basis (businesslinvestment period Convention deduction section 179 use percentage use only) cost 24 pronertv used more than 50% in a I'luaJified business use: FORD EXPLORER 101294 % 26 511- 5 InDB-HY 3 627. % % % 25 pronertv used 500.16 or less in a aualified business use: % S/L- " % S/L- % S/L- % S/L- 26 Add amounts in column (h). Enter the total here and on line 20, page 1 I 26 3 627. .,., ,.., ........... -- ............ ....... ..... ............ 27 Add amounts in column (i). Enter the total here and on line 7, page 1 ............... -- .................. ..... ..... .......... _______.__.__.__._ 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," 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. (a) (b) Ce) (d) (e) (f) 28 Total business/investment miles driven during the Vehicle Vehicle Vehicle Vehicle Vehicle Vehicle year (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. ~dd lines 28 through 30..... ................ ............. Yes No Yes No Yes No Yes No Yes No Yes No 32 Was the vehicle available for personal use during off-duty hours? .................................. X 33 Was the vehicle used primarily by a more than 5% owner or related person? .................. X 34 Is another vehicle available for personal use? ...... ......................... ............. ............... X Section C . Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons. Yes No 35 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by your employees? .......... .................................... .......................................... ...... ............... ........... ..... .......... ......... .......... ............ X 36 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See instructions for vehicles used by corporate officers, directors, or 1% or more owners ........ ............ ..... .............. X 37 Do you treat all use of vehicles by employees as personal use? ................ ...................... ................. ......... ....... .... ........ ......... X 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? ......... ............... ........ .................... ....................... ........... ............. X 39 Do you meet the requirements concerning qualified automobile demonstration use? ............................. .......... ................... .... X Note: If your answer to 35, 36, 37, 38, or 39 is DYes," you need not complete Section B for the covered vehicles. 1 Part VI 1 Amortization Ca) I (b) Ce) Cd) (e) (f) OeSCl"iplionofcosls Dale amortization Amortizable Code Amortization Amortization begins amount section period or percentage fOl"lhisyear 40 Amortization of costs that begins during your 1997 tax year: LIFE LINE SYSTEM 1070196 22 500. 15 YRS 1 500. 1 41 Amortization of costs that began before 1997 ..... ........................ ............ ........................... 1 41 .......................... 42 Total. Enter here and on "Other Deductions" or "Other Expenses" line of your return ......... .................... ____.______ I 42 1 500. 716252 03.12-118 15140124 706230 33100 102 6 JET VAC SERVICE AND EQUIPMENT 33100 2 JET VAC SERVICE AND EQUIPMENT INC 23-1914288 FORM 1120 OTHER INCOME STATEMENT 1 DESCRIPTION AMOUNT MISCELLANEOUS TOTAL TO FORM 1120, LINE 10 5,779. 5,779. FORM 1120 TAXES AND LICENSES STATEMENT 2 DESCRIPTION AMOUNT PAYROLL TAXES REAL ESTATE TAXES PENNSYLVANIA TAXES - OTHER TOTAL TO FORM 1120, LINE 17 12,271. 2,828. 2,391. 17,490. CURRENT YEAR CONTRIBUTIONS STATEMENT 3 DESCRIPTION AMOUNT MISCELLANEOUS TOTAL CURRENT YEAR CONTRIBUTIONS 1,352. 1,352. 15140124 706230 33100 7 STATEMENT(S) 1, 2, 3 102 JET VAC SERVICE AND EQUIPMENT 33100 2 JET VAC SE~VICE AND EQUIPMENT INC 23-1914288 CONTRIBUTIONS STATEMENT 4 CARRYOVER OF PRIOR YEARS UNUSED CONTRIBUTIONS FOR TAX YEAR 1992 FOR TAX YEAR 1993 FOR TAX YEAR 1994 FOR TAX YEAR 1995 FOR TAX YEAR 1996 TOTAL CARRYOVER TOTAL CURRENT YEAR CONTRIBUTIONS TOTAL CONTRIBUTIONS 10% OF TAXABLE INCOME AS ADJUSTED 1,352 1,352 1,927 o 1,352 EXCESS CONTRIBUTIONS ALLOWABLE CONTRIBUTIONS DEDUCTION 15140124 706230 33100 8 STATEMENT(S) 4 102 JET VAC SERVICE AND EQUIPMENT 33100 2 JET VAC SE~VICE AND EQUIPMENT INC 23-1914288 FORM 1120 OTHER DEDUCTIONS STATEMENT 5 DESCRIPTION AMOUNT AMORTIZATION AUTO AND TRUCK EXPENSE LEGAL AND ACCOUNTING UTILITIES OFFICE EXPENSE DUES AND SUBSCRIPTIONS MISCELLANEOUS TRAVEL AND ENTERTAINMENT PROFIT SHARING PLAN FEE TOTAL TO FORM 1120, LINE 26 1,500. 5,568. 3,300. 15,183. 7,252. 2,223. 2,952. 10,381. 1,200. 49,559. SCHEDULE A COST OF GOODS SOLD - OTHER COSTS STATEMENT 6 DESCRIPTION AMOUNT SUBCONTRACTS PARTS AND SUPPLIES VEHICLE EXPENSE INSURANCE REPAIRS AND MAINTENANCE TAXES AND LICENSES TOTAL TO SCHEDULE A, LINE 5 147,429. 74,594. 44,180. 101,668. 15,758. 30,469. 414,098. 15140124 706230 33100 9 STATEMENT(S) 5, 6 102 JET VAC SERVICE AND EQUIPMENT 33100 2 JET VAC SERVICE AND EQUIPMENT INC 23-1914288 OTHER INFORMATION 50% OR MORE OF VOTING STOCKS OWNED BY 8 STATEMENT (A) NAME ADDRESS IDENTIFYING NUMBER (B) PERCENT OF STOCK ZORA BOWMAN EAST BERLIN, PA 17316 187-16-6525 59.00% SCHEDULE L OTHER CURRENT ASSETS 9 STATEMENT DESCRIPTION BEGINNING OF TAX YEAR PREPAID EXPENSE NOTE RECEIVABLE - BOCA FEDERAL PREPAID TAXES 2,000. 2,000. TOTAL TO SCHEDULE L, LINE 6 4,000. END OF TAX YEAR 1,214. 2,000. 2,592. 5,806. SCHEDULE L OTHER ASSETS STATEMENT 10 DESCRIPTION BEGINNING OF TAX YEAR LIFE LINE SYSTEM 21,750. TOTAL TO SCHEDULE L, LINE 14 21,750. END OF TAX YEAR 20,250. 20,250. SCHEDULE L OTHER CURRENT LIABILITIES STATEMENT 11 DESCRIPTION BEGINNING OF TAX YEAR PAYROLL TAXES WITHHELD & ACCRUED ACCRUED WAGES & COMMISSION ACCRUED INTEREST SALES TAX PAYABLE ACCRUED PROFIT SHARING PAYROLL WITHHELD - MISCELLANEOUS FEDERAL ACCRUED TAXES STATE ACCRUED TAXES 1,274. 6,448. 5,644. 100. 10,000. 749. 1,291. TOTAL TO SCHEDULE L, LINE 18 25,506. END OF TAX YEAR 2,047. 2,063. 478. 63. 1,152. o. 1,071. 6,874. 15140124 706230 33100 11 STATEMENT(S) 8, 9, 10, 11 102 JET VAC SERVICE AND EQUIPMENT 33100 2 JET .VAC SERVICE AND EQUIPMENT INC 23-1914288 SCHEDULE L OTHER LIABILITIES STATEMENT 12 DESCRIPTION BEGINNING OF TAX YEAR DEFERRED CORPORATE TAX 8,061. TOTAL TO SCHEDULE L, LINE 21 8,061. END OF TAX YEAR 5,832. 5,832. SCHEDULE M-1 STATEMENT 13 OTHER INCOME RECORDED ON BOOKS NOT INCLUDED IN THIS RETURN DESCRIPTION TAX BENEFIT FROM NOL CARRY FORWARD TOTAL TO SCHEDULE M-1, LINE 7 AMOUNT 948. 948. SCHEDULE M-1 OTHER DEDUCTIONS IN THIS RETURN NOT CHARGED AGAINST BOOK INCOME STATEMENT 14 DESCRIPTION DEFERRED INCOME TAX INTEREST ACCRUED TO SHAREHOLDERS TOTAL TO SCHEDULE M-1, LINE 8 AMOUNT 1,281. 5,426. 6,707. 15140124 706230 33100 12 STATEMENT(S) 12, 13, 14 102 JET VAC SERVICE AND EQUIPMENT 33100 2 F~m 7004 Application for Automatic Extension of Time To File Corporation Income Tax Return OMS No. 1545-0233 (Rev. July 1QQ7) Department of the Treasury Internal Revenue Selvice Name of corporation Employer identification number INC 23-1914288 D D D Form 1120-F5C Form 1120-H Form 1120-L D D D Form 1120-ND Form 1120-PC Form 1120-POL D Form 1120-AEIT D Form 1120-AIC D Form 11205 D Form 1120-5F D Form 990-C D Form 990-T Form 1120-F lilers: Check here if you do not have an office or place of business in the United States ......................~D 1a I request an automatic 6-month (or, for certain foreign corporations, 3-month) extension of time until SEPTEMBER 15, 1998 ,to file the income tax return of the corporation named above tor year 19 97 or ~ D tax year beginning ,19 . and ending If this tax year is for less than 12 months, check reason: D Initial return D Final return ~ [X] calendar .19 b D Change in accounting period D Consolidated return to be filed 2 If this application also covers subsidiaries to be included in a consolidated return, complete the following: Name and address of each member of the affiliated "rau" EmpIOY~~li~~~~fication Tax neriod 3 Tentative tax ............ .......................................... .......................................................................... ........ 31 2 688. 4 Credits: ..... . Overpayment credited from prior year ................. 4. b Estimated tax payments for the tax year 4b 5 280. 0 less refund for the tax year applied for on Form 4466 40 I, , B.I~ 4d 5 280. e Credit from regulated investment companies 4. I Credit for Federal tax on fuels .... ................................. .......... 41 5 Total. Add lines 4d through 4f ............................... 5 5 280. 6 Balance due. Subtract line 5 from line 3. Denosit this amount electronicallv or with a Federal Tax Deoosit (FTo) Gouoon ...... 6 o . Signature. - Under penalties 01 perjury, I declare that I have been authorized by the above-named corporation to make this application, and to the best of my knowledge and behef, the statements made are true, correct, and complete. (Signature Of officer or agenl) (T!lle) (Date) JWA For Paperwork Reduction Act Notice, see instructions. Form 7004 (Aev. 7-97) 719741 '9-11-97 5140124 706230 33100 102 JET VAC SERVICE AND EQUIPMENT 33100_2 Taxable income before nel operating loss deduction and special deductions. Subtract line 27 from line 11 I"" Less: a Net operating loss deduction .................. ........... ...... ...... ........... ..... I 29a b Snecial deductions 'Schedule Cline 20' 29b I 30 Taxable income. Subtraclline 29c from line 28 ...... ......................... .................... 31 Totaltax (Schedule J, line 12) ..... ........ .............. 32 Payments: a 1997 overpayment 32a credited 10 1998 ............ b 1998 estimated tax payments 32b less 1998 refund applied for 32d C on Form 4466 32c d Bal ... e Tax deposited with Form 7004 .... ................ ......... 32e f Credit fo, tax paid on undistributed capital gains (attach Form 2439) ............... 32f g Credit for Federal tax on fuels (attach Form 4136) ................................... 32g 32h 33 Estimated tax penalty. Check if Form 2220 is attached ......... ............................. ........... ~ 0 33 34 Taxdue.lf line 32h is smaller than the total of lines 31 and 33, enter amount owed ........ ............... ................... 34 35 Overpayment. If line 32h is larger than the total of lines 31 and 33, enter amount overpaid .......... ....... ....... ..... 35 2 36 Enter amount of line 35 I/QU want Credited to 1999 estimated tax .... Refunded ... 36 2 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, COlTect, and complete. Declaration 01 preparer (other than taxpayer) is based on all information of which preparer has any knowledge. For: 1120 , ...,.dJ.~."'.1:;or:.. '. E.~r,~ti.Qn Income Tax Return }',I "-' ,{f ':! FOr pa"~OJo/'year 1998 or tax year beginning \ '. " , ; ,..-,."., I , and ending '-, '-..' , '\':~:-:, lj if Department or the Treasury Internal Revenue ServIce A Check if a: 1 Consolidated return (attach Form 851) 2 Personal holding co. (attach Sch. PH) 3 Personal service corp. (as defined in Temp. D Regs. sec. 1.441-41) Name JET VAC SERVICE AND EOUIPMENT INC Number, street, and room or suite no. (If a P.O. box. see page 5 of instructions.) THREE LONG LANE City or town, state, and ZiP code "TT~ lOl>, 17n"" E Check annlicable boxes: (1) r llnitial return (2) r l Final return (3\ r l Channe of address 1 a Gross receipts or sales I 1 161 600.1 blessrelurnsandaJlowances Ie Bal.... 2 Cost of goods sold (Schedule A,line 8) .. ..... ......... ................... ...... ..... ... ..... ........... ........ ........... ...... 3 Gross profit. Subtract line 2 from line 1c .................... . ........................... .... ................................... 4 Dividends (Schedule C,line 19) ...... ............ .............. ...... ........................... ........ S Interest ........................................................................... ........................... 6 Gross rents ..... ......... .................. ........ ............... .................... ...... 7 Gross royalties ....... ... ..... .... ..... ..... .......... ... ..... ......... .......... ...... ........ .... ... .......... ..... ..... 8 Capital gain net income (attach Schedule D (Form 1120)) ...... 9 Net gain or (loss) from Form 4797, Part II, line 18 (attach Form 4797) :~ ~:~:~ :~~:::.(~:~~i~~;~dt~;~~~h;O"'" .............. ,,',' .......g.E.E....g.T.AT.E.l>j:E.NT...J. ........a;: 12 Compensation of officers (Schedule E, line 4) ............ .......... ... ........ ...... . ..... ...... 13 Salaries and wages (less employment credits) . ... ... ........ 14 Repairs and maintenance .......................... ........... ..................................... ............... 15 Bad debts ...... ............ ................ ......... .......... ...... .................. ................... 16 Rents .... ......... . ............................. ................ 17 Taxes and licenses ..,...................... ...... .."..... ....,....g.EE,gTl\..T.E.l>j:ENT ..2.. 18 Interest ... ............. ...... ... .......... .......... ........................ .................... 19 Charitable contributions gEE,..gT../\.T.E.l>j:ENT ..3 ....,ANP.... 20 Depreciation (attach Form 4562) 21 less depreciation Claimed on Schedule A and elsewhere on return .... ... .... ..... 22 Depletion 23 Advertising .................................. ............ 24 Pension, profit.sharing, etc., plans ...................... 25 Employee benefit programs ............................... ............... ........ ...................... 26 Other deductions (attach schedule) ................ ............ ................. ......g.);:);: ..g.T'/\'T);:M);:N'r ..5.... ....... 27 Total deductions. Add lines 12 through 26 ...... ..... ........................... ............ ....... 28 29 Use IRS label. Other- wise, print or type. o o ~ E o " .5 .. ~ o '" " :> "0 ~ Cl SEE ST.lI;TEMENT 4 T 20 f 69 21a I 62 483. 684. .. ~ ~ " E '" ~ 0.. "0 ~ ~ X ~ 2U72()~ .... 2 720. 4 100. Sign Here ~Signatur!lO'OffiCer Preparer's slQl1ature I Date S 1c 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1S 17 18 19 ~ 21b 22 23 24 25 26 27 28 OMS No. 1545.0123 1998 B Employer identification number 23-1914288 C Dateincorporated 12/04/1973 D Total assets (see page 5 of Instructions) 448 1 161 863 298 864. 600. 105. 495. 29c 30 31 11 309 101 57 7 070. 565. 451. 990. 530. 22 800. 24 504. 6 "06. 885. 6 799. 50 278 30 240. 705. 860. 30 860. 4 629. 6 820. o . 191. 191. Paid Pre. parer's Use Only ~ ~WAGGONER, FRUTIGER & DAUB r.5006 E TRINDLE RD SUITE 200 MECHANICS BURG PA ~Tit18 I Cheek if ..IPreparer's spcial se~urity number "If.omplo",d 01 178: 38' 3454 IElN .. 23 :1583249 I Zlp"de .. 17050-3649 Date Firm's name (or yours if self-employed) and address ~~~gg.18 JWA ..... See Instructions for Paperwork Reduction Act Notice. 15120124 706230 33100 092 1 JET VAC SERVICE AND EQUIPMENT 33100_2 Form "20(1996) JET VAC SERVICE AND mUIPMENT INC 23-1914288 Paoe 2 I ScheduleA' I Cost of Goods Sold ISee DaDe 10 of insfructions.1 1 Inventory at beginning of year .,.................. ............ ... ...... .... ........ 1 12 672 . 2 Purchases .. ...... .......... ..... .. ................. ........ ..... 2 172 264. 3 Cost of labor ........... ............................... .............................. ... ................. ...... 3 270 180. 4 Additional section 263A costs (attach schedule) .. ..................... ... .... ........ ....... ..... ... ............. 4 5 Other costs (attach schedule) ..... ....... ........................... ...SEE ..S'l'ATEMEN'l'....6. ....... ..... ....... 5 417 234. 6 Total. Add lines 1 through 5 .... .......... ......................... ....... ...... .... ........ 6 872 350 . 7 Inventory at end of year ........... 7 9 245. 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 . ......... ........ 8 863 105. 9 a Check all methods used for valuing closing inventory: (i) [X] Cost as described in Regulations section 1.471-3 (ii) D Lower of cost Dr market as described in Regulations section 1.471-4 (Hi) D Other (Specify method used and attach explanation.) ~ b Check if there was a writedown of subnormal goods as described in Regulations section 1.471-2(c) c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) d If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing inventory computed under LIFO e If property is produced or acquired for resale, do the rules of section 263A apply to the corporation? Was there any change in determining quantities, cost, or valuations between opening and closing inventory? ~D ~D ~I D D Yes [X] No If "Yes' attach explanation ... ......... Yes No !SchElduleC I Dividends and Special Deductions (a) Dividends (b) % (c) Special deductions received (al xlbl 1 Dividends from less-than-20%-owned domestic corporations that are subject to the 70% deduction (other than debHinanced stock) ..........,... 70 2 Dividends from 20owor-more-owned domestic corporations that are subject to the 80% deduction (other than debt-financed stock) ...................... 80 ". 3 Dividends on debt-financed stock of domestic and foreign corporations (section 246A) Instructions 4 Dividends on certain preferred stock of less-than-20%-0wned public utilities 42 5 Dividends on certain preferred stock. of 20%-or-more.owned public utilities ........................ 48 6 Dividends from less-than~20%-owned foreign corporations and certain FSCs that are subject to the 70% deduction ... ...... ........... ....... 70 7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs that are subject to the 80% deduction ............. 80 8 ~6~~e~:U~~i~n(~:Wo~wr~~eig~.~~.~~.i~.i~~~. ~.~~!~.t. ~~. :~~... 100 9 Total. Add lines 1 through 8 ............ .......................... 10 Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 100 11 Dividends from certain FSCs that are subject to the 100% deduction (section 245(cX1)) 100 12 Dividends from affiliated group members S1Jbject to the '00% deduction (sec. 243{aX3)) .............. 100 13 Other dividends from foreign corpOfations not Included on lines 3, 6, 7, 8. Of 11 ..... 14 Income from controlled foreign corporations under subpart F (attach Form(s) 5471) 15 Foreign dividend gross-up (section 78) .....,... ,. ................... 16 IC -DISC and former DISC dividends not Included on lines 1, 2, or 3 (section 24l3(d)) 17 Other dividends 18 Deduction for dividends paid on certain preferred stock of public utilities. 19 Total dividends. Add lines 1 through 17. Enter here and on line 4, page 1 ~ 20 Total soecial deductions. Add lines 9 10 11 12 and 18. Enter here and on line 29b. oaoe 1 .... ~ I SChedule E I ComDensation of Officers Com lete Schedule E onlv If total reeeiots line 1a olus lines 4 throuoh '0 on oaoe 1, Form 1120)are $500,000 or more. (C) Percent Percent of corporation (a) Name of officer (b) Social security of time stock owned (f) Amount of number devoted Idl Common 'e\ Preferred compensation to business 1 ZORA BOWMAN 187-16-6525 100 59.00% 38 500. STEVE BOWMAN 187-36-7751 100 41. 00% 62 951. 2 Total compensation of officers 101 451. 3 Compensation of officers claimed on Schedule A and elsewhere on return ........... ....,.............. ........... 4 Subtract line 3 from line 2. Enter the result here and on line 12. nane 1 101 451. [X] 611611 11-02-96 15120124 706230 33100 092 2 JET VAC SERVICE AND EQUIPMENT 33100 2 Form 1120 '1998\ ,JET 'VAC SERVICEr AND)EOUIPMENT INC 23 1914288 Pane 3 r5chedule .11 Tax Comoutation ISee pane 13 of instructions. I ~O 1 Check if the corporation is a member of a controlled group (see sections 1561 and 1563) Important: Members of a controlled group, see instructions on page 13. It tne box on line 1 is checked, enter the corporation's share of the $50,000, $25,000, and $9,925,000 taxable Income brackets 2a (in that Ofder): 1 (2) 1$ 1 (3) (1) 1$ $ b Enter the corporation's share of: (1) Additional 5% tax (not more than $11,750) r< (2) Additional 3% tax (not more than $100,000) I~ 3 Income tax. Check ita Qualified personal service corporation under section 44B(d)(2) STMT 7 (see page 13) .... ............. .... ........................... .................................. ..... ~O 3 4 629. 4a Foreign tax credit (attach Form 1118) ................... 4a b Possessions tax credit (attach Form 5735) ........ .... ........ ....................... ............ ..... 4b . Check: D Nonconventional source fuel credit o QEV credit (attach Form 8834) 4. d General business credit. Enter here and check which forms are attached: 03800 o 3408 0 5084 06478 0 6765 06566 0 6"0 06"6 . o 6635 0 6644 06'45 0 "4' 0 "'0 0 "47 D"" 4d .' e Credit for prior year minimum tax (attach Form 8827) 4e 5 Total credits. Add lines 4a through 4e ......... ........ 5 6 Subtract line 5 from line 3 ............................ 6 4 629. 7 Personal holding company tax (attach Scheduie PH (Form 1120)) 7 8 Recapture taxes. Check if from: o Form 4255 OFo;~ii6;i .... ............. 8 9 Alternative minimum tax (attach Form 4626) ........... 9 10 Add lines 6 through 9 ........................ ............ ........ ...... ...... ... ....... ..... 10 4 629. 11 Qualified zone academy bond credit (attach Form 8860) ..................................... 11 12 Total tax. Subtract line 11 from line 10. Enter here and on line 31. oaae1 . 12 4 629. [Schedule K. I Other Information ISee oaoe 15 of instructions.) 1 Check method of accounting: a o Cash b [X] Accruai Yes No 7 Was the corporation a U.S. shareholder of any controlled Yes No . D Other (specify) ~ foreign corporation? (See sections 951 and 957.) .............. X 2 See page 17 of the instructions and state the: If "Yes," attach Form 5471 for each such corporation. a Business activity code no. (NEW) ~ 235900 ... Enter number of Forms 5471 attached ..... b Business activity ...... SALES AND SERVICE ... 8 At any time during the 1998 calendar year, did the corporation C Product or service ...... EQUIP SALES & MAINT have an interest in or a signature or other authority over a 3 At the end of the tax year, did the corporation own, financial account (such as a bank account, securities directly or indirectly, 50% or more of the voting stock of account, or other financial account) in a foreign country? ...... X a domestic corporation? (For rules of attribution, see If "Yes,' the corporation may have to file Form TO F 90'22.1. section 267(c).) X If "Yes,' enter name of foreign country ~ If "Yes," attach a schedule showing: (a) name and 9 During the tax year, did the corporation receive a distribution identifying number, (b) percentage owned, and (c) ..... from, or was it the grantor of, or transferor to, a foreign trust? taxable income or (loss) before NOL and speciai If 'Yes," the corporation may have to file Form 3520 ......... X deductions of such corporation for the tax year ending with or within your tax year. 10 At any time during the tax year, did one foreign person awn, 4 Is the corporation a subsidiary in an affiliated group or a directly or indirectly, at least 2511/11 ot (a) the total voting power parent-subsidiary controlled group? X of all classes of stock of the corporation entitled to vote, or (b) If "Yes," enter employer identification number and name of the total value of all classes of stock of the corporation? the parent corporation ~ If 'Yes,' X a Enter percentage owned ..... 5 At the end of the year, did any individual, partnership, b Enter owner's country.... corporation, estate or trust own, directly or indirectly, c The corporation may have to file Form 5472. Enter number of 50% or more of the corporation's voting stock? (For rules Forms 5472 attached ~ of attribution, see section 267(c).) PSr.J.I,r.:E:~:E:Nr...8... X 11 Check this box if the corporation issued publicly offered debt instruments with original issue discount. ~O If 'Yes; attach a schedule showing name and identifying If so, the corporation may have to file Form 8281. number. (Do not include any information already entered in 12 Enter the amount of tax-exempt interest received or accrued 4 above.) Enter percentage owned ~ 59.00 during the tax year ~ $ 8 During this tax year, did the corporation pay dividends (other 13 If there were 35 or fewer shareholders atthe end of the than stock dividends and distributions in exchange for tax year, enter the number ..... 2 stock) in excess of the corporation's current and accumulated 14 If the corporation has an NOL for the tax year and is electing earnings and profits? (See sections 301 and 316.) X to forego the carryback period, check here ~ 0 If "Yes," file Form 5452. If this is a consolidated return, 15 Enter the available NOL carryover from prior tax answer here for the parent corporation and an Form 851, years {Do not reduce it by any deduction on line I Affiliations Schedule, for each subsidiarv. 29a.\ ~ . 811621 11-06-98 15120124 706230 33100 092 3 JET VAC SERVICE AND EQUIPMENT 33100 2 Form 1120 11998\ JET VAC SERVICE' AND 'EOUIPMENT INC 23-1914288 Page 4 IScheduleiLI Balance Sheets .er Books Beginning of tax year End of tax year Assets la\ (b) Icl Id\ 1 Cash ..... ............ ................ 58 139. 122 043. 2a Trade notes and accounts receivable 184 285. 152 77"'. b Less allowance for bad debts 184 285. I 152 779. 3 Inventories ......... ................ 12 672. 9 245. 4 U.S. government obligations 5 Tax-exempt securities .... 6 Other current assets ........STMT ..9... 5 806. 3 571. 7 Loans to stockholders ............. 8 Mortgage and real estate loans......... 9 Other investments 10a Buildings and other depreciable assets 1 168 278. 1 211 376. b Less accumulated depreciation II 1 007 803 160 475. t 1 068 900 142 476. 11a Depletable assets ........... b Less accumulated depletion .... II , 12 Land (net of any amortization) . . 13. Intangible assets (amortizable only) b Less accumulated amortization II , ............... 14 Other assets .......... ... ....S.TM.T ...1.0 20 250. 18 750. 15 Total assets ......... ................ ..... 441 627. 448 864. Liabilities and Stockholders' Equity . .. 16 Accounts payable 70 899. 52 284. 17 Mortgages, notes, bonds payable In less than 1 year 37 833. 20 811. 18 Other cUlrent liabilities ...... STMT. ..11 6 874. . 39 328. 19 Loans from stockholders ... 45 483. 30 483. 20 Mortgages, notes, bonds payable In 1 year or more 10 796. 1 985. 21 Other liabilities....... .... ...... .STMT. ..12 ... 5 832. 7 711. 22 Capital stock: a Preferred stock. b Common stock ........ 14 601. 14 601. 14 601. 14 601. 23 Additional paid-in capital .......... < 24 Retalnedearnings. Appropriated (attach sohedule) ............... 25 Retained earnings. Unappropriated 249 309. 281 661. 26 Adjustments to shareholders' equity ............ 27 Less cost of treasury stock t . , \ 28 Total liabilities and stockholders' enuih/.... 441 627. 448 864. Note: You are not required to complete Schedules M-1 and M-2 below if the total assets on line 15, column (d) of Schedule L are less than ~25 000. rSChedllleM-tl Reconciliation of Income (Loss) per Books With Incomener Return 1 Net income (loss) per books 32 352. 7 Income recorded on books this year not 2 Federal income tax .... ......... 4 629. included on this return (itemize): .. 3 Excess of capital losses over capital gains Tax-exempt interest $ 4 Income subject to tax not recorded on books this year (itemize): 8 Deductions on this return not charged 5 Expenses recorded on books this year not against book income this year (itemize): deducted on this return (itemize): a Depreciation $ 8,386. a Depreciation.... $ b Contributions $ b Contributions carryoVef .... carryover .... $ Travel and $ 8 386. C entertainment STMT 13 2,265. 2 265. 9 Add lines 7 and 8 8 386. B Add lines 1 throu.h 5 ......................-.......... 39 246. 10 Income (line 28 .an~;;~ii~~6i;;;ii~~9u__ 30 860. r SChedule M-2 I Analvsis of Unao[ ropriated Retained Earninas oer Books lLine 25. Schedule Ll 1 Balance at beginning of year . 249 309. 5 Distributions: a Cash 2 Net income (loss) per books 32 352. b Stock 3 Other increases (itemize): c Property 6 Other decreases (itemize): 7 Add lines 5 and 6 4 Add lines 1 2 and 3 . 281 661. 8 Balance at end of ,,~'~~';ii'~; -4'i~~~'ii~~.7~'-'." 281 661. 811631 11-02-98 15120124 706230 33100 4 092 JET VAC SERVICE AND EQUIPMENT 33100 2 -4562 r . OMS No. 1545-0172 Depreciation and Amortization 1998 Form (Including Information on Listed Property) OTHER Department of the Treasury ..... See separate instructions. .... Attach this form to your return. Attacnment Internal Revenue Service (Q9) Sequence No. 67 Name(s) shown on retum Business or activity to which this form relates Identifying number JET VAC SERVICE AND EOUIPMENT INC OTHER DEPRECIATION 23-1914288 F Parf.1T Election To Expense Certain Tangible Property (Section 179) (Note: If you have any "listed property;complete Part V before you complete Part I.) 1 Maximum dollar limitation. If an enterprise zone business, see instructions 1 18 500. ........... ..... .......................... ............ 2 Total cost of section 179 property placed in service ............... ............ .... .. -,...... .............. .... ..... 2 1 294. .................. 3 Threshold cost of section 179 property before reduction in limitation ..... ..... ........... .................. ....... 3 $200,000 ............... 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter .C- ..................... ....... .... 4 O. .. ..... .......... 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0.. If married filing senaratelv see instructions ........... ..... ..... ........................................ ......... ..... .............. ...... ........... ...... 5 18 500. a (a) Description of property (b) Cost (business use only) (c) Elected cosl ... . 7 Listed property. Enter amount from line 27 ... ................. .................. .......................... I 7 8 Total elected cost of section 179 property. Add amounts in corumn (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 1997 ................ ........................... ... .......... ........... ................. ..... 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 .......................... 11 18 500. 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 .................... .... .......... 12 13 Carryover of disallowed deduction to 1999. Add lines 9 and 10, less line 12 .......... ~I 13 I Note: Do not use Part /I or Part /If 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. I:pa.rt III MACRS Depreciation For Assets Placed in Service ONLY During Your 1998 Tax Year (Do Not Include Listed Property.) Section A - General Asset Account Election 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 instructions .... ......... ............... ... ..... .... ............ ...... ...... ...... ......... ......... ............ ...... .................................... . D Section B ~ General Depreciation System (GOS) (See instructions.) (b) Month and (c) Basis tor depreciation (d) Recovery (a) Classification of property year placed (businesslinvestmentuse (e) Convention (flMethod (g) Depreciation deduction in service only-seelnstl'\Jctions) period 15 . 3.vear nronert" b 5.voar nronertv . 1 294. 200 259. c 7.voar nronortv d 1 ().vo.r nronortv e 15-"oar nronert" f 20.vear orooertv :< n 25.vear nronertv 25vrs. S/L I 27.5 vrs. MM S/L h Residential rental property I 27.5 vrs. MM S/L I 39 vrs. MM S/L i Nonresidential real property I MM S/L Section C - Alternative Depreciation System (ADS) (See instructions) 16 a Class life b 12.vear c 40-year I I Partml Other Depreciation (Do Not Include Listed Property.) (See instructions.) 17 GOS and ADS deductions for assets placed in service in tax years beginning before 1998 ....... .... .................... 18 Property subject to section 168(1)(1) election ............... ............. ........... ....... .... ........... ........ .............. 11;a~Na~~;::~:~~::cii~:i~:~ti~~~:) ..... ....................... .. ........ .... ................. ............................ . 20 Usted property. Enter amount from line 26 ................. .......... ............... ......... ...... ........... ............ 21 Total. Add deductions on line 12, fines 15 and 16 in column (g), and lines 17 through 20. Enter here and on the appropriate lines of your return. Partnerships and S corporations. see instructions ......... ................. 22 For assets shown above and placed in service during the current year, enter the J I nortion of the basis attributable to section 263A costs ....... .......................... ............. 22 12 vrs. 40yrs. MM S/L S/L S/L 17 18 19 1 335. 1 578. 20 3 627. 21 6 799. LHA 818251 02.16-99 15120124 For Paperwork Reduction Act Notice, see the separate instructions. Form 4562 (1 998) 706230 33100 092 5 JET VAC SERVICE AND EQUIPMENT 33100 2 1998 :JET 'tJAC SERVICE' AND "E UIPMENT INC 23-1914288 Page 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 of Section S, and Section C if applicable. Section A - Depreciation and Other Information (Caution: See instructions for limits for passenger automobiles.) 23a Do IIOU have evidence to sunnort the business/investment use claimed? [X] Ves DNa 23b If "Yes" is the evidence written? [X] Yes D No (a) (b) Date (e) (d) (e) (I) (9) (h) (i) Type of property placed in Business! Cost or BasisfOl'depreeialion Recovery Methodl Depreciation Elected (list vehicles first) service investment other basis (business/inveslmenl period Convention deduction section 179 use percentage useOl1ty) cost 24 Pro....ert\l used more than 50% in a r ualified business use: FORD EXPLORER 101294 % 26 511- 5 DDB-HY 3 627. , % % 25 Pro.....ert" used 50% or less in a nualified business use: % S/L. % S/L. % S/L- 26 Add amounts in column (h). Enter the total here and on line 20, page 1................... I 26 3 627. .. ............ .............. ...... 27 Add amounts in column IP. Enter the total here and on fine 7 .....ane 1 ................ .......................... ............ ...... ....... ......... I Z7 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. (a) (b) (e) (d) (e) (I) 28 Total business/lnvestment miles driven during the Vehicle Vehicle Vehicle Vehicle Vehicle Vehicle year (DO NOT include commuting miles) .................. 29 Total commuting miles driven during the year ... 30 Total other personal {noncom muting) miles driven ... ................................... ......... ......... 31 Total miles driven during the year. Add lines 28 through 30............................... .... Ves No Ves No Ves No Ves No Ves No Ves No 32 Was the vehicle available for personal use during off-duty hours? .......................... ....... X 33 Was the vehicle used primarily by a more than 5% owner or related person? .... ............ X 34 Is another vehicle available for personal use? ....... .......... ................. ............... .......... X Section C - Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons. Ves No 35 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by your employees? ... .................. ................. ........................................................... ......... ... ...................... ..... ... .... ....................... X 36 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See instructions for vehicles used by corporate officers, directors, or 1% or more owners ........... .... ..... ....... .......... X 37 Do you treat all use of vehicles by employees as personal use? .............. ...... .... .... ....................-........... ..... ...... ......... ........ X 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? .......................... ......... ................. ............... ................ ................. X 39 Do you meet the requirements concerning qualified automobile demonstration use? .................. .......... .......... ............................ X Note: If your answer to 35, 36, 37, 38, or 39 is "Yes," you need not complete Section B for the covered vehicles. I Part VII Amortization (a) I (b) (e) (d) (e) (I) Descriptionolcosls Daleamortlzanon Amortizable Code Amortization Amortization begins amount section period or pelcenlalle for this year 40 Amortization of costs that begins during your 1998 tax year: LIFE LINE SYSTEM 1070196 22 500. 15YRS 1 500. I 41 Amortization of costs that began before 1998 ... ........ ......... ...... .......... .................. ............ .. I 41 42 Total. Enter here and on ~Other Deductions" or "Other Expenses" line of your return .......... ....................... I 42 1 500. 816252 10-12-98 15120124 706230 33100 092 6 JET VAC SERVICE AND EQUIPMENT 33100 .2 '4562 . OMS No. 1545-0172 Depreciation and Amortization 1998 Form (Including Information on Listed Property) COGS Department of the Treasury .. See separate instructions. .. Attach this form to your return. Attachment Inlemal Revenue Service ('19) Sequence No. 67 Name(s) shown on return Business or activity to which this form relates Identifying number ::OST OF GOODS SOLD JET VAC SERVICE AND EOUIPMENT INC DEPRECIATION 23-1914288 I Pjld: II Election To Expense Certain Tangible Property (Section 179) (Note: If you have any 'listed property;complete Part V before you complete Part 1.\ 1 Maximum dollar limitation. If an enterprise zone business, see instructions ..... 1 18 500. .......................... ........................ 2 Total cost of section 179 property placed in service 2 26 078. .................................... .............. ........... ....... ............ ..... 3 Threshold cost of section 179 property before reduction in limitation ..................... .......... 3 $200,000 ..... ......... .......... 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0. 4 o. ..................... ........ ................. 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing seoaratelv see instructions ................................... ......... ............. ... ........ .......... ......... ...... ....... ................ 5 18 500. 6 (a) Description of property (b) Cost (business use only) (cl Elected cost ...... ..... 7 Listed property. Enter amount from line 27..... .......................................................... 1 7 ...... ,. 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 ......... ... ... ..... .................. 8 9 Tentative deduction. Enter the smaller of line 5 or line 8 ............................................. ....... .... ................... ..... 9 10 Canyover of disallowed deduction from 1997 ............. .... ............................... ........ .......... .................. ......... .. 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 ............. .. .......... 11 18 500. 12 Section 179 expense deduction. AcId lines 9 and 10, but do not enter more than line 11 ............ .................... 12 18 500. 13 Carryover of disallowed deduction to 1999. Add lines 9 and 10, less line 12 ..... .......1 13 1 ...... Note: Do not use Part II or Part III below for IJsted property (automobiles, certain other vehicles, cellular telephones, certain computers. or property used for entertainment, recreation, or amusement). Instead, use Part V for fisted property. !J'arfU 'I MACRS Depreciation For Assets Placed in Service ONL V During Your 1998 Tax Vear (Do Not Include Listed Property.) Section A - General Asset Account Election 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 instructions . ......... ... ... ............ ... ...... ... ............ ......... ... ...... ...... ...... ...... .... ........... ...... .................. ................ D Section B - General Depreciation System (GDS) (See instructions.) (b) Month and (c) Basis for depreciation (d) Recovery (a) ClassificatiOl'l of property year placed (businessllnvestmentuse period (e) Convention (f)Method (g) Depreclatlon deductiOl'l In service only- see instructions) 15 a 3.vear DrDDerlv ...... b 5-year oroDerlv ... 7 756. HY 200 1 552. c 7.vear properly 15,548. HY 200 2 222. d 10'vear prooertv e 15.vear Dropertv f 20'year oroDertv R 25'vear properly .... 25 yrs. S/L I 27.5 vrs. MM S/L h Residential rental property I 27.5 vrs. MM S/L I 39vrs. MM S/L i Nonresidential real property I MM S/L Section C - Alternative Depreciation System (ADS) (See instructions.) 16 a Class life S/L b 12.vear 12 vrs. S/L c 40.year / 40vrs. MM S/L I ParrillI Other Depreciation (Do Not Include Listed Property.) (See instructions.) 17 GDS and ADS deductions for assets placed in service in tax years beginning before 1998 ............. ............ 17 40 410. 18 Property subject to section 168{f)(1) election .................................. ................. ....... ..................... ................ 18 19 ACRS and Dther depreciation . ... .... ............ .................. 19 I Part IV! Summary (See 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 and S corporations - see instructions. ........ ............. 21 62 684. 22 For assets shown above and placed in service during the current year, enter the .. I 221 aortion of the basis attributable to section 263A costs ....................... ................... LHA For Paperwork Reduction Act Notice, see the separate instructions. gJ~f~.~g 7 1~1?n1?4 7nh~,n ,,100 Oq? 0ET VAC RERVICE AND EOUIPMENT Form 4562 (1998) 33100 2 , 1998JET VAC SERVICE AND 'E UIPMENT INC 23 1914288 Page2 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 (c) of Section A, all of Section B, and Section C if applicable. Section A - Depreciation and Other Information (Caution: See instructions for limits for passenger automobiles) 23a Do VQU have evidence to supnort the business/investment use claimed? DYes DNa 23b If "Yes II is the evidence written? DYes 0 No (a) (b) Date (e) (d) (e) (I) (g) (h) (i) Type of property placed in Business! Cost or Basis for depreciation Recovery Methodl Depreciation Elected (list vehicles first) service investment other basis (busll1esslinvestment period Convention deduction section 179 use percentage use only) cost 24 Pronertv used more than 500A, in a nualified business use: % % % 25 Pronert" used 50% or less in a nualified business use: % S/L- , % S/L- % S/L- 26 Add amounts in column (h). Enter the total here and on tine 20, page 1..... .............. ................................. I 26 27 Add amounts in column fl'. Enter the total here and on tine 7 nane 1 . ...................... ................ ..... ..... I 27 Section 8 - 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. (a) (b) (e) (d) (e) (I) 28 Total businessJinvestment miles driven during the Yehicle Vehicle Vehicle Yehicle Yehicle Yehicle year (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 through 30............................. ..... Yes No Yes No Yes No Yes No Yes No Yes No 32 Was the vehicle available for personal use during off.duty hours? ........ ........................... 33 Was the vehicle used primarily by a more than 5% owner or related person? .................. 34 Is another vehicle available for personal use? ........ ........ ............. ............................. Section C - Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons. Yes 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 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? .... .................... ............... ..... ............ Note: If your answer to 35, 36, 37, 38, or 39 is "Yes," you need not complete Section B for the covered vehicles. r Part vfT Amortization (a) 1 (b) (e) (d) (e) (I) Description 01 costs Dateamortizalion Amortizable Code Amortization Amortization begins amount section period or percentage for this year 40 Amortization of costs that begins during your 1998 tax year: I I 41 Amortization of costs that began before 1998 ....................... ......... ............ ................... .... ............... .. .... I 41 42 Total. Enter here and on "Other Deductions" or "Other Expenses" line of your return ......................... .... ........... I 42 816252 10-12-98 15120124 706230 33100 092 8 JET VAC SERVICE AND EQUIPMENT 33100 2 JET.VAC SERVIC~ AND EQUIPMENT'INC 23-1914288 FORM 1120 OTHER INCOME STATEMENT 1 DESCRIPTION AMOUNT MISCELLANEOUS TOTAL TO FORM 1120, LINE 10 11,070. 11,070. FORM 1120 TAXES AND LICENSES STATEMENT 2 DESCRIPTION AMOUNT PAYROLL TAXES REAL ESTATE TAXES MISCELLANEOUS TAXES PENNSYLVANIA TAXES - BASED ON INCOME PENNSYLVANIA TAXES - OTHER TOTAL TO FORM 1120, LINE 17 14,117. 2,915. 2,310. 3,425. 1,737. 24,504. CURRENT YEAR CONTRIBUTIONS STATEMENT 3 DESCRIPTION AMOUNT MISCELLANEOUS TOTAL CURRENT YEAR CONTRIBUTIONS 885. 885. 15120124 706230 33100 9 STATEMENT(S) 1, 2, 3 092 JET VAC SERVICE AND EOUIPMENT 33100 2 JET,VAC SERVICE AND EQUIPMENT'INC 23-1914288 FORM 1120 OTHER DEDUCTIONS STATEMENT 5 DESCRIPTION AMOUNT AMORTIZATION AUTO AND TRUCK EXPENSE LEGAL AND ACCOUNTING UTILITIES OFFICE EXPENSE DUES AND SUBSCRIPTIONS MISCELLANEOUS TRAVEL AND ENTERTAINMENT PROFIT SHARING PLAN CONTRIBUTION REPAIRS AND MAINT. - OFFICE EQUIPMENT TOTAL TO FORM 1120, LINE 26 1,500. 765. 7,002. 13,960. 8,030. 291. 1,487. 4,561. 10,000. 2,644. 50,240. SCHEDULE A COST OF GOODS SOLD - OTHER COSTS STATEMENT 6 DESCRIPTION AMOUNT TOTAL TO SCHEDULE A, LINE 5 147,923. 12,975. 55,607. 97,372. 6,433. 34,240. 62,684. 417,234. SUBCONTRACTS PARTS AND SUPPLIES VEHICLE EXPENSE INSURANCE REPAIRS AND MAINTENANCE TAXES AND LICENSES DEPRECIATION 15120124 706230 33100 11 STATEMENT(S) 5, 6 092 JET VAC SERVICE AND EQUIPMENT 33100__2 JET .VAC SERVICE AND EQUIPMENT INC 23-1914288 SCHEDULE J TAX COMPUTATION STATEMENT 7 3. LINE 1 LESS LINE 2 30,860 30,860 o o 1. TAXABLE INCOME 2. LESSER OF LINE 1 OR FIRST BRACKET AMOUNT 4. LESSER OF LINE 3 OR SECOND BRACKET AMOUNT 5. LINE 3 LESS LINE 4 o o 6. INCOME SUBJECT TO 34% TAX RATE 7. INCOME SUBJECT TO 35% TAX RATE o 8. 15 PERCENT OF LINE 2 4,629 o 9. 25 PERCENT OF LINE 4 10. 34 PERCENT OF LINE 6 o 11. 35 PERCENT OF LINE 7 o 12. ADDITIONAL 5% SURTAX. o 13. ADDITIONAL 3% SURTAX o 14. TAX TO SCHEDULE J, LINE 3 4,629 15120124 706230 33100 12 STATEMENT(S) 7 092 JET VAC SERVICE AND EOUIPMENT 33100 2 , . JET.VAC SERVICE AND EQUIPMENT INC 23-1914288 8 50% OR MORE OF VOTING STOCKS OWNED BY OTHER INFORMATION STATEMENT (A) NAME ADDRESS IDENTIFYING NUMBER (B) PERCENT OF STOCK ZORA BOWMAN EAST BERLIN, PA 17316 187-16-6525 59.00% SCHEDULE L OTHER CURRENT ASSETS STATEMENT 9 DESCRIPTION PREPAID EXPENSE NOTE RECEIVABLE - BOCA LOAN RECEIVABLE - EMPLOYEES FEDERAL PREPAID TAXES TOTAL TO SCHEDULE L, LINE 6 BEGINNING OF TAX YEAR 1,214. 2,000. 2,592. 5,806. END OF TAX YEAR 1,246. 2,000. 325. o . 3,571. SCHEDULE L OTHER ASSETS STATEMENT 10 DESCRIPTION LIFE LINE SYSTEM TOTAL TO SCHEDULE L, LINE 14 BEGINNING OF TAX YEAR 20,250. 20,250. END OF TAX YEAR 18,750. 18,750. SCHEDULE L STATEMENT 11 OTHER CURRENT LIABILITIES DESCRIPTION PAYROLL TAXES WITHHELD & ACCRUED ACCRUED WAGES & COMMISSION ACCRUED INTEREST SALES TAX PAYABLE ACCRUED PROFIT SHARING PAYROLL WITHHELD - MISCELLANEOUS FEDERAL ACCRUED TAXES STATE ACCRUED TAXES TOTAL TO SCHEDULE L, LINE 18 BEGINNING OF TAX YEAR 2,047. 2,063. 478. 63. 1,152. 1,071. 6,874. END OF TAX YEAR 16,234. 7,097. 165. 10,000. 979. 1,909. 2,944. 39,328. 1~1?n1?4 7nh?~n ~~1nn 13 STATEMENT(S) 8, 9, 10, 11 nCl? .TE'!' VAC'. RERVIC'.F. AND F.OTTTPMENT ~~1nn ? , . JET .VAC SERVICE AND EQUIPMENT INC 23-1914288 SCHEDULE L OTHER LIABILITIES STATEMENT 12 DESCRIPTION BEGINNING OF TAX YEAR DEFERRED CORPORATE TAX 5,832. 5,832. TOTAL TO SCHEDULE L, LINE 21 END OF TAX YEAR 7,711. 7,711. SCHEDULE M-1 STATEMENT 13 OTHER EXPENSES RECORDED ON BOOKS NOT DEDUCTED IN THIS RETURN DESCRIPTION PENALTIES DEFERRED TAXES TOTAL TO SCHEDULE M-1, LINE 5 AMOUNT 386. 1,879. 2,265. 15120124 706230 33100 14 STATEMENT(S) 12, 13 OQ2 ,TR'l' VlI.(' I'lP.RVT('R lI.Nn R(\TTTPMRN'l' <<1 nn ? '"m 7004 Application for Automatic Extension of Time To File Corporation Income Tax Return OMS No. 1545-0233 (Rev. July 1995) Department of the Treasury Internal Revenue Service Name of corporation Employer identification number JET VAC SERVICE AND EOUIPMENT Number, street, and room or suite no. (if a P.O. box or outside the United States, see instructions.) THREE LONG LANE City or town, state, and ZIP code MECHANICSBURG. PA 17055 Check type of return to be filed: [X] Form 1120 D Form 1120-A D Form 1120-F D Form 990-C Ill.. D Form 990- T ". INC 23-1914288 D D D Form 1120-FSC Form 1120-H Form 1120-L D D D Form 1120-ND Form 1120-PC Form 1120-PDL D D D Form 1120-REIT Form 1120-RIC Form 1120S D Form 112O-SF Note: Other 990 filers (i.e., Form 990, 990-EZ, 990-BL, 990-PF, and certain filers of Form 990-T (see instructions)) must use Form 2758 to request an extension of time to file. Form 1120-F filers: Check here if you do not have an office or place of business in the United States .....~D 1 a I request an automatic 6-month (or, for certain foreign corporations, 3-month) extension of time until SEPTEMBER 15,1999, to file the income tax return of the corporation named above for ~ [X] cafendar year 19~ or ~D tax year beginning ,_ ,and ending b If this tax year is for less than 12 months, check reason: D Initiaf return D Final return D Change in accounting period D Consolidated return to be filed 2 If this application also covers subsidiaries to be included in a consolidated return, complete the following: Name and address of each member of the affiliated rou Employer identification Tax eriod 3 Tentative tax 4 Credits: a Overpayment credited from prior year 4a b Estimated tax payments for the tax year 4b c Less refund for the tax year applied for on Form 4466 4c e Credit for tax paid on undistributed capital gains (Form 2439) Credit for Federal tax on fuels (Form 4136) 3 6 820. 2 720. Baf~ 4d 4e 41 2 720. 5 Total. Add lines 4d through 4f . 5 2 720. 6 Balance due. Subtract line 5 from line 3. De osit this amount electronicall or with a Federal Tax De osit FTD Cou on 6 4 100. Signature. - Under penalties 01 perjury, I decla-e tnatl nava been autnorizl!ld bytne above-named corporation to make tnis application, and to the best of my knowledge and belief, tne statements made ara true, correct, and complete. (Signature of officer or agent) (Title) (Date) JWA For Paperwork Reduction Act Notice, see instructions. Form 7004 (Rev. 7-98) 819741 12-14-98 15120124 706230 33100 092 JET VAC SERVICE AND EQUIPMENT 33100 2 ',;m 11208 u~s: locpm.e lax Return for an S Corporation /tr-". (f. /'~ ~iDr iiIOfl,-, ,e~' fm unless the corporation has timely filed \\ If' I P \. \. '\'_ \ '" '. _ if f f.-:'-- Qrm 53 to elect to be an S corporation. <.:> '<~EXQ;!lmSI GRANTED TO 09 15 00 OMS No. 1545-0130 . . Department of Ine Treasury Internal Revenue Service 1999 For calendar ear 1999 or tax ear be innin and endin A Effective date of election Use Name C Employer identification number as an S corporation IRS 01 01 1999 ~~;~ JET VAC SERVICE AND E UIPMENT INC 23-1914288 B Business code no. wise, Number, street, and room or suite no. (If a P.O. box, see page 10 of the instructions.) 0 Date incorporated (see pages 26-28) please THREE LONG LANE 12 04 1973 print or type. City or town, state, and ZIP code E Total assets (see page 10) 235900 567 737. F Check applicable boxes: (1) D Initial return (2) D Finalreturn (3) D Change in address (4) D Amendedreturn G Enter number of shareholders in the corporation at end of the tax year .. .............. .... ... ..... _.... ... ... ... ...... ................ ........ ... ..... ..... .......... ... ........ 2 Caution: Include onlY trade or business income and eXDenses on lines 1a throuah 21. See the instructions for more information. 1 a Gross receipts Of sales 1 , 0 61 , 3 0 9 . b Less returns and allowances C Bal ~ Ie 1 061 309. 0 2 Cost of goods sold (Schedule A, line 8) ............ ..... .................-. ........... ........................................... 2 733 736. E 3 Gross profit. Subtract line 2 from line 1c 3 327 573. 0 ............. ................................................................... ..... u 4 Net gain (loss) from Form 4797, Part II, line 18 (attach Form 4797) 4 .E 5 Other income (loss) (attach schedule) ...................... ...... H....H.H... .HH S.~1.Vr.E!1EN~ ..1H 5 10 277. 6 Total income 11055\. Combine lines 3 throuoh 5 ~ 6 337 850. 7 Compensation of officers .......................... .H ........ .................................... .S'r b'rE;ME;NT ..4lH 7 91 350. 8 Salaries and wages (less employment credits) .... ........................................ 8 59 657. OJ 9 Repairs and maintenance 9 7 897. c .... ............................. ..................... 0 10 Bad debts 10 9 500. ~ ............................................... H ................... ........................... ~ 11 Rents U 22 801. ] H. ............................ ~ 12 Taxes and licenses .......................................... ...... ................................... .STb.'r.E;.!1.E;.NT. .JH 12 20 563. .2 13 Interest H ............. .Hr;4~r 13 10 403. 0 c 141 Depreciation c;t required, attach Form 4562) .. 70 682. .2 ........................ .............. t) b Depreciation claimed on Schedule A and elsewhere on return ........................ 114b 67 810. ~ ~ c Subtract line 14b from line 14a .................... ........................ .................................................... ............ 14c 2 872. 0 .5 15 Depletion (Do not deduct oil and gas depletion.) 15 0 ....... ................. .............. .H .H H ............ ............. ...... 0 16 Advertising 16 565. ~ ..................................................................... .......... 0 17 Pension, profit~sharing. etc., plans ..................... ..................... 17 9 073 . c 0 18 Employee benefit programs 18 36 913. '" .............................. .............................. u 19 Other deductions (attach schedule) ...8.TATEMENT...4.......... 19 53 937. ~ .......... ................ .................... .......... "C 0 20 Total deductions. Add the amounts shown in the far right column for lines 7 through 19 ~ 20 325 531. c 21 Ordinarv income (loss' from trade or business activities. Subtract line 20 from line 6 ....... 21 12 319. 22 Tax: a Excess net passive income tax (attach schedule) .............. ....... .. I 22. b Tax trom Schedule 0 (Form 1120S) ....... ............... .... ............................ I 22b , Add iines 22a and 22b .... ....................... .......... 22, 0 23 Payments: a 1999 estimated tax payments and amount applied from 1998 return 23a ~ ~ C 0 b Tax deposited with Form 7004 23b E ............................... '" c Credit for Federal tax paid on fuels (attach Form 4136) 23, ~ .... ....... .............. 0- "C d Add lines 23a through 23c 23d c HHtj ~ 24 Estimated tax penalty. Check if Form 2220 is attached ~ 24 x {!. 25 Tax due. If the total of lines 22c and 24 is larger than line 23d, enter amount owed. See instructions for depositary method of payment ......... ................................................-......... ................................. .H ~ 25 26 Overpayment. If line 23d is larger than the total of lines 22c and 24, enter amount overpaid HI ~ 26 27 Enter amount of line 26 you want Credited to 2000 estimated tax ~ Relunded ~ 27 Please Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Sign ~ I ~ Here Signature of officer Date Title Preparer's ~ Date Check if Preparer's Paid self- SSN or PTIN signature emnloved ~ D 178-38-3454 Preparer's Firm's name (or ~WAGGONER, FRUTIGER & DAUB Use Only yours if self- E.I. No. ~ employed) 5006 E TRINDLE RD SUITE 200 23-1583249 and address MECHANICSBURG PA ZIP code ~ 17050 3649 JWA 911701 11-29-99 For Paperwork Reduction Act Notice, see the separate instructions. 15100124 706230 33100 1 1999.08200 JET VAC SERVICE AND EQUIPME 33100__1 Form 11205 (1999) FQrm 11208 (19991' JET VAC SERVICE 'AND EQUIPMENT INC I SCh~dule A I Cost of Goods Sold 23-1914288 Paae2 1 Inventory at beginning of year ........................................................... ....... 1 9 245 . 2 Purchases ................................. .............................. ....... ......... 2 151 5elO . 3 Cost of labor ................... ....................................................................... .. .................. ... ..... 3 273 522 . 4 Additional section 263A costs (attach schedule) .................. .......... ............. ... ......... 4 5 Other casts (attach schedule) ........................... ...... ..... ...SEE ..STATEMENT ..5. ............ 5 309 390 . 6 Total. Add lines 1 through 5 .. ... ............................. ................... ....... ..... 6 743 747 . 7 Inventory at end of year ....................... 7 10 011 . 8 Cast of goads sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 ......... ................ 8 733 736 . 9 a Check all methods used for valuing closing inventory: (i) [X] Cost as described in Regulations section 1.471-3 (ii) D Lower of cost or market as described in Regulations section 1.471-4 (iii) D Other (specify method used and attach explanation) ~ b Check if there was a writedown of "subnormal" goods as described in Regulations section 1.471-2(c) .......... .... .... ......... o Check if the LIFO inventory method was adopted this tax year far any goods (if checked, attach Form 970) d If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing inventory computed under LIFO .. ..... .... ........ ... ...... ... ...... . ..... .... ... ....... ........ ........ ......... .... .... ........ e Do the rules of section 263A (for property produced or acquired for resale) apply to the corporation? ... f Was there any change in determining quantities, cost, or valuations between opening and closing inventory? .. .... ... ........... ......... .... ... .... If 'Yes." attach explanation. I'Schedule B I Other Information ..........................~D .........~D w D Yes [X] No D Yes [X] No Yes No 1 Check method of accounting: (a) DCash (b) [X] Accrual (0) D Other (specify) ~ 2 Refer to the list on pages 26 through 28 of the instructions and state the corporation's principal: (i) Business activity ~ SALES AND SERVICE (b) Product or service ~ EQUIP SALES & MAINT 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).) [f'Yes," attach a schedule showing: (a) name, address, and employer identification number and (b) percentage 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 account, or other financial account)? (See page 15 of the instructions for exceptions and filing requirements 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 of the instructions ..... ................................. .......................... X 7 Check this box if the corporation has filed or is required to file Form 8264, Application for Registration of a Tax Shelter ..~D I 8 Check this box if the corporation issued publicly offered debt instruments with original issue discount ......................... .................... ..~D If so, 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 with a basis determined by reference to its basis (or the basis of any other property) in the hands of a C corporation, and (0) has net unrealized built-in gain (defined in section 1374(d)(l)) in excess of the net recognized built-in gain from prior years, enter the net unrealized buHt.in gain reduced by net recognized built-in gain from prior years ....................................................................................................................~ $ 10 Check this box if the comoration had accumulated earninns and nrofits at the close of the tax vear ....... ~D Form 1120S (1999) 91171' 11-29-99 2 1999.08200 JET VAC SERVICE AND EQUIPME 33100__1 15100124 706230 33100 Form 11205 (19991, JET VAC SERVICE 'AND EOUIPMENT INC 23 1914288 Paoe 3 I SchedUle K I Shareholders' Shares of Income Credits Deductions. etc. la\ Pro rata share items (bl Total amount 1 Ordinary income (loss) from trade or business activities (page l,line 21) 1 12.319. 2 Net income (loss) tram rental real estate activities (attach Form 8825) qr T ............................. 2 3a Gross income from other rental activities 3a b Expenses from other rental activities (attach schedule) ....................... q I 3b I c Net income (loss) from other rental activities. Subtract line 3b from line 3a ........... 3c " 4 Portfolio income (loss): 0 .G75. 0 a Interest income .. ..qq.qqq.. q.q.q..q..q..q.q.qqq...qqSTN):'EI!oIENT qQ 4a 2 d- ....................... ...... ~ b Ordinary dividends 4b E ........................... ............ ....................... ..............".... ............................ 0 c Royalty income 4c u .... ................... .............. ............................................ .......................................... E d Net short-term capital gain (loss) (attach Schedule D (Form 11205)) 4d .............................. ............ .............. e Net long-term capital gain (loss) (attach Schedule 0 (Form 11205)): (1) 28%rategain(loss)~ (2) Totalforyear~ 4ef21 1 Other portfolio income (loss) (attach schedule) ............................ .................................,........................ 41 5 Net section 1231 gain (loss) (other than due to casualty or theft) (attach Form 4797) ........................... 5 6 Other income (lossl (attach schedule\ . . 6 ~ 7 Charitable contributions (attach schedule) .. ........... ... .... ......................qST~TEI!oIENT ..7.. 7 301. ~ 0 8 Section 179 expense deduction (attach Form 4562) 8 11 229. u .... ..................................... .............. ~ 9 Oeductions related to portfolio income (loss) (itemize) 9 ~ .......................... ............... ~ <> 10 Other deductions (attach schedule\ 10 ~ 11a Interest expense on investment debts 11a E1n .... ........................ ........... ................... - ~ b (1) Investment income included on lines 4a, 4b, 4c, and 4f above llbf1\ 2 975. ~~ ~~ >- 12\ Investment exoenses included on line 9 above llbf2\ ~~ 12a Credit for alcohol used as a fuel (attach Form 6478) 12a b Low-income housing credit < (1) From partnerships to which section 42(j)(5) applies tor property placed in service before 1990 12bfl1 0 (2) Other than on line 12b(1) for property placed in service before 1990 12bf2\ ~ (3) From partnerships to which section 42(j)(5) applies for property placed in service after 1989 1.hr" '6 ................. ~ (4) Other than on line 12b(3) for property placed in service after 1989 12bl41 0 c Qualified rehabilitation expenditures related to rental real estate activities (attach Form 3468) 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 x 14a Depreciation adjustment on property placed in service after 1986 14a 8 953. m ........... ...................... r- b Adjusted gain or loss 14b ~~ ................................................................................................. ~E mJ'l c Oepletion (other than oil and gas) 14c ~- ... ................. ..................................................................... - ~ ~o d (1) Gross income from oil, gas, or geothermal properties 14drl\ ~~ ........................... E~ - ~ (2) Deductions allocable to oil, gas, or geothermal properties 14dl21 ~ ~ ~- ._~ e Other adiustments and tax oreference items rattach schedule) ... . . . . . ..........STATEMENT....8.. 307. ;;20::: 14e 15a Type of income ~ > . b Name of foreign country or U.S. possession ~ '.. . " i! c Total gross income from sources outside the United States (attach scheduie) 15c c d Total applicable deductions and losses (attach schedule) 15d '" .............. ................................... .~ e Total foreign taxes (check one): ~ D Paid DA~c~~edq " 15e 0 "" t Reduction in taxes available for credit (attach schedule) 151 o Other foreion tax information 'attach schedule\ .. 150 16 Section 59(e)(2) expenditures: a Type ~ b Amount 16b 17 Tax-exempt interest income ............................................................................................................ 17 18 Other tax.exempt income ....................................................ST~'):'EI!oIEN'):'. .9.. 18 7 711. " 19 Nondeductible expenses .............................................................................S'):'~'):'EI!oIEN'):' q;LO ... 19 1 001. . .c 20 Total property distributions (including cash) other than dividends reported on line 22 below 20 ~ 0 21 Other items and amounts required to be reported separately to shareholders (attach schedule) 22 Total dividend distributions paid from accumulated earnings and profits 22 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 throunh 11a 15e and 16b 23 3.764. Form 11205 (1999) >111721 11-29-99 15100124 706230 33100 3 1999.08200 JET VAC SERVICE AND EQUIPME 33100 1 Form 1120S r1999\ JET VAC SERVICE 'AND EOUIPMENT INC 23 1914288 Pane 4 IScheduleL I Balance Sheets Beainnina of tax vear End of tax vear A.ssets ra) rb) rcl (d) 1 Cash 122 043. 58 054. 2 a Trade notes and accounts receivable 152 779. 228 61l. b Less allowance for bad debts 152 779. 228 611- 3 Inventories ,........... 9 245. 10 011. 4 U.S. Government obligations 5 Tax-exempt securities 6 Other current assets ....S'l'WT. 13 3 571- 6 562. 7 Loans to shareholders ........ . 8 Mortgage and real estate loans 9 Other investments .. 10 a Buildings and other depreciable assets 1 211 376. " 1 380 456. .' ... b Less accumulated depreciation 1 068.900. 142 476. 1 133 207. 247 249. 118 Depletable assets .. b Less accumulated depletion ....... 12 Land (net of any amortization) ..... 13 a Intangible assets (amortizable only) b Less accumulated amortization ........> 14 Other assets .....S'l'W'l' ..J4 18 750. 17 250. 15 Total assets 448 864. 567 737. Liabilities and Shareholders' Equity i 16 Accounts payable 52 284. 52 200. 17 Mortgages, notes, bonds payable in less than 1 year 20 811. 46 094. 18 Other current liabilities ......S.TWT.J,.5 39 328. 34 550. 19 Loans from shareholders. 30 483. 96 483. 20 Mortgages, notes, bonds payable In 1 year or more 1 985. . 14 070. 21 Other liabilities .....S'l'W'l'...J.9 7 71l. > 22 Capital stock 14 60l. 14 60l. 23 Additional paid'in capital ..... 24 Retained earnings ...... ..S'r.W'r....J.Q. 281 661- 309 739. 25 Ad;ustments to shareholders' equity ......,.. ...... 26 Less cost of treasury stock ... ... .....,......... ) 27 T otalliabilities and shareholders' enu"" ... 448 864. 567 737. I Schedule M-1 I Reconciliation of Income (Loss) per Books With Income (Loss) per Return (You are not required to comnlete this schedule if the total assets on line 15 column Idl. of Schedule L are less than $25 000.\ 1 Net income (loss) per books ........' 28 078. 5 Income recorded on books this year not included 2 Income included on Schedule K, lines 1 on Schedule K, lines 1 through through 6, not recorded on books this year 6 (itemize): (itemize): a Tax-exempt interest $ STMT 18 7 ,71l. 7 711- 3 Expenses recorded on books this year not 6 Deductions included on Schedule K, lines 1 included on Schedule K, lines t through l1a, 15e, and 16b, not charged through l1a, 15e, and 16b (itemize): against book income this year (itemize): a Depreciation $ a Depreciation $ 17,604. b Travel and entertainment $ 899. 17 604. STMT 17 102. 1 OOl. 7 Add lines 5 and 6 ..' 25 315. 4 Add lines 1 throunh 3 . 29 079. 8 Income lIoss1 rSchedule Kline 23 . Line 4 less line 7 3 764. I Schedule M-2 I Analysis of Accumulated Adjustments Account, Other Adjustments Account, and Shareholders' Undistributed Taxable Income Previouslv Taxed (a) Accumulaled (b) Other adjustments <c) Share\".oltlers.' untl\s.u\buted adjustments account account taxable income previously taxed 1 Balance at beginning of tax year ...... O. 2 Ordinary income from page 1, line 21 12 319. 3 Oth.er additions ...S.'l'WT...J.1. . 10 686. 4 Loss from page 1, line 21 5 Other reductions ..S'l:'m ..J.2.. , 12 531 'I 6 Combine Jines 1 through 5 10 474. 7 Distributions other than dividend distributions 8 Balance at end of tax vear. Subtract line 7 from line 6 10 474. 4 Form 11205 (1999) 1999.08200 JET VAC SERVICE AND EQUIPME 33100 1 911731 11_29_99 15100124 706230 33100 4562 . OMS No. 1545-0112 , 1999 Form Depreciation and Amortization Department of the Treasury (Including Information on Listed Property) OTHER Attachment InternaJRevenueService ("g) "'" See separate instructions. .... Attach this form to your return. Sequence No. 67 Name{s) shown on return Business or activity to which this form relates Identifying number JET VAC SERVICE AND EnUIPMENT INC bTHER DEPRECIATION 23-1914288 I Part II Election To Expense Certain Tangible Property (Section 179) (Note: If you have any "listed property;complete Part V belore you complete Part I.) 1 Maximum dollar limitation. If an enterprise zone business, see instructions 1 19 000. ......... ................ ... ............,............. 2 Total cost of section 179 property placed in service. See instructions 2 1 682. ... ............ ....... ....... ... ..................."..... . 3 Threshold cost of section 179 property before reduction in limitation ...................... 3 $200.000 ...... ................................ 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter.(}.. 4 O. ......... ................ ........ ......... .....".... 5 Dollar limitation for tax year. Subtract line 4 from line 1. If lero or less, enter -0.. If married filing seoaratelv. see instructions ......... ................ .... ....................... ......... ......... ...... ........ ..... ...... ..... ............ 5 19 000. 6 (a)DescriptlonofprOJ'erty (b) Cost {business use Qnly) (c) Elected cost OFFICE EOUIPMENT 1 682. 1 682. 7 Listed property. Enter amount from line 27.... ............ .......................................... .. ... I 7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . .............. ............ ............ 8 1 682. g Tentative deduction. Enter the smaller of line 5 or line 8 .............. ............ ................ ............... ........ ............. 9 1 682. 10 Carryover of disallowed deduction from 1998 ............. ........... ................ ......"..... ............. ..... ... .......... 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 .... ........ ........ .... 11 19 000. 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 ........ .......... 12 1 682. 13 Carryover of disallowed deduction to 2000. Add lines 9 and 10, less line 12 HHH ~ (;~Hi ... Note: Do not use Part /I or Part 111 below for listed property (automobiles, certam other vehicles, cellular telephones, certam computers, or property used for entertainment, recreation, or amusement). Instead, use Part V for fisted property. PS,r-'fU MACRS Depreciation For Assets Placed in Service ONLY During Your 1999 Tax Year (Do Not Include Listed Property.) Section A - General Asset Account Election 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 instructions . ........... ........ .......... ................. .... ...... ...... ... ... ......... ...... .... ........ ... ... ..................... ......... ......... D Section B - Generat Depreciation System (GOS) (See Instructions.) (b) Month and (c) Basis tor depreciation (d) Recovery (a) ClassIfication of property year placed (business/investment use ".."", (e) Convention {f}Method (g) DepreCiation deduction inserv\ce only-seelnstruclions} 15 a 3.vear orooertv . b 5-vear orooertv c 7-vear orooertv d 1 O.vear oronertv e 15.vear orooertv f 20.vear orooertv 9 25.vear orooertv 25 vrs. S/L / 27.5 vrs. MM S/L h Residential rental property / 27.5 Vrs. MM S/L / 39vrs. MM S/L i Nonresidential real property MM S/L / Section C - Alternative Depreciation System (ADS) (See instructions.) 16 a Class life b 12-vear c 40.year I \ Part 11I\ Other Depreciation (Do Not Include Listed Property.) (See instructions.) 17 GDS and ADS deductions for assets placed in service in tax years beginning before 1999 ........ ........ .............. 18 Property subject to section 168(1)(1) election .... ............ .................................. .... ........ ................,..... ......... 19 ACRS and other depreciation . ............ ....... ... ....... ......... I Part IvI Summary (See instructions.) 20 Listed property. Enter amount from line 26 ............. ............. ........ .......... .......... 21 Total. Add deductions on line 12, Jines 15 and 16 in column (g), and lines 17 through 20. Enter here and on the appropriate lines of your return. Partnerships and S corporations. see instructions. 22 For assets shown above and placed in service during the current year, enter the I I Dortion of the basis attributable to section 263A costs. ......... 22 12 vrs. 40vrs. MM S/L S/L S/L 17 18 19 1. 098. 1 774. 20 21 2 872. 15100124 706230 33100 For Paperwork Reduction Act Notice, see the separate instructions. 5 1999.08200 JET Form 4562 (1999) LHA 916251 01-24-00 VAC SERVICE AND EQUIPME 33100 1 1999JET'VAC SERVICE AND'E UIPMENT INC 23-1914288 Page2 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 (0) of Section A, all of Section 8, and Section C if applicable. Section A - Depreciation and Other Information (Caution: See instructions for limits for passenger automobiles.) 23a Do you have evidence to support the business/investment use claimed? I X Yes I J No 23b If "Yes" is the evidence written? ~ Yes r l No (a) (b) Date (e) (d) (e) (I) (g) (h) (i) Type 01 property piaced in Business! Cost or Basis for depreciatiotl Recovery Methodl Depreciation Elected (list vehicles first) service investment other basis (business/invBstment period Convention deduction section 179 use percentage use only) cost 24 prooertv used more than 50% in a n ualified business use: FORD EXPLORER 101294 % 26 51lo 5 DDB-HY % % 25 Pronertv used 500/0 or less in a Qualified business use: % SIL- -- - % S/L- % SIL- 26 Add amounts in column (h). Enter the total here and on line 20, page 1.. T26 .. .......... ..... ...... ........ ..... .... Z? Add amounts in column fil. Enter the total here and on line 7_ naae 1. .......... .... ...... .......................... ...... _ I 27 Section 8 - 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 far those vehicles. (a) (b) (e) (d) (e) (I) 28 Total business/investment miles driven during the Vehicle Vehicle Vehicle Vehicle Vehicle Vehicle year (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 through 30 ...... ............. ............... Yes No Yes No Yes No Yes No Yes No Yes No 32 Was the vehicle available for personal use during off-duty hours? ........... ................ ...... X 33 Was the vehicle used primarily by a more than 5% owner or related person? ........... X 34 Is another vehicle available for personal use? -- .......... -- ........ X Section C - Questions for Employer'S Who Provide Vehicles for Use by Their Employees Answer these questions to determine jf you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons. Yes No 35 Do you maintain a written policy statement that prohibits aU personal use of vehicles, including commuting, by your employees? ........ ..... ........... ............. ............................ ..................... ............... ...... ..- ........ ........ ............... ................ X 36 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See instructions for vehicles used by corporate officers, directors, or 1% or more owners ..... ............ ....................... X 37 Do you treat all use of vehicles by employees as personal use? ....................... .............. . . . . . . . . . . ............... ......... ............. X 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? ................................... ......... .............. . . . . . . . . , . . . ............. ...... X 39 Do you meet the requirements concerning qualified automobile demonstration use? ........ ....... ............. ......... ....... ......... ..... X Note: If your answer to 35, 36, 37,38, or 39 is "Yes," you need not complete Section B for the covered vehicles. I Part VI I Amortization (a) I. (b) (e) (d) (e) (I) Description ofeosts Oateamo,rtlzation Amortizable Code Amortization Amortization ~elllnS amount section \1trilJlI 01 ~elte1'l'.3ge for this year 40 Amortization of costs that begins during your 1999 tax year: I I 41 Amortization of costs that began beforo 1999 ......... ...... ...... ......... ......... .... _.. -I 41 1 500. 42 Total. Enter here and on "Other Deductions" or "Other Expenses" line of your return ." -- ..... ....... ...._ T 42 1 500. Form 4562 (1999) 916252 10-16-99 15100124 706230 33100 6 1999.08200 JET VAC SERVICE AND EOUIPME 33100 1 F~m 4562 OMS No. 1545-0172 Department of the Treasury Internal Revenue Service (99) Name(s} shown on return Depreciation and Amortization (Including Information on Listed Property) COGS ..... See separate instructions. .... Attach this form to your return. Business or activity to which 11'115 form relates 1999 Attachment Sequence No. 67 ldentifytngnumber COST OF GOODS SOLD JET VAC SERVICE AND EOUIPMENT INC DEPRECIATION 23 1914288 I Part II Election To Expense Certain Tangible Property (Section 179) (Note: if you have any "listed property,"complete Part V before you complete Part i.) 1 Maximum dollar limitation. If an enterprise zone business, see instructions "' .......... ........................... ............... 1 19 000. 2 Total cost of section 179 property placed in service. See instructions ................... ....... ................................ 2 110 . 081 . 3 Threshold cost of section 179 property 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 . 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter .0.. If married filing seoaratelv. see instnuctions ........... .._.._........ ........ ...._.............. ..... ..............._........ _...... ..... ................. _...._. 5 19 000. 6 EOUIPMENT (a) Description of property (b) Cost (business use only) (c}Electedcost 12 212. 9 547. 7 Usted property. Enter amount from line 27.............. ................. ....... ............. .......... I 7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7............ ........ .................. 8 9 Tentative deduction. Enter the smaller of line 5 or line 8 .............. ............... ........ ...... ...................... .... ...... .. 9 10 Carryover of disallowed deduction from 1998 ...... ..... ... ................ ...... ........... ................... ................ ......... 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 ........... ............... 11 12 Section 179 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, less line 12 ........ ......-1 13 I Note: Do not use Part /I or Part III below for listed property (automobiles, certam other vehicles. cellular telephones, certam computers, or property used for entertainment, recreation, or amusement). Instead, use Part V for listed property. Partir MACRS Depreciation For Assets Placed in Service ONLY During Your 1999 Tax Year (Do Not Include Listed Property.) Section A - General Asset Account Election 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 instructions ............... .... ... ... ...... ... .... ..... ...... ... ........ ....... ............... .................. ... ......... ... ... ........... .... ......... D Section B ~ General Depreciation System (GDS) (See instructions.) 9 547. 9 547. 19 000. 9 547. (b) Monlh and (c) Basis for depreciation (d)Recovery (a) ClassificatIon of property year placed (business/investmentuse (8) Convention {f)Method (g) Depreciation deducliOl'l in service only- see Instructions) period 15 a 3-vear property b 5.vear property 97 869. 5YR AMO MC200 33 454. c 7.vear orooertv d 1 O-vear orooertv e 15.vear property .... f 20.vear orooertv o 25.vear orooertv 25 vrs. S/L / 27.5 vrs. MM S/L h Residential rental property / 27.5 vrs. MM S/L / 39 vrs. MM S/L i Nonresidential real property MM S/L / Section C - Alternative Depreciation System (ADS) (See instructions.) 16 a Class life S/L b 12-vear 12 vrs. S/L c 40-year / 40 yrs. MM S/L I Part 1111 Other Depreciation (Do Not Include Listed Property.) (See instructions.) 17 GDS and ADS deductions for assets placed in service in tax years beginning before 1999 ............. ........... ....... 17 18 Property subject to section 168(fj(1) election .......... _................ .._.... ... ...... ......... ........ ...... _........................ 18 19 ACRS and other depreciation .............. ...... ................. ..... ............ .... .............. .... ......... 19 I Part IVI Summary (See instructions.) 20 Listed property. Enter amount from line 26 .. .......... _... ........ ................ .................. ........ .._........ ................ 20 21 Total. Add deductions on line 12, lines 15 and 16 in column (g), and lines 17 through 20. Enter here and on the appropriate lines 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 I I nortion of the basis attributable to section 263A costs ................................ ............... 22 LHA For Paperwork Reduction Act Notice, see the separate instructions. ~~~ff.r.1o 7 15100124 706230 33100 1999.08200 JET 31 152. 205. 2 999. 67 810. Form 4562 (1 999) VAC SERVICE AND EQUIPME 33100 1 1999 JET "lAC SERVICE' AND 'E UIPMENT INC 23-1914288 Page 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 Jease expense, complete only 23a, 23b, columns (a) through (0) of Section A, all of Section S, and Section C if applicable. Section A - Depreciation and Other Information (Caution" See instructions for limits for passenger automobiles) 23a Do you have evidence to supnort the business/investment use claimed? I1l l Ves r l No 23b If "Yes" is the evidence written? Ti Yes D No Ca) (b) Date (el (d) (el (I) (g) (h) (i) Type of property placed in Business! Castor Basis for depreciation Recovery Method! Depreciation Elected (list vehicles first) service investment other basis (business/investment period Convention deduction section 179 use percentage use only) cost 24 Prooertv used more than In a aualifie USlness use: VEHICLE 101399 10000 % 19 960. 19 960. 5YRS !'>MO 998. VEHICLE 102799 10000 % 35 024. 35 024. 5YRS !'>MO 1 751- VEHICLE 10289Q 10000 % 5 000. 5 000. 5YRS IAMO 250. 50%. db 25 Pronertv used 50% or less in a nualified business use: % SIL- ..... % S/L- % SIL. 26 Add amounts in column (h). Enter the total here and on line 20, page 1........... I 26 2 999. .... ............ ........ ........ ........ 27 Add amounts in column m. Enter the total here and on line 7. naae 1 . ........ ....... ............... ........ .......... ...... I 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," 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. Ca} (b) (e) (dl (el (I) 28 Total businesslinvestment miles driven during the Vehicle Vehicle Vehicle Vehicle Vehicle Vehicle year (DO NOT include commuting miles) ........... ...... 29 Total commuting miles driven during the year ... 30 Total other personal (noncom muting) miles driven ...... .. ................................................. 31 Total miles driven during the year. Add lines 28 through 30 ................. .................. Ves No Ves No Ves No Ves No Ves No Ves No 32 Was the vehicle available for personal use during off.duty hours? .......... ....................,.... 33 Was the vehicle used primarily by a more than 5% owner or related person? .................. 34 Is another vehicle available for personal use? ........ ..... Section C - Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons. Ves No 35 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by your employees? .m........... .......... .......... .... .................... ......... ............. ................ ............ ............. .............. ........... ............ 36 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See 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? .................... ....... ....... ...... .......... . . . . . . . . . . . . . Note: If your answer to 35, 36, 37,38, or 39 IS nYes," you need not complete Section 8 for the covered vehicles. I Part VI I Amortization (a) I, (b) (e) (d) (e) (I) Descriplionofcosts Daleamo,rtlzation Amortizable Code Amortization Amortization beQms amount section lleriGIIIUlltfttnlal)t fur this year 40 Amortization of costs that begins during your 1999 tax year: I I 41 Amortization of costs that began before 1999 .... ........... ... ...... ............ ......... .............. ............ I 41 42 Total. Enter here and on "Other Deductions" or "Other Expenses" line of your return... .......... ........ ...... -I 42 Form 4562 (1999) 916252 10.18-eg 15100124 706230 33100 8 1999.08200 JET VAC SERVICE AND EQUIPME 33100 1 JET VAC SBRVICE AND EQUIPMENT'INC 23-1914288 FORM 1120S OTHER INCOME STATEMENT 1 DESCRIPTION AMOUNT TOTAL TO FORM 1120S, PAGE 1, LINE 5 10,277. 10,277. MISCELLANEOUS FORM 1120S COMPENSATION OF OFFICERS STATEMENT 2 (A) NAME OF OFFICER ZORA BOWMAN STEVE BOWMAN (B) SOCIAL SECURITY NUMBER (C) TIME DEVOTED TO BUSINESS ( F) AMOUNT OF PCT OF STK COMPENSATION 187-16-6525 187-36-7751 100 100 5900% 23,250. 4100% 68,100. 91,350. TOTAL COMPENSATION OF OFFICERS LESS: COMPENSATION CLAIMED ELSEWHERE TOTAL TO FORM 1120S, PAGE 1, LINE 7 91,350. FORM 1120S TAXES AND LICENSES STATEMENT 3 DESCRIPTION AMOUNT PAYROLL TAXES 13,953. REAL ESTATE TAXES 2,983. MISCELLANEOUS TAXES 1,932. PENNSYLVANIA TAXES - OTHER 1,695. TOTAL TO FORM 1120S, PAGE 1, LINE 12 20,563. FORM 1120S OTHER DEDUCTIONS STATEMENT 4 DESCRIPTION AMOUNT AUTO AND TRUCK EXPENSE LEGAL AND ACCOUNTING UTILITIES OFFICE EXPENSE DUES AND SUBSCRIPTIONS MISCELLANEOUS 1,880. 11,029. 14,201- 11,584. 191- 1,008. 15100124 706230 33100 9 STATEMENT(S) 1, 2, 3, 4 1999.08200 JET VAC SERVICE AND EQUIPME 33100 1 JET VAC SIDRVICE AND EQUIPMENT'INC TRAVEL AND'ENTERTAINMENT REPAIRS & MAINTENANCE - OFFICE EQUIPMENT MEALS AND ENTERTAINMENT AMORTIZATION EXPENSE 23-1914288 TOTAL TO FORM 1120S, PAGE 1, LINE 19 11,520. 124. 900. 1,500. 53,937. FORM 1120S COST OF GOODS SOLD - OTHER COSTS STATEMENT 5 DESCRIPTION AMOUNT SUBCONTRACTS PARTS AND SUPPLIES VEHICLE EXPENSE INSURANCE REPAIRS AND MAINTENANCE TAXES AND LICENSES DEPRECIATION EXPENSE TOTAL TO FORM 1120S, PAGE 2, LINE 5 46,413. 6,604. 73,608. 69,441. 11,697. 33,817. 67,810. 309,390. SCHEDULE K INTEREST INCOME STATEMENT 6 DESCRIPTION US OTHER PNC BANK 2,975. 2,975. TOTAL TO SCHEDULE K, LINE 4A SCHEDULE K CHARITABLE CONTRIBUTIONS STATEMENT 7 DESCRIPTION 50% LIMIT 30% LIMIT 20% LIMIT MISCELLANEOUS 301. TOTALS TO SCHEDULE K, LINE 7 301. 10 STATEMENT(S) 4, 5, 6, 7 15100124 706230 33100 1999.08200 JET VAC SERVICE AND EQUIPME 33100 1 JET VAC SERVIOE AND EQUIPMENT'INC 23-1914288 SCHEDULE K OTHER ADJUSTMENTS AND TAX PREFERENCE ITEMS STATEMENT 8 DESCRIPTION AMOUNT TOTAL TO SCHEDULE K, LINE 14E 307. 307. ACCELERATED DEPRECIATION OF REAL PROPERTY- PRE 1987 SCHEDULE K OTHER TAX-EXEMPT INCOME STATEMENT 9 DESCRIPTION AMOUNT TOTAL TO SCHEDULE K, LINE 18 7,711. 7.711. WRITE OFF OF DEFERRED TAXES FROM C CORP SCHEDULE K NONDEDUCTIBLE EXPENSES STATEMENT 10 DESCRIPTION AMOUNT PENALTIES EXCLUDED MEALS AND ENTERTAINMENT EXPENSES 102. 899. TOTAL TO SCHEDULE K, LINE 19 1,001. SCHEDULE M-2 ACCUMULATED ADJUSTMENTS ACCOUNT - OTHER ADDITIONS STATEMENT 11 DESCRIPTION AMOUNT TOTAL TO SCHEDULE M-2, LINE 3 - COLUMN (A) 7,711. 2,975. 10,686. WRITE OFF OF DEFERRED TAXES FROM C CORP INTEREST INCOME 15100124 706230 33100 11 STATEMENT(S) 8, 9, 10, 11 1999.08200 JET VAC SERVICE AND EQUIPME 33100__1 JET VAC SE~VICE AND EQUIPMENT INC 23-1914288 SCHEDULE M-2 ACCUMULATED ADJUSTMENTS ACCOUNT- OTHER REDUCTIONS STATEMENT 12 DESCRIPTION AMOUNT CHARITABLE CONTRIBUTIONS SECTION 179 EXPENSE DEDUCTION PENALTIES EXCLUDED MEALS AND ENTERTAINMENT EXPENSES TOTAL TO SCHEDULE M-2, LINE 5 - COLUMN (A) 301. 11,229. 102. 899. 12,531. SCHEDULE L OTHER CURRENT ASSETS STATEMENT 13 DESCRIPTION BEGINNING OF TAX YEAR END OF TAX YEAR TOTAL TO SCHEDULE L, LINE 6 1,246. 2,000. 325. 3,571. 4,662. 1,900. PREPAID EXPENSE NOTE RECEIVABLE - BOCA LOAN RECEIVABLE - EMPLOYEES 6,562. SCHEDULE L OTHER ASSETS STATEMENT 14 DESCRIPTION BEGINNING OF TAX YEAR END OF TAX YEAR LIFE LINE SYSTEM 18,750. 18,750. 17,250. 17,250. TOTAL TO SCHEDULE L, LINE 14 SCHEDULE L OTHER CURRENT LIABILITIES STATEMENT 15 DESCRIPTION BEGINNING OF TAX YEAR END OF TAX YEAR PAYROLL TAXES WITHHELD & ACCRUED ACCRUED WAGES & COMMISSION ACCRUED INTEREST SALES TAX PAYABLE ACCRUED PROFIT SHARING PAYROLL WITHHELD - MISCELLANEOUS FEDERAL ACCRUED TAXES 16,234. 7,097. 165. 10,000. 979. 1,909. 21,302. 7,574. 256. 116. 5,000. 302. o . 1~1nn1?~ 7nh?,n ,,100 12 STATEMENT(S) 12, 13, 14, 15 1999.08200 JET VAC SERVICE AND EQUIPME 33100 1 JET VAC SERVICE AND EQUIPMENT 'INC STATE ACCRUED TAXES 23-1914288 TOTAL TO SCHEDULE L, LINE 18 2,944. 39,328. o. 34,550. SCHEDULE L OTHER LIABILITIES STATEMENT 16 DESCRIPTION BEGINNING OF TAX YEAR END OF TAX YEAR DEFERRED CORPORATE TAX 7,711. o. TOTAL TO SCHEDULE L, LINE 21 7,711. o. SCHEDULE M-1 EXPENSES RECORDED ON BOOKS BUT NOT DEDUCTED ON RETURN STATEMENT 17 DESCRIPTION AMOUNT PENALTIES 102. 102. TOTAL TO SCHEDULE M-1, LINE 3 SCHEDULE M-1 INCOME RECORDED ON BOOKS BUT NOT INCLUDED ON RETURN STATEMENT 18 DESCRIPTION AMOUNT TOTAL TO SCHEDULE M-1, LINE 5 7,711. 7,711. WRITE OFF OF DEFERRED TAXES FROM C CORP SCHEDULE L ANALYSIS OF TOTAL RETAINED EARNINGS PER BOOKS STATEMENT 19 DESCRIPTION AMOUNT BALANCE AT BEGINNING OF YEAR - SCHEDULE L, LINE 24, COLUMN (B) NET INCOME PER BOOKS - SCHEDULE M-1, LINE 1 DISTRIBUTIONS OTHER INCREASES (DECREASES) 281,661- 28,078. O. BALANCE AT END OF YEAR - SCHEDULE L, LINE 24, COLUMN (D) 309,739. 15100124 706230 33100 13 STATEMENT(S) 15, 16, 17, 18, 19 1999.08200 JET VAC SERVICE AND EQUIPME 33100__1 Shareholder's Share of Income, Credits, Deductions, etc. ~ See separate instructions. For calendar year 1999 or tax year and endin Cor oration's identi in number.... 23 Corporation's name, address, and ZIP code .SCHEDULE 'K-1 (Form 1120S) Department of ttle Treasury Internal Revenue Service be innin Shareholder's identifying number ...... Shareholder's name, address, and ZIP code 187 16 6525 OMS No. 1545-0130 1999 1 14288 ZORA BOWMAN ET VAC SERVICE AND EQUIPMENT INC 76 GREENSPRING DRIVE HREE LONG LANE MECHANICS BURG PA 17055 CHANICSBURG PA 17055 A Shareholder's percentage of stock ownership for tax year (see Instructions for Schedule K-l) .................................................... 59 . 002808% B Internal Revenue Service Center where corporation filed its return .. PHILADELPHIA . P A C Tax shelter registration number (see Instructions for Schedule K-1) ... ........ .............. ......... ..... ............. .... ........ o Check annlicable boxes: III D Finai K.l 12' D Amended K.1 911741 '1-16-99 .. ~ d ~ E o o .E (a) Pro rata share items 1 Ordinary income (loss) from trade or business activities 2 Net income (loss) from rental real estate activities ................................... 3 Net income (loss) from other rental activities .......... 4 Portfolio income (loss): a Interest b Ordinary dividends . ..................... ............. c Royalties ........ d. ........ .... ....... ........ ....... ..... ....... ............ .... .................... d Net short-term capital gain (loss) . Net long-term capital gain (loss): (1) 28% rate gain (loss) . .................... ....... .......... . (2) Totalforyear ............................ ........ 1 Other portfolio income (loss) (attach schedule) ... .... ...... .............. 5 Net section 1231 gain (loss) (other than due to casualty or theft) ... ........ .... .... 6 Other income lIoss\ (attach schedulel ........................ 7 Charitable contributions (attach schedule) .....SE;E;...S~bTEM;E;N~.. 8 Section 179 expense deduction 9 Deductions related to portfolio income (loss) (attach schedule) 10 Other deductions lattach schedule I 11a Interest expense on investment debts ...... ... ... ... ....... .......... ... ........ b (1) Investment income included on lines 4a, 4b, 4c, and 4f above ...... ....... ....... (2\ Investment exoenses included on line 9 above 12. Credltforalcohol used as fuel....... ........... b Low-jncome housing credit: (1) From section 42(j)(5) partnerships for property placed in service before 1990 ................. .................. .......... (2) Other than on line 12b(1) for property placed in service before 1990 ........... ...... ................................................... (3) From section 42(j)(5) partnerships for property placed in service after 1989 ..... ................................... (4) Other than on line 12b(3) for property placed in service after 1989......................... ........ c Qualified rehabilitation expenditures related to rental real estate activities ......................... ........... ............. ................ d Credits (other than credits shown on lines 12b and 12c) reiated to rental real estate activities.. ............................................. e Credits related to other rental activities 13 Other credits. JWA For Paperwork Reduction Act Notice, see the Instructions for Form 11208. .. c: o t; ~ " ~ c ~- ~~ E~ t)~ ~~ >- ~ .. - '6 ~ () 1 2 3 ... 4a 4b 4c 4d (b) Amount 7 269. (c) Form 1040 filers enter the amount in column Ibl on: } See pages 4 and 5 of the Shareholder's Instructions for ScheduleK-1 (Form 1120S). 1 755. Sch. 8, Part I, line 1 Sch. B, Part II, line 5 Sch. E, Part I, line 4 Sch. D, line 5, col. (f) .11\ e12\ 41 Sch. D, fine 12, col. (g) Sch. D, line 12, col. (D (Enter on applicable line of your rettJrn.) 5 6 7 8 9 10 11. bll\ b(2\ 12. See Shareholder's Instructions for Schedule K.1 (Form 1120S~ (Enter on appl!cable line of your return.) 178. 6 625. Sch. A, fine 15 or 16 } See page 15 of the Shareholder's Instructions for Schedule K.1 (Form 1120S). Form 4952, line 1 1 755 .l..\ See Sharenolder's Instructions I' r for 8chedule K-1 (Form 11208). Form 6478, line 10 bill b12\ b13\ Form 8586, fine 5 bl41 12c 12d 12e 13 See page 7 of the Shareholder's Instructions for Schedule K~1 (Form 11208). Schedule K-l (Form 11205) 1999 15100124 706230 33100 14 SHAREHOLDER NUMBER 1 1999.08200 JET VAC SERVICE AND EQUIPME 33100__1 JET VAC SERYICE,AND EQUIPMENT INC 23-1914288 Schedule K-l {Form 1120S1 {19991 Paae 2 . (c) Form 1040 filersenter (a) Pro rata share items (b) Amount the amount in column (b) on: ~ 14 a Depreciation adjustment on property placed in service after 1986 14a 5 283. ~E See page 7 of the ~~ Adjusted gain or loss 14b ~'" b ............. Shareholder's ~m _ u Depletion (other than oil and gas) 14c Instructions for ~~ c ..... ....... ~~ E- d (1) Gross income from oil, gas, or geothermal properties dIll Schedule K-l (Form t;~ 1120S) and ~- (2) Deductions allocable to oil, gas, or geothermal properties dl21 :ca... .......... .... ........ Instructions for <(~ Other adiustments and tax nreference items (attach schedule) ..STMT... 14e 181. Form 6251 c- e 15 a Type of income ~ Form 1116, Check boxes 0 b Name of foreign country or U.S. possession ~ } w x Total gross income from sources outside the United States (attach schedule) 15c Form lt16,Partl ~ c ... l- e d Total applicable deductions and losses (attach schedule) 15d '" ~ D Paid D ';~~;~~d .~ e Total foreign taxes (check one): 15e Form 1116, Part" LL f Reduction in taxes available tor credit (attach schedule) ............ 15t Form 1116, Part III " Other forei"n tax information (attach schedule) . ,," See Instructlons for Form 1116 16 Section 59(e)(2) expenditures: a Type ~ See Shareholder's Instructions b Amount 16b for Schedule K.' (Form '12OS~ ........... .......... 17 Tax.exempt interest income .......... ......................... 17 Form 1040, line 8b 18 Other tax-exempt income ................ ..........SEE ...STA.TEMENT.. 18 4 550. ] ~ 19 Nondeductible expenses ......HHHHH ..H.S.E.E. S?:'A.?:'EMENT 19 590. w Seepagas7 and 8 efthe r; Sharehelder's lnstructlens fer (5 20 Property distributions (including cash) other than dividend distributions ScheduleK-1(Ferm 11205). reported to you on form t099-DIV 20 21 Amount of loan repayments for "Loans From Shareholders" 21 22 Recapture of low-income hOUSing credit } a From section 42(i)(5) partnerships .... .................... .................. 22a Form 8611, line 8 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): e 0 " ~ E ~ .2 .!; ~ e w E w Q. 0. :J Ul 911742 11.1e-99 15100124 706230 33100 15 SHAREHOLDER NUMBER 1 1999.08200 JET VAC SERVICE AND EQUIPME 33100 1 JE~ VAC SERVICE AND EQUIPMENT'INC 23-1914288 SCHEDULE K-l CHARITABLE CONTRIBUTIONS DESCRIPTION AMOUNT SHAREHOLDER FILING INSTRUCTIONS CHARITABLE CONTRIBUTIONS - 50 % LIMIT 178. SEE FORM 1040 INSTRUCTIONS TOTAL TO SCHEDULE K-l, LINE 7 178. SCHEDULE K-l OTHER ADJUSTMENTS AND TAX PREFERENCE ITEMS DESCRIPTION AMOUNT SHAREHOLDER FILING INSTRUCTIONS ACCELERATED DEPRECIATION OF REAL PROPERTY - PRE 1987 181. SEE FORM 1040 INSTRUCTIONS TOTAL TO SCHEDULE K-l, LINE 14E 181. SCHEDULE K-l OTHER TAX-EXEMPT INCOME DESCRIPTION AMOUNT SHAREHOLDER FILING INSTRUCTIONS WRITE OFF OF DEFERRED TAXES FROM C CORP TOTAL TO SCHEDULE K-l, LINE 18 4,550. 4,550. SCHEDULE K-l NONDEDUCTIBLE EXPENSES DESCRIPTION AMOUNT SHAREHOLDER FILING INSTRUCTIONS PENALTIES 60. EXCLUDED MEALS AND ENTERTAINMENT EXPENSES 530. SEE FORM 1040 INSTRUCTIONS TOTAL TO SCHEDULE K-l, LINE 19 590. 16 Shareholder 1 15100124 706230 33100 1999.08200 JET VAC SERVICE AND EQUIPME 33100 1 Shareholder Number: Shareholder Name: 1 Shareholder Basis Worksheet Year Ended: DECEMBER 31, 1999 S Corporation Name: ZORA BOWMAN Shareholder ID Number: Ownershi Percenta e: 187-16-6525 59.002808 % JET VAC SERVICE AND E UIPMENT INC S Corporation 10 Number: 23-1914288 Stock Basis 1. a. Stock basis, beginning of year (Not less than zero) . b. Additional capital contributions 2. Increases: a. Ordinary income from trade or business b. Net income trom rental real estate activities c. Net income from other rental activities d. Net short-term capital gains ... e. Net long~term capital gains 1. Other portfolio income g. Net gain under Section 1231 h. Other income i. Tax exempt interest income. j. Other tax-exempt income 1<.. Section 179 recapture on dispositions I. Depletion (other than oil and gas) in excess of basis m Other increases. ............. I 8,615.\ 8.615.1 7 269. 1 755. 4 550. 3. To 4. T 5. L 6. S 7. Decreases: a. Ordinary losses from trade or business b. Net losses from rental real estate activities c. Net losses from other rental activities. d. Net shorHerm capital losses e. Net long-term capital losses . 1. Dther portfolio losses g. Net losses under Section 1231 h. Other deductions i. Charitable contributions j. Section 179 expense deduction k. Deductions related to portfolio income (lOsses) I. Interest expense on investment debts m. Foreign taxes paid or accrued n. Section 59(0) expenditures Q. Nondeductible expenses p. Oil and gas depletion ... q. Other decreases. I I I I tal increases (Add lines 2(a) through 2(m)) 13 574. otal increases to stock basis (Add lines 1 and 3) 22.189. ess: Distributions ...... ubtract line 5 from line 4 (Not less than zero) 22 189. 178. 6 625. 590. r. 8. To 9. N 10. Le 11. St I I I I 7 393. Unallowed prior year's losses and deductions ,.......... tal decreases (Add lines 7(a) through 7(r)) . 7 393. et increases or decreases to basis (Subtract line 8 from line 6) 14 796. 5S: Net increases applied \0 debt basis (Not to exceed line 9 and not less than zero) ...... ".... ock basis, end of year (Subtract line 10 from line 9) (Not less than zero) 14 796. 912101 05-15-99 15100124 706230 33100 16.1 1999.08200 JET VAC SERVICE AND EOUIPME 33100 1 Shareholder Number: Shareholder Name: Shareholder Basis Worksheet, Continued 1 Year Ended: DECEMBER Shareholder ID Number: 31, 1999 187-16-6525 ZORA BOWMAN Debt Basis 12. Debt basis, beginning of yea 13. Loans made during the yea 14. Restoration of debt basis (fr 15. Subtotai (Add lines 13 and 16. Less: Loan repayments. 17. Gain from loan repayments 18. Other adjustments: r (Not iess than zero) ............. 6 000 . r ................. .............. .......... ........................... ........................ I 100 000 . om line 10) .................... .......... .............. .. ........... ..... ................ I 14) ....................... .......... ............. ....... ............ ............................................. 100 000 . .................. ............................................ ............................................. 18 000 . ..... ...... ................. .... I I I I 15, 16, 17 and 18) ...................... ........................................ 88 000 . and deductions (Not to exceed line 19) (Not less than zero) ......... less than zero) ........................................................... 88 000 . debt basis, end of year (Add lines 11 and 21) (Not iess than zero) ................ 1n2 7% . 19. Subtotal (Combine lines 12, 20. Applied against excess loss 21. Debt basis, end of year (Not 22. Total shareholder stock and Gain on Distributions 23. Distributions ... .......... ......... ..... ........... ....... .... ....... ......... .... ....... ... ..... 24. Less: Basis before distributions 25. Enter excess of line 23 over line 24 (capital gain) ............................. .............................. ...............................................................................................1 Carryover Total Debt Basis Applied Disallowed Against Excess Losses Losses and Deductions 7 393. 7 393. 26. Beginning of year ............. .............. ................... 27. Add: Losses and deductions this year 28. Less: Applied this year ............... ......... .................... 29. End of year (Not less than zero) ...................................................... PRINCIPAL AMOUNT OF DEBT OWED TO SHAREHOLDER, ADJUSTED FOR LOANS MADE OR PAID DURING THE YEAR 88,000. 912102 10-25-99 16.2 1999.08200 JET VAC SERVICE AND EOUIPME 33100 1 15100124 706230 33100 SCHEDULE K-1 (Fqrm 11205) Shareholder's Share of Income, Credits, Deductions, etc. ..... See separate instructions. For calendar year 1999 or tax year and endin Cor oration's identi in number.... 23 Corporation's name, address, and ZIP code OMS No. '545-0130 Department of the Treasury Internal Aevenue Service 1999 be innin Shareholder's identifying number .... Shareholder's name, address, and ZIP code 187-36-7751 1 14288 STEVE BOWMAN ET VAC SERVICE AND EQUIPMENT 2999 DICKINSON AVENUE HREE LONG LANE CAMP HILL PA 17011 ECHANICSBURG PA A Shareholder's percentage of stock ownership for tax year (see Instructions for Schedule K-1) B Internal Revenue Service Center where corporation filed its return ~ PHILADELPHIA, PA C Tax shelter registration number (see Instructions for Schedule K-1) .................. ...... ... .... .... ..... .... .... .... .... ........ ....... .... ........ D D INC 17055 ...............~ 40.997192% 0 Check aoolicable boxes: '1' Final K-l 121 Amended K-1 (a) Pro rata share items (b) Amount (e) Form 1040 fiiers enter the amount in column Ibl on: 1 Ordinary income (loss) from trade or business activities 1 5 050. 2 Net income (loss) from rental real estate activities 2 } s.. P"" 4 Md , ofth. .......................... Shareholder's Instructions for 3 Net income (Joss) from other rental activities ... .......................... 3 Schedule K.1 (Form 1120S). 4 Portfolio income (loss): a Interest ............... ................................... 4a 1 220. Sch. B, Part I, line 1 " b Ordinary dividends. 4b Sch. B, Part 1I,Iine 5 0 0 Royalties Sch. E, Part I. line 4 d- e 4c ~ d Net short-term capital gain (loss) 4d Sch. D, line 5, col. (f) E 0 Net long-term capital gain (loss): u e . .E (1) 28% rate gain (loss) ell1 Sch. D, line 12, col. Ig) .......................... (2) Total for year e'2' Sch. D,line 12, col. If) I Other portfolio income (loss) (attach scheduie) 41 (Enter on applicable line of your return.) See Shweholder's InstNctions 5 Net section 1231 gain (loss) (other than due to casuaity or theft) 5 for 8cheduleK-1 (Form 11208). 6 0" .;", '0' ... 6 (Enter on applicable line of your return.) Other income loss attach schedule .................................. 0 7 Charitable contributions (attach schedule) .....SEE...Sn'I'EMENT.. 7 123. Sch. A,line 15 or 16 " 0 Section 179 expense deduction 4 604. t; B ......,............................. ................. 8 } S"p'e"oflh.Shw.hold..', ~ 9 Deductions related to portfolio income (loss) (attach schedule) . 9 Instructions for Schedule K.1 'C (Form 11208). ~ Other deductions 'attach schedule' ................................... C 10 10 ~- l1a Interest expense on investment debts l1a Form 4952, line 1 ~w E~ bIll 1 -~ b (1) Investment income included on lines 4a, 4b, 4c, and 4f above 220. w~ 11 S.. 8h""0Id..', ",IN""o", ~E '2\ Investmentexnenses included on line 9 above .................... b'2' for Schedule K-1 (Form 11208). ~ 12. Credit for alcohol used as fuel ....................................... 12a Form 647B, line 10 b Low.income housing credit: (1) From section 42(j)(5) partnerships for property placed in service before 1990 ...................................,....................................... bIl' (2) Other than on line 12bll) for property placed in service before 1990 ....,......................... b12' (3) From section 42(i)15) partnerships for property placed in Form 8586, line 5 J!l service after 1989 b'3' 'is ........,....... ~ (4) Other than on line 12b(3) for property placed in service after U 1989 b'4' e Qualified rehabilitation expenditures related to rental real estate activities 12c d Credits (other than credits shown on lines 12b and 12c) related to rental real estate activities 12d See page 7 of the Shareholder's ......... ............................,...-. ..................... Instructions for 8chedule K-1 e Credits related to other rental activities 12e (Form 1120S). 13 Other credits. 13 JWA For Paperwork Reduction Act Notice, see the Instructions for Form 11208. Schedule K-l (Furm 1120S) 1999 911741 11-'6-99 17 SHAREHOLDER NUMBER 2 1999.08200 JET VAC SERVICE AND EQUIPME 33100__1 15100124 706230 33100 JET VAC SERVICE AND EQUIPMENT I~C , , 23-1914288 Schedule K-1 (Form 1120S\ (1999\ Paoe 2 (a) Pro rata share items (b) Amount (c) Form 1040 filers enter the amount in column (b) on: ~ 14. Depreciation adjustment on property placed in service after 1986 14. 3 670. ~E See page 7 of the ~'" b Adjusted gain or loss 14b ~- ..... ........... ............... Shareholder's ~~ _ u Depletion (other than oil and gas) 14c Instructions for ~~ c .... ~~ E- d (1) Gross income from oil, gas, or geothermal properties dll\ Schedule K-1 (Form -"" ~~ ............. 1120S) and ~- (2) Deductions allocable to oil, gas, or geothermal properties d12' :.cD.... ......... Instructions for "",'" ~ Other adiustments and tax oreference items (attach schedule) .STMT.... 14e 126. ' Form 6251 f- e 15 . Type of income ~ Form 1116, Check boxes 0 b Name of foreign country or U.S. possession ~ } ~ x Total gross income from sources outside the United States (attach schedule) 15' Form 1116, Part I m , t- o d Total applicable deductions and losses (attach schedule) 15d Cl ~ D Paid D Accrued 'il e Total foreign taxes (check one): 15e Form 1116, Part II " ... 0 1 Reduction in taxes available for credit (attach schedule) 151 Form 1116,Partlll u. . Other foreinn tax information (attach schedule\ . 1<. See InstNctions lor Form 1118 16 Section 59(e)(2) expenditures: a Type ~ SeeShareholder'slnstNclions b Amount 18b fOf ScheduleK-1 (Form 11205). 17 Tax.exempt interest income .................... 17 Form 1040, iine 8b 18 Other tax-exempt income ..........................S:E::E:...STA'l:':E:~:E:N'l:'.. 18 3 161. } ~ 19 Nondeductible expenses .............................S.:E:.:E:....S.TAT:E:.~:E:.N',l:'.. 19 411. See pages 7 and 8 of the '" i Shareholder's InslNctlons for 5 20 Property distributions (including cash) other than dividend distributions Schedule K-1 (Form' 120S). reported to you on Form 1099-DIV ..'" .......... 20 21 Amount of loan repayments for 'Loans From Shareholders" 21 22 Recapture of low-income housing credit: } . From section 42(j)(5) partnerships .......... 228 Form 8611, line 8 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): 0 0 '" m E " .g -= :e 0 ~ E ~ Ii "- ~ '" 911742 1'.16-99 15100124 706230 33100 18 SHAREHOLDER NUMBER 2 1999.08200 JET VAC SERVICE AND EQUIPME 33100 1 JET VAC SERVICE' AND EQUIPMENT INC 23-1914288 SCHEDULE K-1 CHARITABLE CONTRIBUTIONS DESCRIPTION CHARITABLE CONTRIBUTIONS - 50 % LIMIT AMOUNT SHAREHOLDER FILING INSTRUCTIONS 123. SEE FORM 1040 INSTRUCTIONS TOTAL TO SCHEDULE K-1, LINE 7 123. SCHEDULE K-1 OTHER ADJUSTMENTS AND TAX PREFERENCE ITEMS DESCRIPTION AMOUNT SHAREHOLDER FILING INSTRUCTIONS ACCELERATED DEPRECIATION OF REAL PROPERTY - PRE 1987 126. SEE FORM 1040 INSTRUCTIONS TOTAL TO SCHEDULE K-1, LINE 14E 126. SCHEDULE K-1 OTHER TAX-EXEMPT INCOME DESCRIPTION AMOUNT SHAREHOLDER FILING INSTRUCTIONS WRITE OFF OF DEFERRED TAXES FROM C CORP 3,161. TOTAL TO SCHEDULE K-1, LINE 18 3,161. SCHEDULE K-1 NONDEDUCTIBLE EXPENSES DESCRIPTION AMOUNT SHAREHOLDER FILING INSTRUCTIONS PENALTIES 42. EXCLUDED MEALS AND ENTERTAINMENT EXPENSES 369. SEE FORM 1040 INSTRUCTIONS TOTAL TO SCHEDULE K-1, LINE 19 411. 19 Shareholder 2 15100124 706230 33100 1999.08200 JET VAC SERVICE AND EQUIPME 33100__1 Shareholder Number: Shareholder Name: 2 , , Shareholder Basis Worksheet Year Ended: DECEMBER 31, 1999 S Corporation Name: STEVE BOWMAN Shareholder 10 Number: Ownershi Percenta e: 187-36-7751 40.997192 % JET VAC SERVICE AND E UIPMENT INC S Corporation 10 Number: 23 1914288 Stock Basis 5.986 '1 5.986.1 1. a. Stock basis, beginning of year (Not less than zero) . b. Additional capital contributions 2. Increases: a. Ordinary income from trade or business b. Net income from rental real estate activities c. Net income from other rental activities d. Net short-term capital gains. ..................... e. Net long~term capital gains .......................... f. Other portfolio income g. Net gain under Section 1231 h. Other income i. Tax exempt interest income . .................... j. Other tax-exempt income k. Section 179 recapture on dispositions ........................ l. Depletion (other than oil and gas) in excess of basis m. Other increases' 5 050. 1 220. 3 161. 3. To 4. To 5. Le 6. Su I I I I tal increases (Add lines 2(a) through 2(m)) ....... ...................................... 9 431. tal increases to stock basis (Add lines 1 and 3) .................. ........ 15 417. ss: Distributions ........................... ......... btract line 5 from line 4 (Not less than zero) ........ .......... 15 417. 7. Decreases: a. Ordinary losses from trade or business b. Net losses from rental real estate activities c. Net losses from other rental activities d. Net shorHerm capital losses e. Net long~term capital losses . f. Other portfolio losses . ........................... . g. Net losses under Section 1231 h. Other deductions i. Charitable contributions ... ............. j. Section 179 expense deduction k. Deductions related to portfolio income (losses) I. Interest expense on investment debts m. Foreign taxes paid or accrued n. Section 59(e) expenditures o. Nondeductible expenses p. Oil and gas depletion. Q. Other decreases' 123. 4 604. 411. r. 8. To 9. Ne 10. Le 11. St I T I I 5 138. Unallowed prior year's losses and deductions tal decreases (Add lines 7(a) through 7(r)) . ......... ............. 5 138. t increases or decreases to basis (Subtract line 8 from line 6) 10 279. ss: Net increases applied to debt basis (Not to exceed line 9 and not less than zero) ................. ock basis, end of year (Subtract line 10 from line 9) (Not less than zero) 10 279. 912'01 05-15-99 15100124 706230 33100 19.1 1999.08200 JET VAC SERVICE AND EQUIPME 33100 1 Shareholder Basis Worksheet, Continued Shareholder Number: 2 Shareholder Name: STEVE BOWMAN Year Ended: DECEMBER 31, 1999 Shareholder ID Number: 187 36 -7 7 51 Debt Basis 12. Debt basis, beginning of yea 13. Loans made during the year 14. Restoration of debt basis (fr 15. Subtotal (Add lines 13 and 1 16. Less: Loan repayments. 17. Gain from loan repayments 18. Other adjustments: r (Not less than zero) .......... ........... .............. 5 000 . I .................................... ..... .................................. ........... I om line (0) .................................. ..... .. .................... ................. 4) ............................................... ........... ........... .................................. .......... ....................... ...................... ........................................................ ........................... ......... ..... .......... I I I I 15, 16. 17 and (8) .................................................. ............ 5 000 . and deductions (Not to exceed line 19) (Not less than zero) ... less than zero) ......................................... ............................... 5 000 . debt basis, end of year (Add lines 11 and 21) (Not less than zero) ........... .. .............. 15 27Q. 19. Subtotal (Combine lines 12, 20. Applied against excess loss 21. Debt basis, end of year (Not 22. Total shareholder stock and Gain on Distributions 23. Distributions 24. Less: Basis before distributions 25. Enter excess of line 23 over line 24 (capital gain) ..........................................................dd I Carryover Total Debt Basis Applied Disallowed Against Excess losses Losses and Deductions 5 138. 5 138. 26. Beginning of year ............................................................ .......... 27. Add: Losses and deductions this year 28. Less: Applied this year ...... .................. ...... ..d..................................................... 29. Endo! year (Not less Ihan zero) ............... .. ................ ........................... PRINCIPAL AMOUNT OF DEBT OWED TO SHAREHOLDER, ADJUSTED FOR LOANS MADE OR PAID DURING THE YEAR 5,000. 912102 10-25-99 15100124 706230 33100 19.2 1999.08200 JET VAC SERVICE AND EQUIPME 33100 1 Allocation Summary Worksheet SUMMARY JET"VAC SERVICE AND EQUIPMENT INC Alabama. Alaska Arizona .................................. ..... Arkansas ............ ........ ....... ... .... ..... ............ ...... .. ..... ...... ...... ............ ..... California Colorado Connecticut Delaware District of Columbia. florida Georgia ..... ..... ........................................................... ............. Hawaii .......... .................... ........... Idaho Illinois. Indiana Iowa Kansas Kentucky ................... ...... ........................ Louisiana ........ ......... .................................................................... Maine.............................................................................. Maryland .................... .................................... Massachusetts. ................... ............................... Michigan ...................... .............. .............. Minnesota ....... .......... ............. .......... . ..................... .......... Mississippi Missouri ................ ..................... Montana Nebraska ....................................... .............. Nevada New Hampshire New Jersey ....... ...... .................................... New Mexico New York North Carolina ........ ............................ ............ ................. ......................... . ........... North Dakota. .. ..................... ............ Ohio Oklahoma Oregon Pennsylvania.. . Rhode Island South Carolina South Dakota Tennessee .. Texas Utah ......... ..................... ............................. Vermont Virginia Washington West Virginia ........... ............ ........................ .................... Wisconsin Wyoming .................................................................................................... Foreign Other Total 810871 10.08.98 15120124 706230 33100 092 JET VAC SERVICE AND EQUIPMENT 33100_2 1998 23-1914288 WITHIN EVERYWHERE O. o . o . CARRYOVER DATA JET VAC SERVICE AND E UIPMENT INC Employer Indent!!ica!on Number 23-1914288 Name Based on the information provided with this return, the following are possible carryover amounts to next year. NET POSITIVE ACE ADJUSTMENT 819341 10-12-98 15120124 706230 33100 092 JET VAC SERVICE AND EQUIPMENT 44.216. 33100 2 'oem'11208 . ~ Oo~ X etum for an S Corporation' [V C . ,~\iOiii)e rm unless the corporation has timely filed / / I r-Form 53 to electto be an S corporation. "EX~ENSI GRANTED TO 09 17 01 and endin . OMS Nc\ 1545-013lit Department of the Treasury Internal Revenue Service 2000 For calendar ear 2000 or tax ear be innin A Effective date of election Name as an S corporation Use IRS label. Other- wise, print or type. City or town, state, and ZIP code C Employer identification number 01 01 1999 B Business code no. (see pages 29-31) JET VAC SERVICE AND E UIPMENT INC Number, street, and room or suite no. (If a P.O. box, see page 11 of the instructions.) THREE LONG LANE 235900 F Check applicable boxes: (1) D Initial return (2) D Final return G Enter number of shareholders in the corporation at end of the tax year (3) D Change in address 23-1914288 o Date incorporated 12 04 1973 E Total assets (see page 11) 525 768. (4) D Arnended return ......................~ 2 Caution: Include onlv trade or business income and exoenses on lines 1a throuoh 21. See the instructions for more information. 1 a Gross receipts or sales 1, 2 6 4 , 0 0 5 . b Less returns and allowances C Sal ~ 1c 1 264 005. & 2 Cost at goods sold (Schedule A, line 8) 2 920 007. E 3 Gross profit. Subtract line 2 from line 1c 3 343 998. 0 u 4 Net gain (loss) from Form 4797, Part II, line 18 (attach Form 4797) 4 .5 5 Other income (loss) (attach schedule) ...........................S'l'ATEl-;IENT ..l.. 5 4 943. 6 Total income floss\. Combine lines 3 throu~h'5" ~ 6 348 941. 7 Compensation of officers ........................STATEl-;IENT ..4.. 7 120 693. 8 Salaries and wages (less employment credits) 8 66 918. " 9 Repairs and maintenance 9 6 976. ~ 0 10 Bad debts 10 7 785. '" J!! 11 Rents 11 22 800. ~ 12 Taxes and licenses ... ... .S.T.A.T.E.l-;IE.NT 3 12 16 930. ~ .g 13 Interest ...................................................................T14~.T... 13 12 039. " 64 840. ~ 14 a Depreciation (if required, attach Form 4562) . .2 (; b Depreciation claimed on Schedule A and elsewhere on return 14b 1 62 683. => ~ c Subtract line 14b from line 14a 14c 2 157. " .~ 15 Depletion (Do not deduct oil and gas depletion.) 15 & .................................................. ~ 16 Advertising 16 857. " 17 Pension, profit-sharing, etc., plans 17 917. ~ 0 18 Employee benefit programs 18 38 291. '" u 19 Other deductions (attach schedule) ................................... ..............STATEMENT A.. 19 49 858. => " & 20 Total deductions. Add the amounts shown in the far right column for lines 7 through 19 ~ 20 346 221. a 21 Ordinarv jncome (loss) from trade or business activities. Subtract line 20 from line 6 21 2 720. 22 Tax: a Excess net passive income tax (attach schedule) 22.1 b Tax from Schedule 0 (Form 11205) 22b1 c Add lines 22a and 22b 22c l!l 23 Payments: a :2000 estimated tax payments and amount applied from 1999 return 23a ~ & b Tax deposited with Form 7004 23b E '" Credit for Federal tax paid on fuels (attach Form 4136) 23c .. c ...... a. " d Add lines 23a through 23c 23d ~ .. 24 Estimated tax penalty. Check if Form 2220 is attached ~ 24 x ~ 25 Tax due. If the total of lines 22c and 24 is larger than line 23d, enter amount owed. See instructions for depository method of payment ......................... ~ 25 26 Overpayment. If line 23d is larger than the total of lines 22c and 24, enter amount overpaid .....j................... .~ 26 27 Enter amount of line 26 vou want: Credited to 2001'estimated tax ..... Refunded ~ 27 Under penalties of perjury. I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and Sign belief, IllS true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here ~ Signature of officer I ~ Date Title Preparer's ~ Date Check if Preparer's Paid self- SSN or PTIN signature ernnloved D 178-38-3454 Preparer's ~~~~si~:;f~(or ~ WAGGONER, FRUTIGER & DAUB Use Only ~ploy'd). 5006 E TRINDLE RD SUITE 200 EIN 23-1583249 address, and Pho""o. (717) 506 ZIP coda MECHANICSBURG PA 17050-3649 1222 JWA 011701 12.04-00 For Paperwork Reduction Act Notice, see the separate instructions. Form 11208 (2000) 15080124 706230 33100 1 2000.08000 JET VAC SERVICE AND EQUIPME 33100 1 Form'1120S '2000' .TET VAC SERVICE AND EOUIPMENT INC 23-1914288 Pane 2 I Schedule A I Cost of Goods Sold Isee Daoe 16 at the instructions) 1 Inventory at beginning of year 1 10 011. 2 Purchases 2 208 807. 3 Cost of labor 3 356 232. 4 Additional section 263A costs (attach schedule) 4 5 Other costs (attach schedule) ......................... ... ..........SEIL.S.'l'ATEMENT ..5... 5 357 535. 6 Total. Add lines 1 through 5 6 932 585. 7 Inventory at end of year 7 12 578. 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 8 920 007. 9 a Check all methods used for valuing closing inventory: (i) [X] Cost as described in Regulations section 1.471-3 (ii) D Lower of cost or market as described in Regulations section 1.471-4 (iii) D Other (specify method used and attach explanation) ~ b Check if there was a writedown of 'subnormal" goods as described in Regulations section 1.471.2(c) c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) d If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing inventory computed under LIFO e Do the rules of section 263A (for property produced or acquired for resale) apply to the corporation? f Was there any change in determining Quantities, cost, or valuations between opening and closing inventory? ~D ~D lM..1 D Yes [X] No D Yes [X] No If "Yes' attach exnlanation. fSChedule B I Other Information Yes No 1 Check method of accounting: (a) D Cash (b) [X] Accrual (c) D Other (specify) ~ 2 Refer to the list on pages 29 through 31 of the instructions and state the corporation's principal: (a) Business activity ~ SALES AND SERVICE (b) Product or service ~ EOUIP SALES & MAINT 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 X 4 Was the corporation a member Of a controlled group subject to the provisions of section 1561? X 5 Check this box if the corporation has filed or is required to file Form 8264, Application for Registration of a Tax Shelter ~D 6 Check this box if the corporation issued publicly offered debt instruments with original issue discount ~D If so, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Oiscount 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 (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 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) ~D 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\ Foreinn Onerations of U.S. Corn orations to this return. See Schedule N for details. I SChedule K I Shareholders' Shares of Income Credits Deductions etc. ial Pro rata share items Ib\ Total amount 1 Ordinary income (loss) from trade or business activities (page l,line 21) 1 2 720. 2 Net income (loss) from rental real estate activities (attach Form 8825) ... PI a.l 2 3a Gross income from other rental activities b Expenses from other rental activities (attach schedule) I 3b I c Net income (loss) from other rental activities. Subtract line 3b from line 3a 3c 0> 4 Portfolio income (loss): 0 0 a Interest income ..STl\.T:E:MEN'J:'...6.. 4a 3 225. d. .. b Ordinary dividends 4b E 0 c Royalty income 4c 0 E d Net short-term capital gain (loss) (attach Schedule D (Form 1120S)) 4d e Net long-term capital gain (loss) (attach Schedule D (Form 1120S)): (1) 28% rate gain (loss) ~ (2) Total for year ~ 4e/2\ f Other portfolio income (loss) (attach schedule) 41 5 Net section 1231 gain (loss) (other than due to casualty or theft) (attach Form 4797) 5 6 Other income lIoss' 'attach schedule) 6 Form 1120S (2000) 011711 01-09-01 15080124 706230 33100 2 2000.08000 JET VAC SERVICE AND EQUIPME 33100 1 Forn11120S 12000\ JET VAC SERVICE .AND EOUIPMENT INC 23 -191_42 8 8 , Pane 3 I Schedule K I Shareholders' Shares of Income Credits Deductions etc. Icontinued) " (al Pro rata share items /b' Total amount c 7 Charitable contributions (attach schedule) .......... .......... . .....STAT.EMENT...7.. 7 225. 0 :g 8 Section 179 expense deduction (attach Form 4562) 8 ~ " 9 Deductions related to portfolio income (loss) (itemize) 9 ~ .... <> Other deductions (attach schedule) . 10 10 c_ l1a Interest expense on investment debts 11. ~ ~ Ee b (1) Investment income included on lines 4a, 4b, 4c, and 4f above l1b(1l 3 225. -~ ~- ~c >- f2\ Investment exnenses included on line 9 above l1b(2\ c 12. Credit lor alcohol used as a fuel (attach Form 6478) 12. b Low-income housing credit: (1) From partnerships to which section 42(j)(5) applies lor property placed in service before 1990 12bll1 " (2) Other than on line 12b(l) for property placed in service before 1990 12b(2\ ~ 12b/3\ 'i5 (3) From parlnerships to which section 42(j)(5) applies for property placed in service after 1989 ~ ~ (4) Other than on line 12b(3) lor property placed in service atter 1989 12bl41 () c Qualified rehabilitation expenditures related to rental real estate activities (attach Form 3468) 120 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 x 14a Depreciation adjustment on property placed in service after 1986 14. 5 292. ~~ >-E ~~ b Adjusted gain or loss 14b c_ ~- ~~ c Depletion (other than oil and gas) 140 cc 14d/11 ~ ~ d (1) Gross income from oil, gas, or geothermal properties ..52 ~ ~ (2) Deductions allocable to oil, gas, or geothermal properties 14d/21 ~ ~ .-0- ~ e Other adiustments and tax nreference items (attach schedule' 14e <( 15a Name of foreign country or U.S. possession .. b Gross income sourced at shareholder level 15b c Foreign gross income sourced at corporate level; (1) Passive 15cll\ (2) Listed calegories (attach schedule) 150121 " (3) General limitation . 150/31 ~ x d Deductions allocated and apportioned at shareholder level: III .... (1) Interest expense 15dfll c '" 15dl21 'ijj (2) Other 6 e Deductions allocated and apportioned at corporate level to foreign source income: u. (1) Passive 15el1\ (2) Listed categories (attach schedule) 15e/21 (3) Generallimita!ion ....................................... n t:::J,;~~;~et! 15e(31 f Total foreign taxes (check one): ~ DPaid 151 (] Reduction in taxes available for credit and nross income from all sources ;~tt~'~h'~~'h~~i~i~'\".'.'" 150 16 Section 59(e)(2) expenditures: a Type ~ b Amount ~ 16b 17 Tax-exempt interest income 17 18 Other tax-exempt income 18 ~ 19 Nondeductible expenses ..... ........................... STATEMJ;:.NT. ..8.. 19 380. ~ .<: ~ 20 Total property distributions (including cash) other than dividends reported on line 22 below 20 0 21 Other items and amounts required to be reported separately to shareholders (attach schedule) 22 Total dividend distributions paid from accumulated earnings and profits 22 23 Income (lass). (Required only il Schedule M-l must be completed.) Combine lines 1 through 6 in column (b). From theresult subtracl thesum 01 lines 7 throunh 11a 151 and 16b 23 5 720. Form 1120S (2000) 011721 11-29-00 3 2000.08000 JET VAC SERVICE AND EQUIPME 33100__1 15080124 706230 33100 FOfnt 11205 12000\ .TET VAC SERVICE ,AND EOUIPMENT INC , 23-1914288 Pane 4 I Schedul$ L I Balance Sheets Beninninn of tax vear End of tax Ileaf . Assets (~\- Ib) Ie) Idl 1 Cash 58 054. 108 974. 2 a Trade notes and accounts receivable 228 61l. 183 306. b Less allowance for bad debts 228 61l. 183 306. 3 Inventories 10 011. 12 578. 4 U.S. Government obligations 5 Tax-exempt securities 6 Other current assets __ STM.T 11 6 562. 4 682. 7 loans to shareholders 8 Mortgage and real estate loans 9 Other investments 10 a Buildings and other depreciable assets 1 380 456. 1 395 455. b Less accumulated depreciation 1 133 207. 247 249. 1 194 977 . 200 478. 11 a Depletable assets b Less accumulated depletion 12 Land (net of any amortization) 13 a Intangible assets (amortizable only) b less accumulated amortization 14 Other assets .................S'l'M'l' .1.2.. 17 250. 15 750. 15 Total assets 567 737. 525 768. Liabilities and Shareholders' Equity 16 Accounts payable 52 200. 25 339. 17 Mortgages, notes, bonds payable in less than 1 year 46 094. 43 075. 18 Other current liabilities .....S'l'M'l'.JJ 34 550. 39 095. t9 loans from shareholders 96 483. 81 483. 20 Mortgages, notes, bonds payable in 1 year or more 14 070. 4 026. 2t Other liabilities 22 Capital stock 14 60l. 14 60l. 23 Additional paid-in capital 24 Retained earnings ..........S.'l'M.T. ..l4. 309 739. 318 149. 25 Adjustments to shareholders' equity 26 less cost of treasury stock ) 27 Total liabilities and shareholders' enuitv .. 567 737. 525 768. I Schedule M-1 I Reconciliation of Income (Loss) per Books With Income (Loss) per Return (You are not required to comnlete this schedule if the total assets on line 15 column Id\. of Schedule l are less than $25 000.) 1 Net income (loss) per books 8 410. 5 Income recorded on books this year not included 2 Income included on Schedule K, lines 1 on Schedule K,lines 1 through through 6, not recorded on books this year 6 (itemize): (itemize): a Tax-exempt interest $ 3 Expenses recorded on books this year not 6 Deductions included on Schedule K, lines 1 included on Schedule K, lines 1 through t la, 151, and 16b, not charged through t la, 151, and t6b (itemize): against book income this year (itemize): a Depreciation $ a Depreciation $ 3,070. b Travel and entertainment $ 380. 3 070. 380. 7 Add lines 5 and 6 3 070. 4 Add lines t throunh 3 8 790. 8 Income loss\ ISchedule Kline 23\, line 4 less line 7 5 720. I Schedule M-2 I Analysis of Accumulated Adjustments Account, Other Adjustments Account, and Shareholders' Undistributed Taxable Income Previouslv Taxed (a) Accumulated (b) Other adjustments (c) Shareholders' undistributed adjustments account account taxable income previously taxed 1 Balance at beginning of tax year 10 474. 2 Ordinary income from page 1,line 21 2 720. 3 Other additions S.'l'.M.T....9.. 3 225. 4 Loss from page 1,line 21 .......................... I, 5 Other reductions S'l'M'l' ..JO.. I, 605 II 6 Combine lines 1 through 5 15 814. 7 Distributions other than dividend distributions 8 Balance at end of tax vear. Subtract line 7 from line 6 15 814. 0'1731 11-29-00 15080124 706230 33100 4 Form 1120S (2000) 2000.08000 JET VAC SERVICE AND EQUIPME 33100 1 4562 , OMS No, 1545-0172 . F~m Depreciation and Amortization '2000 (Including Information on Listed Property) OTHER Department of the Treasury Attachment Internal Revenue Service (99) ~ See separate instructions. ..... Attach this form to your return. Sequence No. 67 Name(s) shown on return Business Of aclivity 10 which this form relates Identifying number JET VAC SERVICE AND EOUIPMENT INC OTHER DEPRECIATION 23 1914288 I Part 11 Election To Expense Certain Tangible Property (Section 179) Note: If you have any "listed property,"complete Part V before you complete Part I.) 1 Maximum dollar limitation. If an enterprise zone business, see instructions ". 1 20 000. 2 Total cost of section 179 property placed in service. See instructions .... 2 318. .......... 3 Threshold cost of section 179 property before reduction in limitation... 3 $200,000 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0. 4 O. ..>>... 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing seoaratelv see instructions ....... .......... ......... ......... 5 20 000. 6 (a) Description of property (b) Cost (business use only) (c) Elected cost 7 Listed property. Enter amount from line 27 ........ ........ ............. ....... I 7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7. ..... 8 9 Tentative deduction. Enter the smaller of line 5 or line B ..... ............ 9 10 Carryover of disallowed deduction from 1999 ...... 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 11 20 000. 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 12 13 Carryover of disallowed deduction to 2001. Add lines 9 and 10, less line 12 ~113 I . Note: Do not use Part 1/ or Part /II below for listed property (automobiles, certam other vehIcles, cellular telephones, certam computers, or property used for entertainment, recreation, or amusement). Instead, use Part V for listed property. Part II MACRS Depreciation For Assets Placed in Service Only During Your 2000 Tax Year (Do not include listed pro ert .) Section A - General Asset Account Election 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 instructions ............................................................................................................................................ D Section B - General Depreciation System (GDS) (See instructions.) (b) Month and (c) Basis for depreciation (d) Recovery (a) Classification of property year placed {business/investment use (e) Convention (flMathod (g) Depreciation daduction insarvice only-saainstructions) period 15 a 3-vear orooertv b 5-vear orooertv c 7-vear orODertv 318. 7 HY bDB 45. d 10-vear proDertv e 15-vear Dronertv 1 20-vear orooertv a 25-vear orODertv 25vrs. S/L I 27.5 vrs. MM S/L h Residential rental property 27.5 vrs. I MM S/L i Nonresidential real property I 39 vrs. MM S/L I MM S/L 16 a Class life I S/L b 12.vear 12 vrs. S/L c 40-year I 40yrs. MM S/L l.part.1II1 Other Depreciation (Do not include listed property.) (See instructions.) 17 GDS and ADS deductions for assets placed in service in tax years beginning before 2000 17 2 112. 18 Property subject to section 168(1)(1) elaction ........ 18 19 ACRS and other depreciation. 19 I Partlvl Summary (See instructions.) 20 Usted property. Enter amount from tine 26 . . . . . . . . . . . 20 21 Total. Add deductions from line 12, lines 15 and 16 in column (g), and lines 17 through 20. Enter here and on the appropriate lines of your return. Partnerships and S corporations - see instructions 21 2 157. 22 For assets shown above and placed in service during the current year, enter the I 221 nortian of the basis attributable to section 263A costs Section C - Alternative Depreciation System (ADS) (See instructions.) LHA For Paperwork Reduction Act Notice, see the separate instructions. Form 4562 (2000) ~~~i8-1o 5 15080124 706230 33100 2000.08000 JET VAC SERVICE AND EQUIPME 33100__1 Form4562(2000lJET VAC SERVICE ,AND UIPMENT INC 23' 1914288 Page 2 Listed Property (Include automobiles, certain other vehicles, cellular telephones, certain computers, and property used for entertainment, recreation, or amusement.) Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 23a, 23b, columns (a) throuGh (c) of Section A. all of Section B. and Section C if applicable. Section A - Depreciation and Other Information (Caution: See instructions for limits for passenger automobiles) 23a Do VQU have evidence to sunnort the business/investment use claimed? [X] Ves DNa 23b If "Yes" is the evidence written? [X] Yes [] No (a) (b) Date (e) (d) (e) (f) (9) (h) (i) Type of property placed in Business! Cost or Basis for depreciation Recovery Methodl Depreciation Elected (list vehicles first) service investment other basis (business/investment period Convention deduction section 179 use percentage use only) cost 24 Property used more than 50% in a qualified business use: FORD EXPLORER 101294 % 26 51lo 5 '1DB-HY % % 25 Pronertv used 500/0 or less in a nualified business use: % S/L- % S/L- % S/L- 26 Add amounts in column (h). Enter the total here and on line 20, page 1 I 26 27 Add amounts in column (i). Enter the total here and on line 7, page 1 . ........................................................... I 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," 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. (a) (b) (e) (d) (e) (f) 26 Total business/investment miles driven during the Vehicle Vehicle Vehicle Vehicle Vehicle Vehicle year (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 through 30. Ves No Ves No Ves No Ves No Ves No Ves No 32 Was the vehicle available for personal use during off-duty hours? X 33 Was the vehicle used primarily by a more than 5% owner or related person? ............. X 34 Is another vehicle available for personal use? X Section C - Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons. 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 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? ....................................................................................... 36 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? ....................................... ..... Note: If your answer to 35, 36, 37, 38, or 39 is "Yes, " you need not complete Section B for the covered vehicles. I Part VI I Amortization (a) I (b) (e) (d) (e) (I) Description of costs Daleamortizafion Amortizable Code AmortizaUon Amortization oegins amount section period Ot percentage for this year 40 Amortization of costs that begins during your 2000 tax year: I I 41 Amortization of costs that began before 2000 ...... I 41 1 500. ...................... .................................... ............................... 42 Total. Add amounts in column (t). See instructions for where to report .............................................................. I 42 1 500. Form 4562 (2000) 016252 10-21-00 15080124 706230 33100 6 2000.08000 JET VAC SERVICE AND EQUIPME 33100~1 '4562 , . OMS No. 1545-0172 Form Depreciation and Amortization 2000 Department 01 the Treasury (Including Information on Listed Property) COGS Attachment Internal Revenue Service (g9l ... See separate instructions. .... Attach this form to your return. Sequence No. 67 Name(s) shown on relurn Business or aclivity 10 which this form relales Identifying number COST OF GOODS SOLD JET VAC SERVICE AND EOUIPMENT INC DEPRECIATION 23 1914288 LPartll Election To Expense Certain Tangible Property (Section 179) Note: If you have any 'listed property;complete Part V before you complete Part I.) 1 Maximum dollar limitation. If an enterprise zone business, see instructions. 1 20 000. 2 Total cost of section 179 property placed in service. See instructions 2 14 68l. 3 Threshold cost of section 179 property before reduction in limitation. 3 $200,000 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter .0. 4 o. 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing seoaratelv. see instructions ............................... . ............................ ................. 5 20 000. 6 (a) Description of property (b} Cost (business use only) (c) Elected cost 7 Listed property. Enter amount from line 27.. I 7 ........... ................................... ......... 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . 8 9 Tentative deduction. Enter the smaller of line 5 or line 8 9 10 Carryover of disallowed deduction from 1999 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 11 20 000. 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 12 13 Carryover of disallowed deduction to 2001. Add lines 9 and 10, less line 12 ..-.. ~rn;~~ Note: Do not use Part /I or Part /J/ below for lIsted property (automobiles, certam other vehicles, ceflular telephones, certain computers, or property used for entertainment, recreation, or amusement). Instead, use Part V for listed property. Part.. MACRS Depreciation For Assets Placed in Service Only During Your 2000 Tax Year (Do not include listed property.) Section A - General Asset Account Election 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 instructions .............................................................................................................................................. D Section B - General Depreciation System (GDS) (See instructions.) (b) Month and (c) Basis for depreciation (d) Recovery (a) Classification 01 property year placed (businesslinvestmentuse (e) Convention (f)Method (g}Depreciatlon deduction In service only-see instructions) period 15 a 3.vear DroDertv b 5.vear DroDertv 10 404. 5 HY InDB 2 08l. e 7.vear DrDDertv 4 277. 7 HY InDB 61l. d 1 O.vear prDnertv e 15.vear DroDertv f 20,vear proDertv a 25.vear DrDDertv 25 vrs. SIL I 27.5 vrs. MM SIL h Residential rental property 27.5 vrs. SIL I MM Nonresidential real property I 39 vrs. MM SIL i I MM SIL Section C - Alternative Depreciation System (ADS) (See instructions.) 16 a Class life . SIL b 12-vear 12 vrs. SIL e 40-year I 40yrs. MM SIL li=tartlWother Depreciation (Do not include listed property.) (See instructions.) 17 GDS and ADS deductions for assets placed in service in tax years beginning before 2000 ......... 17 59 99l. 18 Property subject to section 168(1)(1) election ................................................. .......................... 18 19 ACRS and other depreciation ....... 19 IPaltlvl Summary (See instructions.) 20 Listed property. Enter amount from line 26 20 21 Total. Add deductions from line 12, lines 15 and 16 in column (g), and lines 17 through 20. Enter here and on the appropriate lines of your return. Partnerships and S corporations. see instructions ........... 21 62 683. 22 For assets shown above and placed in service during the current year, enter the I 221 nottion of the basis attributable to section 263A costs ................................................ LHA 016251 11-20-00 For Paperwork Reduction Act Notice, see the separate instructions. 7 2000.08000 JET Form 4562 (2000) 15080124 706230 33100 VAC SERVICE AND EQUIPME 33100__1 ForA14562(2000)JET AC SERVICE. AND.E UIPMENT INC 23 1914288 Page 2 Listed Property (Include automobiles, certain other vehicles, cellular telephones, certain computers, and property use 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) throuah (c) of Section A. all of Section B. and Section C if aoolicable. Section A - Depreciation and Other Information (Caution: See instructions for limits for passenger automobiles) 23a Do you have evidence to SUDOort the business/investment use claimed? [XJ Ves DNa 23b If "Yes" is the evidence written? [X] Yes D No (a) (b) Date (e) (d) (e) (f) (9) (h) (i) Type of property placed in Business! Cost or Basis for depreciation Recovery Methodl Depreciation Elected (list vehicles first) service investment other basis (businesslinvestment period Convention deduction section 179 use percentage use only) cost 24 Property used more than 5()OJb in a qualified business use: 1013 9 %, 19 102799 % 35 1028 9 % 5 960. 024. 000. 5YRS 5YRS 5YRS VEHICLE VEHICLE VEHICLE 25 Prooertv used 5()OJb or less in a qualified business use: % S/L- % S/L- % S/L- 26 Add amounts in column (h). Enter the total here and on line 20, page 1 .... .............. ................................. I 26 27 Add amounts in column (0. Enter the total here and on line 7, page 1 .......................................................................... ...... I 27 Section 8 - 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. (a) (b) (e) (d) (e) (f) 28 Total businessJinvestment miles driven during the Vehicle Vehicle Vehicle Vehicle Vehicle Vehicle year (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 through 30 .................... Ves No Ves No Ves No Ves No Ves No Ves No 32 Was the vehicle available for personal use during off-duty hours? 33 Was the vehicle used primarily by a more than 5% owner or related person? 34 Is another vehicle available for personal use? Section C - Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons. 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 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? ................................ ................ Note: If your answer to 35, 36, 37, 38, or 39 is "Yes," you need not complete Section B for the covered vehicles. I Part VI I Amortization (a) I [ (b) (e) (d) (e) (I) Description of costs Dateamortizalion Amortizable Code Amortization Amortization begins amount section period 01 pelcentage lor this year 40 Amortization of costs that begins during your 2000 tax year: I I 41 Amortization of costs that began before 2000 ............................ ........_ I 41 ........................................... ............. 42 Total. Add amounts in column (t). See instructions for where to report ................................................. I 42 Form 4562 (2000) 016252 10-21-00 15080124 706230 33100 8 2000.08000 JET VAC SERVICE AND EQUIPME 33100 1 JET.VAC SE~VIC~ AND EQUIPMENT INC 23-1914288 , . FORM 1120S OTHER INCOME STATEMENT 1 DESCRIPTION AMOUNT MISCELLANEOUS TOTAL TO FORM 1120S, PAGE 1, LINE 5 4,943. 4,943. FORM 1120S ZORA BOWMAN STEVE BOWMAN COMPENSATION OF OFFICERS SOCIAL TIME SECURITY DEVOTED TO PCT OF NUMBER BUSINESS STOCK 187-16-6525 100 5900% 187-36-7751 100 4100% STATEMENT 2 NAME OF OFFICER AMOUNT OF COMPENSATION TOTAL COMPENSATION OF OFFICERS LESS: COMPENSATION CLAIMED ELSEWHERE 20,000. 100,693. 120,693. TOTAL TO FORM 1120S, PAGE 1, LINE 7 120,693. FORM 1120S TAXES AND LICENSES STATEMENT 3 DESCRIPTION AMOUNT PAYROLL TAXES REAL ESTATE TAXES MISCELLANEOUS TAXES TOTAL TO FORM 1120S, PAGE 1, LINE 12 13,752. 3,051. 127. 16,930. FORM 1120S OTHER DEDUCTIONS STATEMENT 4 DESCRIPTION AMOUNT AUTO AND TRUCK EXPENSE LEGAL AND ACCOUNTING UTILITIES OFFICE EXPENSE DUES AND SUBSCRIPTIONS MISCELLANEOUS TRAVEL AND LODGING 4,490. 14,572. 14,925. 8,184. 299. 3,297. 2,210. 15080124 706230 33100 9 STATEMENT(S) 1, 2, 3, 4 2000.08000 JET VAC SERVICE AND EQUIPME 33100 1 JET'VAC SE~VIC~ AND EQUIP~ENT ~NC ~EALS AND ENTERTAINMENT AMORTIZATION EXPENSE TOTAL TO FORM 1120S, PAGE 1, LINE 19 23-1914288 381. 1,500. 49,858. FORM 1120S COST OF GOODS SOLD - OTHER COSTS STATE~ENT 5 DESCRIPTION AMOUNT SUBCONTRACTS PARTS AND SUPPLIES VEHICLE EXPENSE INSURANCE REPAIRS AND MAINTENANCE TAXES AND LICENSES EQUIPMENT RENTAL DEPRECIATION EXPENSE TOTAL TO FORM 1120S, PAGE 2, LINE 5 52,006. 11,853. 75,958. 71,111. 23,611. 38,419. 21,894. 62,683. 357,535. SCHEDULE K INTEREST INCOME STATEMENT 6 DESCRIPTION US OTHER PNC BANK 3,225. 3,225. TOTAL TO SCHEDULE K, LINE 4A SCHEDULE K CHARITABLE CONTRIBUTIONS STATEMENT 7 DESCRIPTION 50% LIMIT 30% LIMIT 20% LIMIT MISCELLANEOUS 225. TOTALS TO SCHEDULE K, LINE 7 225. 10 STATEMENT(S) 4, 5, 6, 7 15080124 706230 33100 2000.08000 JET VAC SERVICE AND EQUIPME 33100 1 JET"VAC SE~VICE AND EQUIPMENT INC 23-1914288 , . SCHEDULE K NONDEDUCTIBLE EXPENSES STATEMENT 8 DESCRIPTION AMOUNT EXCLUDED MEALS AND ENTERTAINMENT EXPENSES 380. 380. TOTAL TO SCHEDULE K, LINE 19 SCHEDULE M-2 ACCUMULATED ADJUSTMENTS ACCOUNT - OTHER ADDITIONS STATEMENT 9 DESCRIPTION AMOUNT INTEREST INCOME 3,225. 3,225. TOTAL TO SCHEDULE M-2, LINE 3 - COLUMN (A) SCHEDULE M-2 ACCUMULATED ADJUSTMENTS ACCOUNT- OTHER REDUCTIONS STATEMENT 10 DESCRIPTION AMOUNT CHARITABLE CONTRIBUTIONS EXCLUDED MEALS AND ENTERTAINMENT EXPENSES 225. 380. 605. TOTAL TO SCHEDULE M-2, LINE 5 - COLUMN (A) SCHEDULE L OTHER CURRENT ASSETS STATEMENT 11 DESCRIPTION BEGINNING OF TAX YEAR END OF TAX YEAR PREPAID EXPENSE NOTE RECEIVABLE - BOCA OTHER RECEIVABLES 4,662. 1,900. 4,557. 125. 4,682. TOTAL TO SCHEDULE L, LINE 6 6,562. 15080124 706230 33100 11 STATEMENT(S) 8, 9, 10, 11 2000.08000 JET VAC SERVICE AND EQUIPME 33100__1 JET VAC SERVICE AND EQUIPMENT INC 23-1914288 SCHEDULE L OTHER ASSETS STATEMENT 12 DESCRIPTION BEGINNING OF TAX YEAR LIFE LINE SYSTEM 17,250. 17,250. TOTAL TO SCHEDULE L, LINE 14 END OF TAX YEAR 15,750. 15,750. SCHEDULE L OTHER CURRENT LIABILITIES STATEMENT 13 DESCRIPTION BEGINNING OF TAX YEAR PAYROLL TAXES WITHHELD & ACCRUED ACCRUED WAGES & COMMISSION ACCRUED INTEREST SALES TAX PAYABLE ACCRUED PROFIT SHARING PAYROLL WITHHELD - MISCELLANEOUS 21,302. 7,574. 256. 116. 5,000. 302. 34,550. TOTAL TO SCHEDULE L, LINE 18 END OF TAX YEAR 31,744. 6,716. 396. 134. 105. 39,095. SCHEDULE L ANALYSIS OF TOTAL RETAINED EARNINGS PER BOOKS STATEMENT 14 DESCRIPTION BALANCE AT BEGINNING OF YEAR - SCHEDULE L, LINE 24, COLUMN (B) NET INCOME PER BOOKS - SCHEDULE M-l, LINE 1 DISTRIBUTIONS OTHER INCREASES (DECREASES) BALANCE AT END OF YEAR - SCHEDULE L, LINE 24, COLUMN (D) AMOUNT 309,739. 8,410. o. 318,149. 15080124 706230 33100 12 STATEMENT(S) 12, 13, 14 2000.08000 JET VAC SERVICE AND EQUIPME 33100 1 Department of the Treasury Internal Revenue Service be"innin" Shareholder's identifying number .... Shareholder's name, address, and ZIP code Shareholder's Share of Income, Credits, Deductions, etc. .... See separate instructions. For calendar year 2000 or tax year and endin" Corporation's identifyinn number .... Corporation's name, address, and ZIP code OMS No. 1545-0130 SCHEDULE K-1 (Forl1) 1120S) 2000 187 16 6525 23 1'l14288 ZORA BOWMAN JET VAC SERVICE AND EQUIPMENT 76 GREENS PRING DRIVE THREE LONG LANE MECHANICS BURG PA 17055 MECHANICSBURG PA A Shareholder's percentage of stock ownership for tax year (see Instructions for Schedule K~1) B Internal Revenue Service Center where corporation filed its return ~ CINCINNATI, OH C Tax shelter registration number (see Instructions for Schedule K-1) D D INC 17055 .........~ 59.002808% ...........................~ D Check annlicable boxes: 11\ Final K-l 12\ . Amended K-l (a) Pro rata share items (b) Amount (c) Form 1040 lilers enter the amount in column (bl on: 1 Ordinary income (loss) from trade or business activities 1 1 605. 2 Net income (loss) from rental real estate activities 2 } s.. p'g." ~d5 ofth, Shareholder's Instructions IOf 3 Net income (loss) from other rental activities 3 ScheduleK-1 (FOfm 1120S). 4 Portfolio income (loss): . Interest 4. 1 903. Sch. B, Part 1,Iine 1 "' b Ordinary dividends. 4b Sch. B, Part 1I,Iine 5 0 0 Sch. E, Part I, line 4 d . Royalties 4. ~ d Net short-term capital gain (loss) 4d Sch. D, line 5, col. (f) E 0 Net long-term capital gain (loss): u e .5 (1) 28% rate gain (loss) 4ell\ Sch. D, line 12, col. (g) (2) Total for year 4e12\ Sch. D, line 12, col. (f) I Other portlolio income (loss) (attach schedule) 41 (Enteron applicable line of your return.) See Shareholder's Instructions 5 Net section 1231 gain (loss) (other than due to casualty or theft) ... 5 fOf Schedule K-1 (FOfm 1120S). 6 Other income 'loss' {aftach schedule' ................................ 6 (Enter on applicable line 01 your return.) 0 7 Charitable contributions (attach schedule) ..... SEE... S'l'ATEMENT.. 7 133. Sch. A, line 15 or 16 c 0 " 8 Section 179 expense deduction 8 } s.. p'", 6 of th, Shw,hold~', U " 9 Deductions related to portfolio income (loss) (attach schedule) 9 InstructionsfQfScheduleK-1 'C ~ Other deductions {aftach SChedule' ............................ (Form 1120S). C 10 10 c_ 11. Interest expense on investment debts 11. Form 4952, line 1 ~oo E~ 11bll 1 903. 1;)$ b (1) Investment income included on lines 4a, 4b, 4c, and 4f above ) s.. Shw,ho',,",', '","uo""'" ~c 12\ Investment exnenses included on line 9 above l1bl2 >- for ScheduieK-1 (Form '120S). ~ 12. Credit for alcohol used as fuel 12. Form 6478, line 10 b Low-income housing credit: (1) From section 420)(5) partnerships for property placed in service before 1990 12bll (2) Other than on line 12b(l) for plOperty placed in service before 1990 12b/2 (3) From section 42(j)(5) partnerships for plOperty placed in Form 8586, line 5 .l!! service atter 1989 12bl3 '6 ~ (4) Other than on line 12b(3) for property placed in service after () 1989 12bl4 c Qualified rehabilitation expenditures related to rental real estate activities 12c d Credits (other than credits shown on lines 12b and 12c) related to rental real estate activities 12d See page 7 of the Shareholder's Instl1JctionsforScheduleK.1 e Credits related to other rental activities 12e (Form 1120S). 13 Other credits 13 JWA For Paperwork Reduction Act Notice, see the Instructions for Form 11208. Schedule K.l (Form 1120S) 2000 011741 12-04-00 15080124 706230 33100 13 SHAREHOLDER NUMBER 1 2000.08000 JET VAC SERVICE AND EQUIPME 33100 1 JET VAC SERVICE AND EQUIPMENT INC 16 Section 59(e)(2} expenditures: a Type ~ b Amount 17 Tax-exempt interest income 18 Other tax-exempt income 19 Nondeductible expenses .S.EES'.l'A'.l'EMEN'.l'. . 20 Property distributions (including cash) other than dividend distributions reported to you on Form 1099-DIV 20 Amount of loan repayments for "Loans From Shareholders. 21 Recapture of low-income housing credit: } a From section 42(i)(5} partnerships 22a Form 8611, line 8 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): Schedule K-l 'Form 1120Sl '2000l ~ =E ~~ ~~ _ u ~~ ~~ E~ ~~ ~ - :co.. ""I;; >- (a) Pro rata share items 14 a 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 . Other adiustments and tax nreference items (attach SCh.dule' .. 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.. (2) Listed categories (attach schedule) (3) Generallimitation d Deductions allocated and apportioned at shareholder level: (1) Inter.stexpense e b2Jdu~W;~S ailoca1ed"and 'app"ortiCiriec! at corp"orate" ievei "t6- foreliiri"'"""" source Income: (1) Passive.. (2) Listed categories (attach sch.dule) . . t ~~tal~:~::;; I;~;::ti(~~e~k ~ne):...j;:. Dp;jd .. DAc~rued.. a Reduction in taxes available for credit and nross Income from all sources (attach schedule '" " X :::. c Cl .ij ~ o ... ~ " " o 21 22 c o '" ~ E is :s Ii c " E " Q. 0. " (/) 23-1914288 14a 14b 14c dl11 d12\ 14. (b) Amount 3 122. . Pao.2 (e) Form 1040 1ilers enter the amount in column (b) on: See page 7 of the Shareholder's Instructions for Schedule K-l (Form 1120S) and Instructions for Form 6251 15b 15cl1 15cl2 15cl3 Form 1116, Part I 15d/l 15dt2 15e/l 15.12 15.13 1St 150 ) Form 1116, Part II See Instructions for Form 1116 16b 17 18 19 See Shareholder's Instructions fO{ Schedule K-1 (Form 1120S)" Form 1040, line 8b 224. } See page.!! 7 and 8 of the Shareholder's Instructions for Schedu\eK-1 (Form 1120S)" Schedule K-1 (Form 1120S) 2000 011742 12-04-00 15080124 706230 33100 14 SHAREHOLDER NUMBER 1 2000.08000 JET VAC SERVICE AND EQUIPME 33100__1 JET'VAC SERVICE AND EQUIPMENT INC 23-1914288 , . SCHEDULE K-l CHARITABLE CONTRIBUTIONS DESCRIPTION AMOUNT SHAREHOLDER FILING INSTRUCTIONS CHARITABLE CONTRIBUTIONS - 50 % LIMIT 133. SEE FORM 1040 INSTRUCTIONS TOTAL TO SCHEDULE K-l, LINE 7 133. SCHEDULE K-l NONDEDUCTIBLE EXPENSES DESCRIPTION AMOUNT SHAREHOLDER FILING INSTRUCTIONS EXCLUDED MEALS AND ENTERTAINMENT EXPENSES 224. SEE FORM 1040 INSTRUCTIONS TOTAL TO SCHEDULE K-l, LINE 19 224. 15080124 706230 33100 15 Shareholder 1 2000.08000 JET VAC SERVICE AND EQUIPME 33100 1 Shareholder Number: Shareholder Name: 1 Shareholder Basis Worksheet Year Ended: DECEMBER 31, 2000 S Corporation Name: ZORA BOWMAN Shareholder ID Number: Ownershi Percenta e: 187-16-6525 59.002808 % JET VAC SERVICE AND E UIPMENT INC S Corporation 10 Number: 23-1914288 Stock Basis 14,796'1 14,796.1 1. a. Stock basis, beginning of year (Not less than zero) . b. Additional capital contributions 2. Increases: a. Ordinary income from trade or business b. Net income from rental real estate activities c. Net income from other rental activities d. Net short-term capital gains. e. Net long~term capital gains f. Other portfolio income g. Net gain under Section 1231 h. Other income i. Tax exempt interest income j. Other tax-exempt income k. Section 179 recapture on dispositions I. Depletion (other than oil and gas) in excess of basis m Other increases' 1 605. 1 903. 3. T 4. T 5. L 6. S 7. Decreases: a. Ordinary losses from trade or business b. Net losses from rental real estate activities c. Net losses from other rental activities d. Net short-term capital losses e. Net long-term capital losses _ 1. Other portfolio losses g. Net losses under Section 1231 h. Other deductions i. Charitable contributions j. Section 179 expense deduction k. Deductions related to portfolio income (losses) L Interest expense on investment debts m. Foreign taxes paid or accrued n. Section 59(e) expenditures o. Nondeductible expenses p. Oil and gas depletion. q Other decreases' I I I I atal increases (Add lines 2(a) through 2(m)) 3 508. otal increases to stock basis (Add lines 1 and 3) 18 304. ess: Distributions ubtract line 5 from line 4 (Not less than zero) 18 304. 133. 224. r. 8. T 9. N 10. L 11. S I I I I 357. Unallowed prior year's losses and deductions otal decreases (Add lines 7(a) through 7(r)) . 357. et increases or decreases to basis (Subtract line 8 from line 6) 17 947. ess: Net increases applied to debt basis (Not to exceed line 9 and not Jess than zero) tock basis, end of year (Subtract line 10 from line 9) (Not less than zero) 17 947. 012101 05-15-00 15080124 706230 33100 15.1 2000.08000 JET VAC SERVICE AND EQUIPME 33100 1 Sharenolder Basis Worksheet, Continued 1 Year Ended: DECEMBER Shareholder 10 Number: 31, 2000 187-16-6525 Shareholder Number: Shareholder Name: ZORA BOWMAN Debt Basis 12. Debt basis, beginning of yea 13. Loans made during the year 14. Restoration of debt basis (fr 15. Subtotal (Add lines 13 and 1 16. Less: Loan repayments 17. Gain from loan repayments 18. Other adjustments: r (Not less than zero) 88 000. ............... I om line 10) . I 4) I I I I 15,16, t7 and t8) 88 000. and deductions (Not to exceed line 19) (Not less than zero) less than zero) 88.000. debt basis, end of year (Add iines 11 and 21) (Not less than zero) 105 Q47. 19. Subtotai (Combine lines 12, 20. Applied against excess loss 21. Debt basis, end of year (Not 22. Total shareholder stock and Gain on Distributions 23. Distributions 24. Less: Basis before distributions 25. Enter excess of line 23 over line 24 (capital gain) . ......................................1 Carryover Total Debt Basis Appiied Disallowed Against Excess Losses losses and Deductions 357. 357. 26. Beginning of year 27. Add: Losses and deductions this year 28. Less: Applied this year 29. End of year (Nolless than zero) PRINCIPAL AMOUNT OF DEBT OWED TO SHAREHOLDER, ADJUSTED FOR LOANS MADE OR PAID DURING THE YEAR 88,000. 012102 05-15-00 15080124 706230 33100 15.2 2000.08000 JET VAC SERVICE AND EQUIPME 33100 1 SCHEDULE K-1 (Form 1120$) Shareholder's Share of Income, Credits, Deductions, etc. .... See separate instructions. For calendar year 2000 or tax year and endin" Corporation's identifying number ..... Corporation's name, address, and ZIP code OMS No_ 1545-0130 Department of the Treasury Internal Revenue SefVice bellinnin" Shareholder's identifying number ~ Shareholder's name, address, and ZIP code 2000 187 36 7751 23 1q14288 STEVE BOWMAN JET VAC SERVICE AND EQUIPMENT INC 2999 DICKINSON AVENUE THREE LONG LANE CAMP HILL PA 17011 MECHANICSBURG PA 17055 A Shareholder's percentage of stock ownership for tax year (see Instructions for Schedule K-l) . ._._.._.~ 40 . 997192% B Infernal Revenue Service Center where corporation filed its return ~ CINCINNATI. OH C Tax shelter registration number (see Instructions for Schedule K-1) ._ ._. ....... .......... D D Check annlicable boxes: 'I' D Final K-l '2' Amended K-l (a) Pro rata share items (b) Amount (c) Form 1040 filers enter the amount in column Ib) on: 1 Ordinary income (loss) from trade or business activities 1 1 115. 2 Net income (loss) from rental real estate activities 2 } s.. p."," ~d 5 ofth. Shareholder's Instructions for 3 Net income (loss) from other rental activities 3 Schedule K-1 (Form 1120S). 4 Portfolio income (loss): a Interest 4a 1 322. Sch. S, Part I, line 1 " b Ordinary dividends. 4b Sch. S, Part II, line 5 .. 0 Sch. E, Part I, line 4 d- c Royalties 4c " d Net short-term capital gain (loss) 4d Sch. D, line 5, col. (f) E 0 Net long-term capital gain (loss): u e .E (1) 28% rate gain (loss) 4el1\ Sch. D, line 12, col. (g) (2) Total for year 4e(2) Sch. D, line 12, col. (f) f Other portfolio income (loss) (attach schedule) 4t (Enter on applicable line of your return,) See Shareholder's Instructions 5 Net section 1231 gain (loss) (other than due to casualty or theft) .0. 5 for Schedule K-1 (Form 1120S). 6 Dther income 'loss' lattach schedule' .................................. 6 (Enter on applicable line of your return.) .. 7 Charitable contributions (attach schedule) ......8EE.S'l'A'l'Elo1:E:NT.. 7 92. Sch. A, line 15 or 16 ~ 0 Section 179 expense deduction '" 8 8 } s.. pa", 6 ollh. Sh~.hold~', U " 9 Deductions related to portfOlio income (loss) (attach schedule) 9 Instructions for Schedule K-1 'tl " Other deductions 'attach SChedule' (Form 1'20S). C 10 10 ~- 11. Interest expense on investment debts lla Form 4952, line 1 ~~ E~ l1bll 1 322. 'Via; b (1) Investment income included on lines 4a, 4b, 4c, and 4f above 1 See Shareholder's Instructions ~~ 12\ Investment exnenses included on line 9 above l1b12 for Schedule K-1 (Form 1120S). ~ 12. Credit for alcohol used as fuel 12a Form 6478, line 10 b Low-income housing credit (1)From section 42(j)(5) partnerships for property placed in service before 1990 12b/l (2) Other than on line 12b(l) for property placed in service before 1990 12bl2 (3) From section 42(j)(5) partnerships fOI property placed in Form 8586, line 5 2l service after 1989 12b'3 'C ~ (4) Other than on line 12b(3) for property placed in service after U 1989 12bl4 c Qualified rehabilitation expenditures related to rental real estate activities 12c d Credits (other than credits shown on lines 12b and 12c) related to rental real estate activities 12d See page 7 of the Shareholder's InstructionsforScheduleK-1 e Credits related to other rental activities 12e (Form 1120S). 13 Other credits 13 JWA For Paperwork Reduction Act Notice, see the Instructions for Form 11208, Schedule K-l (Form 11205) 2000 011741 12-04-00 15080124 706230 33100 16 SHAREHOLDER NUMBER 2 2000.08000 JET VAC SERVICE AND EQUIPME 33100 1 JET VAC SERVICE AND EQUIPMENT INC 011742 12-04-00 Section 59(e)(2) expenditures: a Type ~ Amount Tax-exempt interest income Other tax-exempt income Nondeductible expenses .........S.EE..S.TATE.MEN'l'.. Property distributions (including cash) other than dividend distributions reported to you on Form 1099-DIV 20 Amount of loan repayments for "Loans From Shareholders. 21 Recapture of low-income housing credit; } a From section 42(j)(5) partnerships 22. Form 8611, line 8 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): Schedule K-11F0rm 1120S1 120001 (a) Pro rata share items (b) Amount ~ ~E em ~'" ~ m _ u ee mm E~ --", ~m ~ ~ :.oc.... "",x ~ >- 14 a Depreciation adjustment on property placed in service after 1986 b Adjusted gain or loss e 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 adiustments and tax oreference items (attach schedule) 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. (2) Listed categories (attach schedule) (3) Generallimitation d Deductions allocated and apportioned at shareholder level: (1) Interest expense . e b2JdU~W~~S cil16i::ateld "a"rid "app"oi-t1oneCl at .corp"orate" ieiiei "to. forelg"ri"" source Income: (1) Passive.. (2) Listed categories (attach schedule) ~~tal~:~:::~ I;~;::t~~~eck ~~;):....~.. t:::::J. p;j;j ... t:::::JAc~rue;j.. Reduction in taxes available fef credit and ""OSS income from all sources {attach schedule' ... 14. 14b 14e dill d(21 14e 15b 15et1 15el2 15el3 15dll 15dl2 15el1 15e/2 15el3 151 15. 2 170. .. " x ~ >- C Cl .~ - o u. :;; .<: ~ o f n 16 b 17 18 19 20 156. ] 16b 17 18 19 21 22 c o '" ~ E - o ~ .E Iii C " E " 0. " ~ en 15080124 706230 33100 17 2000.08000 JET VAC SERVICE SHAREHOLDER NUMBER 2 AND EQUIPME 33100 1 23-1914288 Pane 2 (e) Form 1040 tilers enter the amount in column (b) on: See page 7 of the Shareholder's Instructions for Schedule K-1 (Form 1120S) and Instructions for Form 6251 Form 1116, Part I ) Form 1116, Part II See Instructions for Form 1116 See Shareholder's Instructions for Schedule K-1 (Form 1120S). Form 1040, line 8b See pages 7 and 8 of the Shareholder's Instructions for ScheduleK-1 (Form 1120S)" Schedule K-1 (Form 1120S) 2000 JET VAC SERVICE AND EQUIPMENTINC 23-1914288 , . SCHEDULE K-l CHARITABLE CONTRIBUTIONS DESCRIPTION AMOUNT SHAREHOLDER FILING INSTRUCTIONS CHARITABLE CONTRIBUTIONS - 50 % LIMIT 92. SEE FORM 1040 INSTRUCTIONS TOTAL TO SCHEDULE K-l, LINE 7 92. SCHEDULE K-l NONDEDUCTIBLE EXPENSES DESCRIPTION AMOUNT SHAREHOLDER FILING INSTRUCTIONS EXCLUDED MEALS AND ENTERTAINMENT EXPENSES 156. SEE FORM 1040 INSTRUCTIONS TOTAL TO SCHEDULE K-l, LINE 19 156. 15080124 706230 33100 18 Shareholder 2 2000.08000 JET VAC SERVICE AND EQUIPME 33100 1 Sharsholder Basis Worksheet Shareholder Number: Shareholder Name: 2 Year Ended: S Corporation Name: DECEMBER 31, 2000 STEVE BOWMAN Shareholder ID Number: Ownershi Percenta e: 187-36-7751 40.997192 % JET VAC SERVICE AND E UIPMENT INC S Corporation ID Number: 23-1914288 Stock Basis 10,279.1 10,279.1 1. a. Stock basis, beginning of year (Not less than zero) b. Additional capital contributions 2. Increases: a. Ordinary income from trade or business b. Net income from fental real estate activities c. Net income from other rental activities d. Net short-term capital gains 8. Net long-term capital gains 1. Other portfolio income g. Net gain under Section 1231 h. Other income i. Tax exempt interest income. j. Other tax-exempt income k. Section 179 recapture on dispositions I. Depletion (other than oil and gas) in excess of basis m Other increases. 1 115. 1 322. 3. To 4. To 5. Le 6. Su 7. Decreases: a. Ordinary losses from trade or business b. Net losses from rental real estate activities c. Net losses from other rental activities. d. Net short-term capital losses e. Net long-term capital losses f. Other portfolio losses g. Net losses under Section 1231 h. Other deductions i. Charitable contributions j. Section 179 expense deduction k. Deductions related to portfolio income (losses) I. Interest expense on investment debts m. Foreign taxes paid or accrued n. Section 59{e) expenditures o. Nondeductible expenses p. Oil and gas depletion. q. Other decreases: I I I I tal increases (Add lines 2(a) through 2(m)) 2 437. tal increases to stock basis (Add lines 1 and 3) 12 716. ss: Distributions btract line 5 from line 4 (Not less than zero) 12 716. 92. 156. r. 8. To 9. N 10. Le 11. St I I I I 248. Unallowed prior year's losses and deductions tal decreases (Add lines 7(a) through 7(r)) 248. et increases or decreases to basis (Subtract line 8 from line 6) 12 468. ss: Net increases applied to debt basis (Not to exceed line 9 and not less than zero) ock basis, end of year (Subtract line 10 from line 9) (Not less than zero) 12 468. 012101 05-15-00 15080124 706230 33100 18.1 2000.08000 JET VAC SERVICE AND EQUIPME 33100__1 Shareholder Number: 2 Shareholder Name: Shareholder Basis Worksheet, Continued STEVE BOWMAN Year Ended: DECEMBER 31, 2000 Shareholder 10 Number: 187- 3 6 - 7751 Debt Basis 12. Debt basis, beginning of yea 13. Loans made during the year 14. Restoration of debt basis (fr 15. Sublotal (Add lines 13 and 1 16. less: Loan repayments. 17. Gain from loan repayments 18. Other adjustments: r (Not less than zero) 5 000. ..-....... I om line 10). I 4) I I I I 15,16,17 and 18) 5 000. and deductions (Not to exceed line 19) (Not less than zero) . less than zero) 5 000. debt basis, end at year (Add lines 11 and 21) (Not less than zero) 17 4-;;R. 19. Subtotal (Combine lines 12, 20. Applied against excess loss 21. Debt basis, end of year (Not 22. Total shareholder stock and Gain on Distributions 23. Distributions 24. Less: Basis before distributions 25. Enter excess of line 23 over line 24 (capital gain) . Carryover Total Debt Basis Applied Disallowed Against Excess Losses Losses and Deductions 248. 248. 26. Beginning of year 27. Add: Losses and deductions this year 28. Less: Applied this year 29. End of year (Not less than zero) PRINCIPAL AMOUNT OF DEBT OWED TO SHAREHOLDER, ADJUSTED FOR LOANS MADE OR PAID DURING THE YEAR 5,000. 012102 05-15-00 15080124 706230 33100 18.2 2000.08000 JET VAC SERVICE AND EQUIPME 33100__1 SUMMARY JET VAC SERVICE AND EQUIPMENT INC Allbcation Summary Worksheet 3999 23-1914288 Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia. Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts. Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota . Ohio Oklahoma Oregon Pennsylvania. Rhode Island. South Carolina South Dakota Tennessee. Texas Utah Vermont. Virginia Washington West Virginia . Wisconsin Wyoming Foreign Other WITHIN EVERYWHERE o . o. o. Total 910871 05-15-99 15100124 706230 33100 1999.08200 JET VAC SERVICE AND EQUIPME 33100 1 , Foem 7004 Application for Automatic Extension of Time To File Corporation Income Tax Return OMBNo.1545-0233 {Rev. July 1998) Department of the Treasury Internal Revenue Service Name of corporation Employer identification number JET VAC SERVICE AND EOUIPMENT INC Number, street, and room or suite no. (if a P.O. box or outside the United States, see instructions.) THREE LONG LANE City or town, state, and ZIP code MECHANICSBURG. PA 17055 Check type of return to be filed: [Xl form 1120 D form 1120-A D form 112D-f D form 990-C ... D form 990- T ,.. 23 1914288 D D D form 1120-FSC form 1120-H Form 112M D D D Form 1120-ND Form 1120-PC Form 1120-POL D D D Form 1120-REIT Form 1120-RIC Form 1120S D Form 1120-Sf Note: Other 990 filers (i.e., Form 990, 990-EZ, 990-BL, 990-PF, and certain filers of Form 990-T (see instructions)) must use Form 2758 to request an extension of time to file. Form 1120-F filers: Check here if you do not hal/e an office Of place of business \n the United States ......~D 1a \ request an automatic 6-rnonth (or, for certain foreign corporations, 3-month) extension of time until SEPTEMBER 15, 2000 ,to file the income tax return of the corporation named above for ~ [Xl calendar year 1999 or ~ CJ tax year beginning '_ , and ending b If this tax year is for less than 12 months, check reason: D Initial return 0 Final return [J Change in accounting period [J Consolidated return to be filed 2 If this application also covers subsidiaries to be included in a consolidated return, complete the following: Name and address of each member of the affiliated nrouD Employe~, i!:~tification Tax neriod '." ~e 3 Tentative tax 31 o. 4 Credits: a Overpayment credited from prior year S ,1,,,. b Estimated tax payments for the tax year c Less refund for the tax year applied for on Form 4466 :: ( 4d e Credit for tax paid on undistributed capital gains (Form 2439) 4e f Credit for Federal tax on luels (Form 4136) 41 5 Total. Add lines 4d through 41 5 o. 6 Balance due. Subtract line Stom line 3. Denalit this amount electTonicaUv or with a federal Tax Deposit IFTDl Counon 6 o. Signature. _ Under penalties of perjury, I declare that I have been authorized by the above-named corporation to make this application, and to the best of my knowledge and belief, the statements made are true, correct, and complete. (Date) (Signature of officer or agent) (Title) JWA For Paperwork Reduction Act Notice, see instructions. Form 7004 (Rev. 7-98) 919741 11-24-99 15100124 706230 33100 1999.08200 JET VAC SERVICE AND EQUIPME 33100__1 . F"m 7004 Application for Automatic Extension of Time To File Corporation Income Tax Return . OMBNo.1545-Q233 {Rev. OctobeJ 20c0} Department of the Treasury Intern<ll Revenue Service Name of corporation Employer identification number JET VAC SERVICE AND EOUIPMENT INC Number, street, and room or suite no. (if a P.O. box or outside the United States, see instructions.) THREE LONG LANE City or town, state, and ZIP code MECHANICSBURG. Check type of return to be filed: o form 990-C o form 1120 o form 1120-A D form 1120-f 23-1914288 PA 17055 o form 1120-fSC D form 1120-H D form 1120-L D form 1120-ND D form 1120-PC D form 1120-PDL D form 112O-REIT D form 1120-RIC [XJ form 1120S D form 1120-Sf . Form 1120-F filers: Check here if the foreign corporation does not maintain an office or place of business in the ~_~D 1 Request for Automatic Extension (see instructions) a Extension date. I request an automatic 6-month (or, for certain corporations, 3-month) extension of time until SEPTEMBER 17,2001, 10 tile the income t.x return 01 the corporation named above for~ [X] calendar year 2000 or~ CJ tax year beginning '_ ,and ending b Short tax year. If this tax year is for less than 12 months, check reason: D Initial return D Final return 0 Chanoe in accounting period D Consolidated return to be filed 2 Affiliated group members (see instructions). If this application also covers subsidiaries to be included in a consolidated return, provide the followinn information: Name and address of each member of the affiliated group Employer identification Tax period number 3 Tentative tax 3 o. 4 Payments and refundable credits: a Overpayment credited from prior year ~ ,I." . b Estimated tax payments for the tax year 0 Less refund for the tax year 4b applied for on Form 4466 40 ( 4d e Credit for tax paid on undistributed capital gains (Form 2439) 4e 1 Credit for Federal tax on fuels (Form 4136) 41 5 Total. Add lines 4d through 4f 5 o. 6 Balance due. Subtract line 5 from line 3. Deposit this amount using the Electronic Federal Tax Payment System (HTPSt or with a Federal Tax Deoosit (FTD! Coooon ............. ....... ............. 6 o. .....,.............. Signature. Under penatlies of perjury, I declare that I have been authoriz:ed by the above-named corporation to make this application, and to the best of my Knowledge and belief, the statements made an~ true, correct, and complete. (Date) (Signature of c>fficer or agent) (Title) JWA For Paperwork Reduction Act Notice, see instructions. form 7004 (Rev_ 10-2000) 019741 11-28-00 15080124 706230 33100 2000.08000 JET VAC SERVICE AND EQUIPME 33100__1 , RfV.lsosex.(1.&n '*' SCHEDULE C.2 . PARTNERSHIP INFORMATION REPORT COMMONWEALTtl OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF BOWMAN, ZORA G. FILE NUMBER 21-01-00489 1. Name of Partnership Boco Associates Address 3 Lono Lane Date Business Commenced 1 / 0 1 / 19 8 6 Business Raporting Year 12 / 3 1 / 0 1 City Mechanicsbllro Slale p/\ Zip Code 170'i'i 2. Federal Employer 1.0. Number 2 3 - 2 3 7 3 3 8 9 3. Type of Business Real Estate ProductJService Real Estate 4. Decedent was a ~ General 0 Umited partner. If decedent was a limited partner, provide initial investment $ 5. PERCENT OF PERCENT OF BALANCE OF . PARTNER NAME INCOME OWNERSHIP CAPITAL ACCOUNT A. Zora G. Bowman 61% 61% 56,634.15 B. steven G Bowman 35% 35% 15,654.31 C. patricia Bowman Daoo 4% 4% 10,885.30 D. 6. Vaiue of the decedent's interest $ 177,291.00 7. Was the Partnership Indebted to the decedent? If yes, provide amount of indebtedness $ 8. Was there life insurance payable to the partnership upon the death of the decedent? 0 Yes \Xl No If yes, Cash Surrender Value $ Net proceeds payable $ Owner of the policy o Ves IXI No 9. Did the decedent sell or transfer an interest in this partnership within one year pnor to death or within two years if the date of death was pnor to 12-31-827 o Yes ~ No If yes, 0 Transfer 0 Sale Percentage transferred/sold Transferee or Purchaser COI\sideranon $ Date Attach a separate sheet for additional transfers and/or sales. 10. Was there a wntten partnership agreement in effect at the time of the decedents death? If yes, provide a copy of the agreement. rn Ves 0 No 10. . Was the decedents partnership interest sold? If yes, provide a copy of the agreement of sale, etc. 11. Was the partnershiP dissolved or liquidated after the decedents death? 0 Ves IXl No If yes, provide a breakdown of distnbutions received by the estale, Including dates and amounts received. o Yes IXl No 12 Was the decedent related 10 any of the partners? [29 Yes 0 No If yes, explain 13. Did the partnership have an interestin other corporations or partnerships? 0 Yes IXI No If yes, report the necessary information on a separate sheet, including a Schedule C-1 or C-2 for each interest A. Detailed caicuiations used in the valuation of the decedents partnership interest. B. Complete copies of financial statements or Federal Partnership Income Tax retums (Form 1065) for the year of death and 4 preceding years. C. If the partnership owned real estate, submit a list shOwing the complete address/es and estimated fair marl<el value/s. If reai estate appraisals have been secured, attach copies. . D. Any other information relating to the valuation of the decedents partnership interest. "- -' Zora Bowman Schedule C-2 Stockinformationreport - Boca Associates A. Detailed calculations used in the valuation of decedent's partnership interest. 1. See appraisal enclosed B. Complete copies of financial statements or Federal Partnership Income tax returns 1. See enclosed copies of 1065 for the tax years of2000, 1999, 1998, 1997 C. If the corporation owned real estate, submit a list showing the complete address/es and estimated FMV. I. See appraisal enclosed. JAN-31-2002 09:35 WAGGONER, FRUTIGER & DAUB BOCO ASSOCIATES PARTNERSHIP VALUATION MAY 1, 2001 ASSETS Cash Land and Building (Based on Appraisal) Refinancing Cost Total Assets 21,727.36 290,000.00 292.00 312,019.36 LIABILITIES Mortgage- PNC Bank (21,378.41) TOlal Value 290,640.95 Estate Ownership ESTATE VALUE 61% 177,290.98 717 505 1223 P.02 TOTAL P. 02 Fo,m ' 1065 Department of the Treasury Internal Revenue Service A Principal business activity ~,Q~tl:!~~~i~"~. of partner~~~'~d~~,~ome OMS ~. 1545-009&1 2000 Name of partnership D ~~~~~er Identificatioo C Business code number 531110 PA 17 G Check applicable boxes: (1) Final return (3) Change in address H Check accounting method: (1) [Xl Cash (2) D Accrual (3) D Other (specify) ~ 1 Number of Schedules K.1. Attach one for each person who was a partner at any time during the tax year ... 23-2373389 RENTAL B Principal product or service Number, street, and room or suite no. If a P.O. box, see page 13 of the instructions. E Date business started 01 01 1986 REAL ESTATE F Total assets (4) 3 Caution: Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more Information. 1 a Gross receipts or sales la .... b Less returns and allowances lb 10 2 Cost of goods sold (Schedule A, line 8) 2 ~ 3 Gross profit. Subtract line 2 from line 1c 3 E ................ .......... ............ .... .............. 0 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach schedule) 4 0 .......... .5 5 Net farm profit (loss) (attach Schedule F (Form 1040)) 5 ................................................... 6 Net gain (loss) from Form 4797, Part II, line 18 .......... 6 7 Other income (loss) (attach schedule) ....................................................................................................... 7 a Total income 1I0ss!. Combine lines 3 throuoh 7 a 9 Salaries and wages (other than to partners) (less employment credits) ........................ .................................... 9 " 10 Guaranteed payments to partners 10 ~ ................. 0 11 Repairs and maintenance 11 '" ............... .............................................................. m ~ 12 Bad debts 12 ~ ................................................ !; 13 Rent ....................... ............... 13 ~ 14 Taxes and licenses ........................ 14 ~ ....... .... ..................................... .... ........... ~ 15 Interest 15 ,~ ......... .......... .....................................I;~~i. .......... 1i 16 a Depreciation (if required, attach Form 4562) ....... ....... ... 0 ; b Less depreciation reported on Schedule A and elsewhere on return uu u.uuuu. 118bl 16c ,E 17 Depletion (Do not deduct oil and gas depletion.) 17 ~ ~ 16 Retirement plans, etc. la .!!. u. ....... ~ 19 Employee benefit programs 19 ~ .~ 1i 0 20 Other deductions (attach schedule) 20 " ~ 0 21 Total deductions. Add the amounts shown in the far rioht column for lines 9 throuoh 20 21 22 Ordinarv income floss' from trade or business activities. Subtract line 21 from line 8 22 o . Under penalties ot perjury, I dec::lare that I have examined this return, includin.g ~ccof!lP~ying schedUles and statements, and to the b_BSt of my, knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than general partner or limited liability company member) is based on aU Information of which preparer has any knowledge. Sign ~ Signature of general partner or limited liability company member Here ~O,t. Preparer's ~ 10'" ] I Preparer's SSN or PTlN Paid signature Check If ~D 178-38-3454 self-employed Preparer's Fi'm',"~.(~ ..WAGGONER FRUTIGER & DAUB I EtN ~23-158 3 249 yours II self- Use Only .moloy.d), ,. 5 0 0 6 E TRINDLE RD SUITE 200 I Phone no. (717)506-1222 address, and ZIP code MECHANICSBURG PA 17050-3649 JWA For Paperwork Reduction Act Notice, see separate instructions. 011001 11-30-00 Form 1065(2000) Form 106512000'. ,BOOO ,ASSOCIATES 23-2373889 Paoe 2 fScheduleAI Cost of Goods Sold (see oaoe 17 of the instructions) 1 Inventory ~t beginning of year .... ............................. ................................................... 1 2 Purchases less cost of items withdrawn for personal use ......................... 2 3 Cost of labor ........................... ......................................................... ............. 3 4 Additional section 263A costs (attach schedule) ......................... .. .... ..... ........................ 4 5 Other costs (attach schedule) ........................................ .................... ....... ..................... 5 6 Total. Add lines 1 through 5 ................... .... ..... ..... 6 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 9 a Check all methods used for valuing closing inventory: (i) 0 Cost as described in Regulations section 1.471-3 (ii) 0 Lower of cost or market as described in Regulations section 1.471-4 (iii) 0 Other (specify method used and attach expianation) ~ ~D qqqqqqqqqq ~O o Yes ONo o Yes 0 No b Check this box if there was a writedown of "subnormal" goods as described in Regulations section 1.471-2(c) . c Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) d Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership? e Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If 'Yes II attach exnlanation. ISchedUleBI Other Information 1 What fype of entity is filing this return? Check the applicable box: Yes No a [X] Domestic general partnership b D Domestic limited partnership i1I.. c o Domestic limited liabiiity company d 0 Domestic limited liability partnership > e o Foreign partnership fDDther~ .... 2 Are any partners in this partnership also partnerships? X 3 During the partnership's tax year, did the partnership own any interest in another partnership or in any foreign entity that was disregarded as an entity separate from its owner under Regulations sections 301.7701-2 and 301.7701-3? If yes, see instructions for required attachment ....................................... ............. X 4 Is this partnership subject to the consolidated audit procedures of sections 6221 through 6233? If "Yes,' see Designation of Tax Matters Partner below ................................... ...................................... X 5 Does this partnership meet all three of the following requirements? a The partnership's total receipts for the tax year were less than $250,000; . b The partnership's total assets at the end of the tax year were less than $600,000; and c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership ... ...... return. ..... If "Yes,' the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; .. or Item J on Schedule K-1 ................................................ ...................................... ...................................................... .... ....... X 6 Does this partnership have any foreign partners? ................. ........... .................................. ................................................. X 7 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? .............. .. ..................... X 8 Has this partnership filed, or is it required to file, Form 8264, Application for Registration of a Tax Shelter? X 9 At any time during the calendar year 2000, did the partnership 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 19 of the instructions for exceptions and filing requirements for Form TO F 90-22.1.) If "Yes: enter the name of the foreign country. ~ X 10 During the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes," the partnership may have to file Form 3520. See page 19 of the instructions X 11 Was there a distribution of property or a transfer (e.g., by sale or death) of a partnership interest during the tax year? If 'Yes,' you may elect to adjust the basis of the partnership's assets under section 754 by atlaching the statement described under Elections Made By the Partnership on page 7 of the instructions ... .......................................................................................... X 12 Enter the number of Forms 8865 attached to this return Designation of Tax Matters Partner (see page 19 of the instructions) Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return: Name of designated TMP qqqqqq~ Address of designated TMP ~ STEVEN BOWMAN ~ 2999 DICKINSON AVENUE CAMP HILL. PA 17011 Identifying number ofTMP ~ 187 - 36 -77 51 Form 1065 (2000) 0110" 12.01-00 10141210 706230 11400 2 2000.08000 BOCO ASSOCIATES 11400_1 Form 1065 '2000' >>ocn ASSOCIATES I ScheduleKI Partners' Shares of Income Credits Deductions etc. la\ Distributive share items 1 Ordinary income (loss) trom trade or business activities (page 1. line 22) .... ..... ........ ... ............... 2 Net income (loss) trom rental real estate activities (attach Form 8825) ..SEEI"'3SaT,ATE~ENT ..1.. 3 a Gross income from other rental activities I b Expenses from other rental activities (attach schedule) ........................::.... r 3b I c Net income (loss) from other rental activities. Subtract line 3b from line 3a 4 Portlolio income (loss): . Intereslincome .............. ... . .... ..........SEE ..STATE~ENT ..4... b Ordinary dividends . ............................. ..... ........... ...................... c Royalty income ................. ....................................._.......... ............ ..................... d Net short-term capital gain (loss) (attach Schedule 0 (Form 1065)) ..... ... ......... ..... .... ..... ...... ..... .. ..... e Net long-term capital gain (ioss) (attach Schedule 0 (Form 1065)): (1) 28% rate gain (loss) ~ (2) Total for year. father portlolio income (loss) (attach schedule) .... 5 Guaranteed payments to partners ........... ..... ......................................... ................ 6 Net section 1231 gain (loss) (other than due to casualty or theft) (attach Form 4797) . ...... ....... ... ...... ........ 7 Other income Iloss' rattach schedule) . ...... .......................... ....... . ................................................ 8 Charitable contributions (attach schedule) ..... ..................... ....................... ............ 9 Section 179 expense deduction (attach Form 4562) ..................... .......................... ................... .......... 10 Deductions related to portlolio income (itemize) 11 Otherdeductionslattachschedule\ .......... ........ ............................ ..8EE...8TATEMENT ..3... 12 a Low-income housing credit: (1) From partnerships to which section 42(j)(5) applies for property piaced in service before 1990 ...... (2) Of her than on line 12a(l) for property placed in service before 1990 (3) From partnerships to which section 42(j)(5) applies for property piaced in service after 1989 (4) Other than on line 12a(3) for property placed in service afte, 1989 . ...... ........ ..... b Qualified rehabilitation expenditures related to rental real estate activities (attach Form 3468) .................. c Credits (other than credits shown on lines 12a and 12b) related to rental real estate activities d Credits related to other rental activities. 13 Other credits. ..... .................. ~ 1ii 14a Interest expense on investment debts .............. ................. ... ....................... U)..~ ~;,$ b (1) Investment income included on lines 4a, 4b, 4c, and 41 above .... ........... ..s E l: (21 Investment exoenses included on line 10 above >. 15 a Net earnings (loss) from self.employment ,,E.. :: coc b Gross farming or fishing income . ............. ~~ E c Gross nonfarm income ......................................... .......................................................... 16 a Depreciation adjustment on property placed in service after 1986 ...... ... .... ... ... ..... ... ... ......... b Adjusted gain or loss .. ..................................................... .......... ....................... .................... ....... e Depletion (other than oil and gas) ............... ....... .... .......... ..... ............ ..... ..... .... ...... .... .... ....... ......... d (1) Gross income from oil, gas, and geothermal properties ................... ................ ..... ...... (2) Deductions allocable to oil, gas, and geothermal properties e Other adjustments and tax nreference items (attach schedule) 17 a Name of foreign country or U.S. possession ... b Gross income sourced at partner level. c Foreign gross income sourced at partnership level: (1) Passive.... (2) Usledcategories (atlach sch.) ... d Deductions allocated and apportioned at partner level: (1) Interestexpense~ (2) Other ..................... e Deductions allocated and apportioned at partnership level to foreign source income: (l)Passive..... (2)LlstedcalegOries(atlachsch.)..... f Total foreign taxes (check one): ~ Paid D Accrued D ................................. n Reduction in taxes available for credit and aross income from all sources (attach schedule\ .. . 18 Secfion 59(e)(2) expenditures:. Type ~ 19 Tax-exempt interest income 20 Other tax-exempt income 21 Nondeductible expenses 22 Distributions of money (cash and marketable securities) ........ ...... ...,... ... .... .......... 23 Distributions of property other than money....... ......... ...... _. _.' ....... .... ....... ............... ... 24 Other items and amounts renuired to be renorted senaratelv to oartners (attach schedUle' "'~ Cu ~c .f3~fIl fG.eE E~~ t)~::: ~. '-~ ~... " o o d- o E o u .5 o c: o :u ~ '" ~ o o ~ '5 ~ o o ~ . ~ ... c: Ol '~ 5 LL (3) Generallimilaton'" (3) Generallimllalion..... b Amount ~ - ~ '" o 011021 11-30-00 10141210 706230 11400 3 2000.08000 BOCO ASSOCIATES 1 2 ~ 3e 4. 4b 4e 4d .... > 4er2' 41 5 6 7 8 9 10 11 ...... 12"11 12.r2\ 12.13\ 12a/41 12b 12c 12d 13 14. 14bll1 14bl21 15. 15b 15c 16a 16b 16c 16d/l1 16d/21 16e 17b 17e131 ~ 17dr21 17e13\ 171 17n 18b 19 20 21 22 23 23 2373389' ~aoe3 IblTot.1 amount o. 11 273. 640. 1 225. 640. o. 31. Form 1065 (2000) 11400_1 Form 106512000) BOQ,Q ASSOCIATES 23-2373il89' Paae4 , , Analvsis of Net Income CLoss) 1 Ne! income (loss). Combine Schedule K, lines 1 through 7 in column (b). From the result, subtract the ..................... ......... I 1 sum of Schedule K,lines 8 throunh 11 14a 17f and 18b .............. 10 688. 2 Analysis by (i) Corporate (ii) Individual (Hi) Individual (iv) Partnership (v) Exempt (vi) Nominee/Other partner type: (active) (passive) organization a General partners 10 688. b Limited oartners I Schedule L I Balance Sheets per Books INot renuired if Question 5 on Schedule B is answered 'Yes:l Beninninn of tax vear End of tax vear Assets ral rbl lei Idl 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 Mortgage and real estate loans ...... 8 Other investments (attach schedule) 9a Buildings and other depreciable assets .... bless aCGumulated depreciation ....... IDa Depletable assets .'. ................... b Less accumulated depletion 11 Land (net of any amortization) ... 12a Intangible assets (amortizable only) ':..: 7 b Less accumulated amortization 13 Other assets (attach schedule) .... 14 Total assets Liabilities and Capital I..... '. 15 Accounts payable .... 16 Mortgages, noles, bonds payable in less than 1 year i 17 Other current liabilities (attach schedule) .. 18 All nonrecourse loans ................ ..... 19 MOftgages, noles, bonds payable In 1 year or more 20 Other liabilities (attach schedule) 21 Partners' capital accounts 22 Total liabilities and canital ... I I Reconciliation of Income (Loss) per Books With Income (Loss) per Return . Schedule M-1' (Not required if Question 5 on Schedule B is answered 'Yes: See page 30 of the instructions.) 1 Net income (loss) per books ............... 6 Income recorded on books this f1ear not included on Schedule K,llnes 1 hrough 2 Income included on Schedule K,lines 1 through 7 (itemize): 4,6, and 7, not recorded on books this year a Tax-exempt interest $ (itemize): 3 Guaranteed payments (other than health 7 Deductions included on Schedule K, lines 1 insurance) through II, 14a, 17f, and IBb, not charged 4 Expenses recorded on books this year not against book income this year (itemize): inciuded on Schedule K,lines I through a Depreciation $ II, 14a, 171, and lBb (itemize): a Depreciation $ b Travel and entertainment $ 8 Add lines 6 and 7 9 Income (loss) (Analysis of Net Income (Loss), 5 Add lines 1 throunh 4 line it Subtract line 8 from line 5 . I Schedule M-21 Analvsis of Partners' Capital Accounts Not renuired if Question 5 on Schedule B is answered "Yes."' 1 Balance at beginning of year 6 Distributions: a Cash 2 Capital contributed during year b Property 3 Net income (loss) per books 7 Other decreases (itemize): 4 Other increases (itemize): 8 Add lines 6 and 7 . 5 Add lines 1 throunh 4 9 Balance at end of year. Subtract IIne8 from line5 011041 12-01-00 10141210 706230 11400 4 2000.08000 BOCO ASSOCIATES Form 1065 (2000) 11400 1 0 H l!l 0 '" l!l H _c l!l N 0'1 '" N .... D.s:! i::]i' '" N 0'1 N e- ~u o~ e- H (X) H e- E5. ""~ 0 ~'" 0 c.... ~~ ~u ~~ Uen ~c H (X) 0 H ~o 0 "" H rti:;::; "" .... "3.s:s! E~ N ~~ uo. "" u~ ",,0 H I I>: '" "" (X) 0 e- c l!l N e- l!l 0 _0 0:.;::; 0'1 (:) e- .... N ~m oo"u 'Vi ~ "" e- N mo. "'~ l!l .... 0 0 H N .EO 0 c: I cn-Cll ,g.~!;:: ~ (..)<'0 __ :::::lc::lu<'O ~ t:CI) 0: ~C3 ~x ~w '" ~ '" e- " :$.~ l!l 0 " 0'1 N '" <n'" 0 ~~ 0- :Co N ~ m_ '0 c<n ::;)0 0 ~ U N " '" H ~ ~ci .... 0'1 e- ~ e: ::iZ H H .... 0 0 '" ~ 0 0 0 ~ :::; (X) (X) 0'1 0 H H ~ "" '" .... ~ 0 CJ:l '" 0'\ tJ ~ 0 i2I i2I :; H e- ~ l!l l!l 0'\ ~ (X) 00 0'1 0'1 ~ ~.= H H e- tJ m~ 0 0 0 N o~ !Xl Oi H H H e- ~ 0 0 0 0 .... ~ c: 0 0- W 8..... c: ~ t!l ~ I>:l!l Z CJ:l Z Oe- 0 8 H H CJ:l ::ilz ~ CJ:l Q Q 8 Z !Xl c 0 i2I ..:i CJ:l 0 0 >= ~ g tJ H H O..:i<.llH H c: 0. P P tJ": 8 8 0 ." Z I"l I"l 8ZtJZ ..: u ::; <n 0 t!lZO!XlO H ~ "" 0 H ..:i ..:i Zi>1HCi)H tJ 0 8 ..: ..: HI>:8 8 i>1 z ..: H H tJ ..: ..: I>: "" P< '" tJ tJ :ij..:iHnH P< Z 0 H I>: I>: ":tJCJ:ltJ i>1 0 :x: ~ !Xl i>1 Z8i>1CJ:li>1 Q ~ CJ:l ~ ~ HOI>:i>11>: (3 i><8P<i21P< 8 W i>1 I>: 0 0 i>1 i>1 i>1 i>1 c: tJ .. 0- H .... '" W 0 i>< $ci 8 i>< N 0 ~z 0 ;;; '" N 0 '<>m 8825 . ' Rental Real Estate Income and Expenses of a Partnership or an S Corporation .. See instructions on page 2_ ~ Attach to Form 1065, Form 1065-B, or Form 11205. OMS tiC. 1,5"fi~1UO Department 01 the Treasury Internal Revenue Service N~' 2000 Employer identification number BOCa ASSOCIATES 1 Show the kind and location of each property. See Dace 2 for additional properties. AOFFICE SHOP, GARAGE AND LAND MECHANICS BURG , PA 17055 23'-2373389 B c o Properties Rental Real Estate Income A B C 0 2 Gross rents 2 22 906. Rental Real Estate Expenses 3 Advertising 3 4 Auto and travel 4 5 Cleaning and maintenance 6 6 Commissions 6 7 Insurance 7 B Legal and other professional fees 8 675. 9 Interest 9 3 202. 10 Repairs 10 11 Taxes ...... .................. 11 12 Utilities 12 13 Wages and salaries 13 14 Depreciation (see instructions) 14 7 651- 15 Other (list) ~ STMT..4.. 105. .............................. 15 18 Total expenses for each property. Add lines 3 through 15 ......... 16 11 633. 17 Total gross rents. Add gross rents from line 2, columns A through H .......................................................... 17 22 906. 18 Total expenses. Add total expenses from line 16, columns A through H .............................. ........ 18 11 633. 19 Net gain (loss) from form 4797, Part II, line 18, from the disposition of property from rental real estate activities .. 19 20a Net income (loss) from rental real estate activities from partnerships, estates, and trusts in which this partnership or S corporation is a partner or beneficiary (from Schedule K-1) 20a b Identify below the partnerships, estates, or trusts from which net income (loss) is shown on line 20a. Attach a schedule if more space is needed: (1) Name (2) Employer identification number 21 Net income (loss) from rental real estate activities. Combine tines 17 through 20a. Enter the result here and on: .............................1 . Form 1065 or 11205: Schedule K, line 2, or ..................................................................... 21 11 273. . Form 1065-B: Part I line 4 JWA 020141 11-21-00 10141210 706230 11400 For Paperwork Reduction Act Notice, see page 2ofform. 5 2000.08000 BOCO ASSOCIATES Form 8825 (2000) 11400_1 BOCa ASSOCIATES Form B82S (2000) , ' 23-2373389 ., Page 2 1 Show the kind and location of each property. E F G H Pronerties Rental Real Estate Income E F G H 2 Gross rents ........ 2 Rental Real Estate Expenses 3 Advertising .............. 3 4 Auto and travel ................ 4 5 Cleaning and maintenance 5 6 Commissions 6 7 Insurance ................ 7 6 Legal and other professional fees 8 9 Interest .............. 9 10 Repairs 10 11 Taxes 11 12 Utilities 12 13 Wages and salaries 13 14 Depreciation (see instructions) 14 15 Other (list) ~ 15 16 Total expenses for each property. Add lines 3 throunh 15 16 020142 1Q-1El-OO 10141210 706230 11400 6 2000.08000 BOCa ASSOCIATES Form 8825 (2000) 11400_1 BOCO ASSOc;IATE;3 , 23,2]73089 SCHEDULE K NET INCOME (LOSS) FROM RENTAL REAL ESTATE STATEMENT 1 DESCRIPTION OFFICE SHOP, GARAGE AND LAND MECHANICSBURG, PA 17055 TOTAL TO SCHEDULE K, LINE 2 AMOUNT 11,273. 11,273. SCHEDULE K INTEREST INCOME STATEMENT 2 DESCRIPTION U.S. BONDS OTHER PNC BANK 640. 640. TOTAL TO SCHEDULE K, LINE 4A SCHEDULE K OTHER DEDUCTIONS STATEMENT 3 DESCRIPTION AMOUNT SECTION 754 DEPRECIATION - RENTAL REAL ESTATE 1,225. 1,225. TOTAL TO SCHEDULE K, LINE 11 OTHER RENTAL EXPENSES STATEMENT 4 PROPERTY: OFFICE SHOP, GARAGE AND LAND MECHANICSBURG, PA 17055 DESCRIPTION AMOUNT AMORTIZATION MISCELLANEOUS EXPENSE TOTAL TO RENTAL SCHEDULE, LINE 15 90. 15. 105. 10141210 706230 11400 7 STATEMENT(S) 1, 2, 3, 4 2000.08000 BOCO ASSOCIATES 11400__1 BOCO ASSOC;IATE$ 23,211l3il89 GROSS RENTAL INCOME 5 STATEMENT PROPERTY: OFFICE SHOP, GARAGE AND LAND MECHANICSBURG, PA 17055 DESCRIPTION GROSS RENTAL INCOME OTHER INCOME TOTAL TO RENTAL SCHEDULE, LINE 2 10141210 706230 11400 8 2000.08000 BOCO ASSOCIATES AMOUNT 22,800. 106. 22,906. STATEMENT(S) 5 11400 1 1 SCHEDULE l<-~ (Form 1065) Department of the Treasury Internal Revenue service be innin Partner's Share of Income, Credits, Deductions, etc. For calendar year 2000 or tax year 2000 and endin 187 16 - 6 5 2 5 Partnershi 's identi in number Partnership's name, address, and ZIP code OMS N~ 1>45>-0099 2000 23 2373389 Partner's identi in number Partner's name, address, and ZIP code ZORA G BOWMAN 76 GREENS PRING DRIVE MECHANICSBURG PA 17055 A This partner is a general partner D limited partner D limited liability company member What type of entity is this partner? ~ INDIVIDUAL Is this partner a [X] domestic or a D foreign partner? Enter partner's O):~~~I~t~~~e (ii) ;;: of percentage of: Profit sharing Loss sharing OwnerShip of capitai OCO ASSOCIATES 3 LONG LANE ECHANICSBURG PA F Partner's share of liabilities: Nonrecourse Qualified nonrecourse financing Other 17055 B C o $ $ $ o. IRS Center where artnerst1i filed return: G 61.0000000% H 61.0000000% 61.0000000% CINCINNATI OH % % % Tax shelter registration number ~ Check here if this partnership is a pubiicly traded partnership as detined in section 469(k)(2) ............... D E Check a Iicable boxes: 1 D Final K-1 2 D Amended K-t J Anal"sis of "artner's canital account (a) Capital account at (b) Capital contributed (c) Partner's share of lines (d) Withdrawals and (e) Capital account at end 3,4, and 7, Form 1065, of year (combine beginning of year during year Schedule M-2 distributions columnsla\ihrounh (d\l (a) Distributive share item (b) Amount (c) 1040 filers enter the amount in column (b) on: 1 Ordinary income (loss) from trade or business activities O. } 2 Net income (loss) from rental real estate activities 6 877. See page e of Partner's Instructions forScneduleK-1 (Form 1065) 3 Net income (loss) from other rental activities ...... 4 Portfolio income (loss): a Interest 390. Sch. 8, Part I, line 1 .. b Ordinary dividends ............. .... Sch. S, Part II. line 5 ~ c Royalties Sch_ E, Part I, line 4 d. ............ . d Net short-term capitai gain (ioss) ..... ......................................... Sch. D, line 5, col. (f) E 0 e Net iong-term capital gain (loss): (1) 28% rate gain (loss) Sch. D, line 12, col. (g) u E (2) Total for year Sch. 0, line 12, col. (I) ................................................ ................. , Other portfolio income (loss) (attach schedule) ............................................. Enter on applicable lines of your return 5 Guaranteed payments to partner ... ......................... ) See pagee of Partner's Instructions 6 Net sec. 1231 gain (ioss) (other than casualty or theft) forScneduleK-1 (Form 1065) ....................... 7 Other income (loss' (attach schedule' . Enteron ........lIcable line 01 our return , 8 Charitable contributions (attach schedule) ...... ........ Sch. A, line 15 or 16 u~ 9 Section 179 expense deduction } "~ ............... ...... "0 See pages 7 and a 01 Partner's ~+:; 10 Deductions related to portfolio income (attach schedule) ................ ........... InstructionsforScheduleK-1 11 Other deductions (attach schedule' .............BEE...STATEMENT.. 1 225. (Form 1065) ~ 13 Other credits (Enteron applicable lines of your return) ~ ..................... ......................................... ............. . E~ 14a Interest expense on investment debts .......................................... Form 4952, line I lOCI) b {1 )Investment income included on lines 4a, 4b, 4c, and 4f above 390. } See page iii of Partner's Instructions ~"" ...... ~~ (2)lnvestment expenses included on line 10 above. forScheduleK-1 (Form 1065) -~ o. ~~ 15a Net earnings (loss) from self-employment O. Sch. SE, Section A or S ~. ._~ ,,~ b Gross farming or fishing income .- ....... 1 Y s.. p'g.' of p",",,', '00"""000 13 c Gross nonfarm income lor Schedule K-1 (Form 1065) ....... " 16 a Depreciation adjustment on property placed in service after 1986 31- } ~~~ See Partner's Inslructions for 't;;-=;:; b Adjusted gain or loss ScneduleK-1 (Form 1055)and ..-. ~"c3: Other adiustments and i.:x;;;fe;;;~~it~~~i;;;;~h~~h;duie'p Instructions for Form 6251 e 19 Tax-exempt interest income Form 1040, line Bb ~ 20 Other tax-exempt income .......................................... } . See pages iii and 10 of Partner's ~ 21 Nondeductible expenses 15 InstruclionsforScnedu\eK-1 22 Distributions of money (cash and marketable securities) (Form 1065) 23 Distributions of nronerh, other than monev ... JWA For Paperwork Reduction Act Notice, see Form 1065 Instructions. No Information Required for Page 2 Scheduie K-l (Form 1085) 2000 011161 05-15-00 10141210 706230 11400 2000.08000 BOCa ASSOCIATES 11400 1 1 BOCO ASSOl;:LATE.8. 23 -... 3 7.e 3 8 9 SCHEDULE K-1 OTHER DEDUCTIONS DESCRIPTION AMOUNT PARTNER INSTRUCTIONS SECTION 754 DEPRECIATION - RENTAL REAL ESTATE 1,225. SEE PARTNER INSTRUCTIONS FOR SCH K-1 1,225. TOTAL TO SCHEDULE K-1, LINE 11 SCHEDULE K-1 COLUMN C RECONCILIATION DESCRIPTION AMOUNT RENTAL REAL ESTATE INCOME (LOSS) INTEREST INCOME OTHER DEDUCTIONS 6,877. 390. <1,225.> TOTAL TO SCHEDULE K-1, ITEM J, COLUMN C 6,042. 10141210 706230 11400 10 Partner Number 1 2000.08000 BOCO ASSOCIATES 11400 1 2 SCHEDULE 1<.-1 (Form 1065) Department of the T~easury Internal Revenue Service be innin Partner's Share of Income, Credits, Deductions, etc. For calendar year 2000 or tax year 2000 and endin 187 - 3 6 -7 7 51 Partner,hi ',identi in number Partnership's name, address, and ZIP code OMB No. 1545-0099 . ' Partner's identi in number Partner's name, address, and ZIP code 2000 23 2373389 STEVEN BOWMAN 2999 DICKINSON AVENUE CAMP HILL PA 17011 A This partner is a [][I general partner o limited liability company member What type of entity is this partner? ~ INDIVIDUAL Is this partner a [][I domestic or a D foreign partner? Enter partner's (1):~=I~~~e 01):::0' percentage of: Profit sharing Loss sharing Ownership of capital D limited partnar OCO ASSOCIATES 3 LONG LANE ECHANICSBURG PA F Partner's share of liabilities: Nonrecourse ................. $ Qualified nonrecourse financing $ Other $ 17055 B C o o. IRSCenlerwhere artnershi filed return: G 35.0000000% H 35.0000000% 35.0000000% CINCINNATI OH % % % Tax shelter registration number ..... Check here if this partnership is a publicly traded partnership as defined in section 469(k)(2) D E Check a licable boxes: 1 DFina1K-1 2 D Amended K-1 J Analvsis of Dartner's canital account: (a) Capital account at (b) Capital contributed (c) Partner's share of lines (d) Withdrawals and (e) Capital account at end 3,4, and 7, Form 1065, of year {combine beginning of year during year Scheduie M-2 distributions columnsiaiihrounh (d\\ (a) Distributive share item (b) Amount (c) 1040 filers enter the amount in column (b) on: 1 Ordinary income (loss) from trade or business activities .......... O. } Net income (loss) from rental real estate activities 3 945. See page 6 01 Partner's Instructions 2 ............................................... for Schedule K-1 (Form 1065) 3 Net income (loss) from other rental activities 4 Portfolio income (loss): a Interest ... 224. Sch. B, Part I, line 1 Ui b Ordinary dividends ................... ..... Sch. B, Part 1I,line 5 0 0 c Royalties Sch. E, Part I, line 4 d- ..... ..... .... ................................ ~ d Net short-term capital gain (loss) Sch. D,line 5, col. (D E Net long-term capital gain (loss): (1) 28% rate gain (loss) Sch. D,line 12, col. (g) 0 e Q .E (2) Total for year ..................................... ...... ......... Sch. D.line 12, col. (f) f Other portfolio income (loss) (attach schedule) .... ......... .. ........ Enter on applicable lines of your return 5 Guaranteed payments to partner .................... } See page 6 of Partner's Insltuctions 6 Net sec. 1231 gain (loss) (other than casuaity or theft) ror Schedule K-1 (Form 1065) .............. ................... 7 Other income lioss! (attach schedule! . ................................... Enter en a Iicable line cf your return , 8 Charitable contributions (attach schedule) ...................... Sch. A, line 15 or 16 Q0 9 Section 179 expense deduction } ~~ ... "00 See pages 7 and 6 of Partner's ~.- 10 Deductions related to portfolio income (attach schedule) c~ ......... ............... Instructions for Scl1edule K-1 11 Other deductions (attach schedule! .. (Form 1065) ~ 13 Other credits (Enter on applicable lines of your return) ~ ............. .................. ~ E~ 14 a Interest expense on investment debts ............ Form 4952, line 1 10"' b(1)lnvestment income included on lines 4a, 4b, 4c, and 4fabove 224. } See page g otPartner's Instructicns ~.. ~~ (2)lnvestment expenses included on line 10 above. for SehedlJle K-1 (Form 1065) _0 -~ 0~ 15a Net earnings (ioss) from self-employment o . Sch. SE, Section A or B ~~ :C'E b Gross farming or fishing income ~- T s~ pag. 9 of p"",,', '",,,"ct'o", ~ () Gross nonfarm income fer Schedule K-1 (Form 1065) C Iii 18 a Depreciation adjustment on property placed in service after 1986 } See Partner's Instructions fer b Adjusted gain or loss Schedule K-1 (Form 1066) and Other adiustments and tax oreference items (attach schedule I lnstruetions tor Form 6251 < e 19 Tax-exempt interest income ....................................................... Form 1040, line Bb ~ 20 Other tax-exempt income } "' 21 Nondeductible expenses See pages g and 10 of Partner's 0 InstruotiCf'1sforScheduleK-1 22 Distributions of money (cash and marketable securities) (Form 1066) 23 Distributions of mODertv other than monev .. JWA For Paperwork Reduction Act Notice, see Form 1065 Instructions. No Information Required for Page 2 Schedule K-1 (Form 1065) 2000 011161 05-15-00 10141210 706230 11400 2000.08000 BOCO ASSOCIATES 11400 2 1 BOCO ASSO<;I)>.TE~ ' 23-2373389 SCHEDULE K-1 COLUMN C RECONCILIATION DESCRIPTION AMOUNT RENTAL REAL ESTATE INCOME (LOSS) INTEREST INCOME TOTAL TO SCHEDULE K-1, ITEM J, COLUMN C 3,945. 224. 4,169. 10141210 706230 11400 12 Partner Number 2 2000.08000 BOCO ASSOCIATES 11400 1 3 SCHEDULE 1(,-1 (Form 1065) Depaftt."l'IentoflheTr.eBsury Internal Revenue Service be innin Partner's Share of Income, Credits, Deductions, etc. For calendar year 2000 or tax year 2000 and endin 187- 3 6 - 7 7 5 2 Partnershi 's identi in number Partnership's name, address, and ZIP code OMS No. 1545-0099 . ' Partner's identi in number Partner's name, address, and ZIP code 2000 23 2373389 PATRICIA BOWMAN DAPP 207 PINE WOODS ROAD WELLSVILLE PA 17365 A This partner is a CXJ general partner D limited liability company member What type of entity is this partner? ~ INDIVIDUAL Is this partner a [X] domestic or a D foreign partner? Enter partner's ~)C~~~~;:i;=t~~e (ii) ;~~ of percentage at Profit sharing Loss sharing Ownership of capital Dlimitedpartner OCO ASSOCIATES 3 LONG LANE ECHANICSBURG PA F Partner's share of liabilities: Nonrecourse Qualified nonrecourse financing Other 17055 B C D $ $ $ o. IRS Center where artnershi filed return: G 4.0000000% H 4.0000000% 4.0000000% CINCINNATI OH % % % Tax shelter registration number ..... Check here if this partnership is a publicly traded partnership as defined in section 469(k)(2) . ................. D E Check a licable boxes: 1 DFina1K-1 2 D Amended K-l J Analvsis of oartner's caoltal account (a) Capital account af (b) Capital contributed (c) Partner's share of lines (d) Withdrawals and (e) Capital account at end 3,4, and 7, Form 1065, of year (combine beginning of year during year Schedule M-2 distributions columns (ai throuoh (d)) (a) Distributive share item (b) Amount (c) 1040 filers enter the amount in column (b) on: 1 Ordinary income (loss) from trade or business activities O. } 2 Net income (loss) from rental real estate activities 451- See page 6 of Partner's Instructions ............ for Schedule K-1 (FOfm 1065) 3 Net income (loss) from other rental activities .... 4 Portfolio income (loss): a Interest .................................................................. 26. Sch. B, Part I, line 1 " b Ordinary dividends ................... Sch. B, Part 1I,line 5 .. 0 c Royalties Sch. E, Part I, line 4 e- ...................... ~ d Net short-term capital gain (loss) Sch. D, iine 5, col. (f) E 0 e Net iong-ferm capital gain (loss): (1) 28% rate gain (loss) Sch. D, line 12, col. (g) u .: (2) Total for year .............. ........... Sch. D, line 12, col. (f) f Other portfolio income (loss) (attach scheduie) Enter on applicable lines of yoor return 5 Guaranteed payments to partner .............. } Seepage 6 of Partner's Instructions 6 Net sec. 1231 gain (loss) (of her than casualty or theft) . . forScheduleK.1 (Form 1065) 7 Other income (loss) (attach schedule! ... Enteron acclicable line ofvourreturn , 6 Charitable contributions (attach schedule) ....... Sch. A, line 15 or 16 u.. 9 Section 179 expense deduction } ~" ... ............................................... '00 See pages 7 and 8 of Parlner's ~.- 10 Deductions related to portfolio income (attach schedule) o~ .. ...................... Inslructlons for Schedule K-1 11 Other deductions (attach schedule! . (FOfm10l3S) ~ 13 Other credits (Enter on applicable lines of your return) C ................................ ..................... ~ . 14a Interest expense on investment debts Form 4952, line 1 E~ 1il'" b(1)lnvestment income included on lines 4a, 4b, 4c, and 4f above 26. } See page 9 of Partner's InstnJctlons ~.. .51ii (2)lnvestment expenses included on line 10 above. for Schedule K-1 (Form 1065) -~ ..- 15a Net earnings (loss) from self-employment O. Sch. SE, Section A or B ~~ :a'E b Gross farming or fishing income ~- ) See page 9 of Partner's Instructions - () Gross nonfarm income for Schedule K-1 (Form 1085) C '" 16 a Depreciation adjustment on property placed in service after 1986 } ~ai See Partner's Instructions for -:;;....... b Adjusfed gain or loss Schedule K.1 (Form 1065) and .." ................. ~"'a: Other adiustments and tax oreference items {attach schedule! Instructions for Form 6251 e 19 Tax-exempt interest income Form 1040,IIne 8b - 20 Other tax-exempt income } ~ See pages 9 and 10 of Partner's .c: 21 Nondeductible expenses ~ Instructions for Schedule K-1 0 Distributions of money (cash and marketable securities) (Form 1085) 22 23 Distributions of DrODertv other than monev ... JWA For Paperwork Reduction Act Notice, see Form 1065 Instructions. No Information Required for Page 2 Schedule K.l (Form 1065) 2000 011161 05.15-00 10141210 706230 11400 2000.08000 BOCO ASSOCIATES 11400 3 1 . BOCO ASSOCIATE,\; 23-2373389 SCHEDULE K-1 COLUMN C RECONCILIATION DESCRIPTION RENTAL REAL ESTATE INCOME (LOSS) INTEREST INCOME AMOUNT TOTAL TO SCHEDULE K-1, ITEM J, COLUMN C 451. 26. 477. 10141210 706230 11400 14 Partner Number 3 2000.08000 BOCO ASSOCIATES 11400 1 Fo~ Department of the Treasury Internal Revenue Service ,1065 /";:;;, tf\ [j::S~'~nerShiP \ t 1, ~ ' r ,--- ~:':':':€or ~~~'ye4J9Q9, or lax ar beginning Return of Income OMS No. 1545-0099 , '999, and ending 1999 A Principal business activity Name of partnership o ~~~~:r identification C Business code number U" Ih. 'RS OCO ASSOCIATES label. Other- Number, street, and room or suite no. ~f a P.O. box, see page 12 of the instructions.) ;,'::;. 3 LONG LANE print City or lown, state, and ZIP code " type. 23-2373389 RENTAL 8 Principal product or service E Date business started 01 01 1986 REAL ESTATE F Total assets 531110 G Check applicable boxes: (1) Change in address H Check accounting method: (11 [X] Cash (21 D Accrual (31 D Other (specify) ~ I Number of Schedules K.1. Attach one for each person who was a partner at any time during the tax year ..... (4) 3 Caution: Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more information. 1 a Gross receipts or sales 1a b Less returns and allowances 1b 1c 2 Cost of goods sold (Schedule A, line 8) 2 ~ 3 Gross profit Subtract line 2 from line 1c 3 E 0 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach schedule) 4 u .5 5 Net farm profit (loss) (attach Schedule F (Form 1040)) 5 6 Net gain (loss) from Form 4797, Part II, line 18 6 7 Other income (loss) (attach schedule) 7 8 Total income Iloss\. Combine lines 3 throuoh 7 8 9 Salaries and wages (other than to partners) (less employment credits) 9 .. 10 Guaranteed payments to partners 10 c 0 11 RepairS and maintenance 11 .. l!l 12 Bad debts 12 ~ 13 Rent 13 . ,g 14 Taxes and licenses 14 ~ c 15 Interest 15 0 ...............1.,1.... .. 16 a Depreciation (if required, attach Form 4562) ...... 16a u :> ~ b Less depreciation reported on Schedule A and elsewhere on return ....... 116bl 16c ~ ,~ 17 Depletion (Do not deduct oil and gas d.pl.tion.) 17 ~ ~ 18 Retirement plans, etc. 18 .!!!. ~ 19 Employee benefit programs 19 c 0 .. u :> 20 Other deductions (attach schedule) 20 ." ~ c 21 Total deductions. Add the amounts shown in the far riaht column for lines 9 throuoh 20 21 22 Ordinarv income Iloss\ from trade or business activities. Subtract line 21 from line 8 22 O. Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, Pl.... correct, and complete. DeclaratIon of preparer (other than general partner or limited liability company member) is based on aU information of which prepcver has any knowledge. Sign ~ Signature of general partner or limited liability company member ~O'I' Here Preparer's ~ ID'" 11 Preparer's SSN 01 PTIN Paid signature Check if ~ D 178-38-3454 self-employed Preparer's Fi~',""",,(~ "'WAGGONER. FRUTIGER & DAUB I E1N "'23-1583249 Use Only yours If ,.... 200 I Z'P,od. ..17050-3649 "If-.mploy.d) 5 0 0 6 E TRINDLE RD SUITE and address MECHANICSBURG PA JWA For Paperwork Reduction Act Notice, see separate instructions. 911001 11-24-99 Form 1065(1999) Form 1065 (19991. 'BOOO 'ASSOCIATES 23-2373389 Paoe 2 I Schedule A I Cost of Goods Sold 1 Inventory at beginning of year 1 2 Purchases less cost of items withdrawn for personal use 2 3 Cost of labor 3 4 Additional section 263A costs (attach schedule) 4 5 Other costs (attach schedule) 5 6 Total. Add lines 1 through 5 6 7 Inventory at end of year 7 B Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1,line 2 B 9 a Check all methods used for valuing closing inventory: (i) D Cost as described in Regufations section 1.471-3 (ii) D Lower of cost or market as described in Regulations section 1.471-4 (iii) D Other (specify method used and attach explanation) ~ b Check this box if there was a writedown of 'subnormal" goods as described in Regulations section 1.471-2(c) . c Check this box jf the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) d Do the rules of section 263A (for property produced or acquired for resale) apply fa the partnership? e Was there any change in determining quantities, cost, or valuations between opening and closing inventory? h ~D ~D nDy~s DNa DVes D No If 'Yes" attac exolanatlon. I Schedule B I Other Information Ves No 1 What type of entity is filing this return? Check the applicable box: a [X] General partnership b D Limifed partnership c D Limited liabilify company d D Limited liability partnership e DOther~ 2 Are any partners in this partnership also partnerships? X 3 Is this partnership a partner in another partnership? . X 4 Is this partnership subject to the consolidated audit procedures of sections 6221 through 6233? If "Yes,' see Designation of Tax Matters Partner below X 5 Does this partnership meet All THREE of the following requirements? a The partnership's total receipts for the tax year were less than $250,000; b The partnership's total assets at the end of the tax year were less than $600,000; AND c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. If 'Ves," the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item J on Schedule K-1 X 6 Does this partnership have any foreign partners? X 7 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? X B Has this partnership filed, or is it required to file, Form 8264, Application for Registration of a Tax Shelter? X 9 At any time during the calendar year 1999, did the partnership 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 the instructions for exceptions and filing requirements for Form TO F 90-22.1.) If 'Ves," enter the name of the foreign country. .... X 10 During the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If 'Yes,' the partnership may have to file Form 3520 or 926. See page 18 of the instructions X 11 Was there a distribution of property or a transfer (e.g., by sale or death) of a partnership interest during the tax year? If "Ves," you may elect to adjust the basis of the partnership's assets under section 754 by attaching the statement described under Elections Made Bv the Partnershin . X DeSIgnation of Tax Matters Partner Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return: Name of designated TMP Address of designated TMP ~ STEVEN BOWMAN ~ 2999 DICKINSON AVENUE CAMP HILL. PA 17011 Identifying number ofTMP ~ 187 - 3 6 -77 51 Form 1065(1999) 9"0" 11-24-99 10290410 706230 11400 2 1999.08200 BOCO ASSOCIATES 11400_1 Form 106511999. 'BOGO' ASSOCIATES lSchedule K I Partners' Shares of Income, Credits Deductions etc. la) Distributive share items 1 Ordinary income (loss) from trade or business activities (page 1, line 22) 2 Net income (loss) from rental real estate activities (attach Form 8825) .....SEE.1.3S.T.1ATEMENT 3 a Gross income from other rental activities b Expenses from Of her renfal acfivities (attach schedule) ................................. I 3b I 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 1065)) . Net long-term capital gain (loss) (attach Schedule D (Form 1065)): (1) 28% rate gain (loss) ~ (2) Total for year. f Other portfolio income (loss) (attach schedule) 5 Guaranteed payments to partners 6 Net section 1231 gain (loss) (other than due to casualty or theft) (attach Form 4797) 7 Dther income Iloss) (aftach schedule) .. 8 Charitable contributions (attach schedule) 9 Section 179 expense deduction (attach Form 4562) 10 Deductions related to portfolio income (itemize) 11 Dther deductions (attach schedule) . 12 a Low-income housing credit: (1) From partnerships to which section 42(j)(5) applies for property placed in service before 1990 (2) Other than on line 12a(1) for property placed in service before 1990 (3) From partnerships to which section 42(j)(5) applies for property placed in service after 1989 (4) Dther than on line 12a(3) tor property placed in service after 1989 b Qualified rehabilitation expenditures related to rental real estate activities (attach Form 3468) c Credits (other than credits shown on lines 12a and 12b) related to rental real estate activities d Credits related to other rental activities 13 Other credits. , 1;) 14 a Interest expense on investment debts 1;)_C1l ~ is b (1) Investment income included on lines 4a, 4b, 4c, and 4f above C E c: 12\ Investment exoenses included on line 10 above >. 15 a Net earnings (loss) from self-employment ,o~ :!::c.c b Gross farming or fishing income JlE" wEe Gross nonfarm income 16 a Depreciation adjustment on property placed in service after 1986 b Adjusted gain or loss e Depletion (other than oil and gas) d (1) Gross income from oil, gas, and geothermal properties (2) Deductions allocable to oil, gas, and geothermal properties e Other adjustments and tax oreference items (attach schedule\ 17 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 applicable deductions and losses (attach schedule) ...__........... e Total foreign taxes (check one): ~ D Paid D Accrued f Reduction in taxes available for credit (attach schedule) n Dther tore inn tax Information (attach schedule) 18 Section 59(e)(2) expenditures:. Type ~ 19 Tax-exempt interest income 20 Other tax-exempt income 21 Nondeductible expenses 22 Distributions of money (cash and marketable securities) 23 Distributions of property other than money......... ........ .......... ........... ... ....... 24 Other items and amounts reauired to be reoorted senaratell/ to nartners (attach schedul~) . ...1, " ~ o =- .. E o <.> .5 .......... .. .......s.EE:..SnTEMEN'l:'.:l.. ~ ~ o "' <.> ~ " .. c .................BEE..BTATEMENT ..3.. l!l '6 l'! o ".. ~<.> ..~ Sl1lCI'J i.! E E.... -~ 1;)c..- ,2.~ :il- ~ .. )( {2 ~ Cl .ij l5 u. b Amount ~ l; J:: ~ o 911021 11-24-99 10290410 706230 11400 3 1999.08200 BOCO ASSOCIATES 1 2 3e 4a 4b 4e 4d ~ 4el21 41 5 6 7 8 9 10 11 12a/1\ 12al21 12a 131 12al41 12b 12e 12d 13 14. 14bl1l 14bl21 15. 15b 15e 16a 16b 16e 16dl1\ 16d/2\ 16. 17e 17d 17e 171 170 18b 19 20 21 22 23 23 2373389 Pane 3 Ib'rotal amount o. 9 404. 748. 1 225. 748. o. 31. 5 700. Form 1065 (1999) 11400 1 Form 1065 (1999, .BOGO' ASSOCIATES 23-2373389 Page 4 Analysis of Net Income (Lossl I 1 Net income (loss). Combine Schedule K,lines 1 through 7 in column (b). From the result, subtract the sum of Schedule K, lines a throuoh 11 14a 17e and lab .................. ................. 1 8 927. 2 Analysis by (i) Corporate (ii) Individual (iii) Individual (iv) Partnership (v) Exempt (vi) Nominee/Other partner type: (active) (passive) organization a General partners 8 927. b Limited oartners IScheduleLI Balance Sheets per Books INot required if Question 5 on Schedule B is answered 'Yes:) Beainninn at tax vear End af tax vear Assets lal Ibl leI Idl 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 Mortgage and real estate loans 8 Other investments (attach schedule) 9a Buildings and other depreciable assets b Less accumulated depreciation lOa Depletable assets b Less accumulated depletion 11 Land (net of any amortization) 12a Intangible assets (amortizable only) b Less accumulated amortization 13 Other assets (attach schedule) 14 Total assets Liabilities and Capital 15 Accounts payable 16 Mortgages, notes, bonds payable in less than 1 year 17 Other current liabilities (attach schedule) 18 All nonrecourse loans 19 Mortgages, notes, bonds payable in 1 year or more 20 Other liabilities (attach schedule) 21 Partners' capital accounts 22 Total liabilities and capital I I Reconciliation of Income (Loss) per Books With Income (Loss) per Return . ScheduleM-t (Not required if Question 5 an Schedule B is answered 'Yes: See page 29 of the instructions.) 1 Net income (loss) per books 6 Income recorded on books this ~ear not 2 Income included on Schedule K, lines 1 through included on Schedule K, lines 1 hrough 7 (itemize): 4,6, and 7, not recorded on books this year a Tax-exempt interest $ (itemize): 3 Guaranteed payments (other than health 7 Deductions included on Schedule K,lines 1 insurance) through II, 14a, 17e, and lab, nat charged 4 Expenses recorded on books this year not against book income this year (itemize): included on Schedule K,lines 1 through a Depreciation $ II, 14a, 17e, and lab (itemize): a Depreciation $ b Travel and entertainment $ 8 Add lines 6 and 7 9 Income (loss) (Analysis of Net Income (Loss), 5 Add lines 1 throuQh 4 line 1 l. Subtract line a from line 5 . I Schedule M.21 Analvsis of Partners' Capital Accounts Not reauired if Question 5 on Schedule 8 is answered "Yes:) 1 Balance at beginning of year 6 Distributions: a Cash 2 Capital contributed during year b Property 3 Net income (loss) per books 7 Other decreases (itemize): 4 Other increases (Itemize): 8 Add lines 6 and 7 5 Add lines 1 through 4 9 Balance at end of year. Subtract line a from line 5 911041 11-24-99 10290410 706230 11400 4 1999.08200 BOCO ASSOCIATES Form 1065 (1999) 11400 1 199Q BOCO ASSOCIATES 23-2373389 Page 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 (c) of Section A, all of Section 8, and Section C if applicable. Section A - Depreciation and Other Information (Caution: See instructions for limits for passenger automobiles.) 23a Do you have evidence to support the business/investment use claimed? DVes DNa 23b If "Yes" is the evidence written? DYes D No (a) (b) Date (e) (d) (e) (I) (g) (h) (I) Type of property placed in Business/ Cost or Basis for depreciation Recovery Methodl Depreciation Elected (list vehicles first) service investment other basis (buSiness/investment period Convention deduction section 179 use percentage use only) cost 24 Prooertv used more than 500/0 in a CJ ualified business use: % % % 25 Prooertv used 500/0 or less in a aualified business use: % S/L. % S/L. % S/L. 26 Add amounts in column (h). Enter the total here and on line 20, page 1 ................................ .................. I 26 27 Add amounts in column m. Enter the total here and on line 7. Dace 1 ..................................~............................................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," or related person. If you provided vehicles to your employees, first answer the questions in Section C to see jf you meet an exception to completing this section for those vehicles. (a) (b) (e) (d) (e) (I) 28 Total business/investment miles driven during the Vehicle Vehicle Vehicle Vehicle Vehicle Vehicle year (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 through 30 ............................... Ves No Ves No Ves No Ves No Ves No Ves No 32 Was the vehicle available for personal use during off.duty hours? ................................... 33 Was the vehicle used primarily by a more than 5% owner or related person? ..... ............ 34 Is another vehicle available for personal use? Section C - Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons. 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 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? ............. ................................................. ................. ......... 3B 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? ......................................... ............. ............. Note: If your answer to 35, 36, 37, 38, or 39 is "Yes," you need not complete Section B for the covered vehicles. IParfV11 Amortization (a) I, (b) tel (d) (e) (I) Description of costs Daleamorlizalion Amortizable Code Amortization Amortization begins amount section periodorpercentaoe for this year 40 Amortization of costs that begins during your 1999 tax year: .< REFINANCING COSTS 1072799 450. 60M 38. 1 41 Amortization of costs that began before 1999 ..1 41 99. 42 Total. Enter here and on "Other Deductions" or "Other Expenses" line of your return I 42 137. .......................................... Form 4562 (1999) 916252 10-18-99 10290410 706230 11400 6 1999.08200 BOCO ASSOCIATES 11400 1 Depreciation a'nd Amortization Detail OFFICE SHOP GARAGE AND LAND MECHANICS R 1 - Description of property Asset Number I Date II Lf I L 'I Cost or I Basis f Accumulated I Current year placed Method/ ] e me in service IRC sec. or rate No. other basis reduction dap reciatio n/amortization deductIOn 1DRGANIZATION COSTS 1011011851709 1180M 1 411 956.1 1 956.1 O. 2~OMMERCIAL BUILDING .101lO11851SL 118.00119 I 153 023.1 I 116 464.1 7 651. 3REFINANCING COSTS 1101011921 15M 411 1 2 319.1 1 2 319.1 O. 4COMMERCIAL BUILDING 10110 119 41sL 139 . 00117 I 47 778.1 1 6 076.1 1 225. 5REFINANCING COSTS 106,011941 160M 141 I 1 186.1 I 1 087.1 99. 6REFINANCING COSTS 1071271991 160M 140 1 450.1 I I 38. * TOTAL RENTAL DEPRECIATION & AMORTIZATION 1 I I 1 1 I I 205 712.1 0.1 126 902.1 9 013. LESS: SECTION 754 DEPRECIATION I 1 1 I I 1 I I I I 1 225. NET DEPRECIATION I I , 1 1 1 I I 1 I 7 788. I 1 1 1 I I I I I I I 1 , I I 1 I I I I I I I I I I I I 1 I 1 1 I I I 1 I I I I I I 1 I I I 1 I 1 1 , , I I I I I 1 1 I I I I 1 1 1 I I 1 I , , I I I I 1 I I I 1 , I I I 1 I 1 1 I I I 1 1 I 1 I I I I 1 1 1 I I I 1 I 1 I I I 1 I I I I I I I 1 1 I 1 1 I I I I I I I 1 I I I I 1 I 1 , 1 I 1 I 1 I 1 I I 1 I I I I I 1 I I I I I I I I I 1 I I I I I 1 I I I I I I 916261 05-15-99 # - Current year section 179 (0) . Asset disposed 6.1 1999.08200 BOCO ASSOCIATES 11400 1 10290410 706230 11400 Focm 8825 Rental Real Estate Income and Expenses of a Partnership or an S Corporation .... See instructions on page 2. ~ Attach to Form 1065, Form 1065-8, or Form 11205. OMBNo.1545-1186 Department of the Treasury Internal RevenueServica N~. 1999 Employer identification number BOCO ASSOCIATES 1 Show the kind and location of each property. See page 2 for additional orooerties. AOFFICE SHOP. GARAGE AND LAND MECHANICSBURG. PA 17055 23-2373389 B c o Properties Rental Real Estate Income A B C 0 2 Gross rents 2 22 800. Rental Real Estate Expenses 3 Advertising 3 4 Auto and travel 4 5 Cleaning and maintenance 5 6 Commissions 6 7 Insurance 7 8 Legal and other professional fees 8 845. 9 Interest 9 4 578. 10 Repairs 10 11 Taxes 11 12 Utilities 12 13 Wages and salaries 13 14 Depreciation (see instructions) 14 7 651. 15 Other (list) ~ STMT...4.. 322. 15 16 Total expenses for each property. Add lines 3 through 15 16 13 396. 17 Total gross rents. Add gross rents from line 2, columns A through H 17 22 800. 18 Total expenses. Add total expenses from line 16, columns A through H 18 13 396. 19 Net gain (loss) from Form 4797, Part 1I,Iine 18, from the disposition of property from rental real estate activities 19 20a Net income (loss) from rental real estate activities from partnerships, estates, and trusts in which this partnership Of S corporation is a partner or beneficiary (from Schedule K.1) 20a b Identify below the partnerships, estates, Of trusts from which net income (loss) is shown on line 20a. Attach a schedule if more space is needed: (1) Name (2) Employer identification number 21 Net income (loss) from rental real estate activities. Combine lines 17 through 20a. Enter the result here and on: . Form 1065 or 11208: Schedule K, line 2, or 21 9 404. . Form 1065-8: Part I line 4 .... JWA 920141 10-22-99 For Paperwor1c Reduction Act Notice, see page 2 of form. Form 8825 (1999) 10290410 706230 11400 7 1999.08200 BOCa ASSOCIATES 11400_1 BOCO ASSOCIATES 23-2373389 SCHEDULE K NET INCOME (LOSS) FROM RENTAL REAL ESTATE STATEMENT 1 DESCRIPTION OFFICE SHOP, GARAGE AND LAND MECHANICSBURG, PA 17055 TOTAL TO SCHEDULE K, LINE 2 AMOUNT 9,404. 9,404. SCHEDULE K INTEREST INCOME STATEMENT 2 DESCRIPTION U.S. BONDS OTHER PNC BANK 748. TOTAL TO SCHEDULE K, LINE 4A 748. SCHEDULE K OTHER DEDUCTIONS STATEMENT 3 DESCRIPTION AMOUNT SECTION 754 DEPRECIATION - RENTAL REAL ESTATE 1,225. 1,225. TOTAL TO SCHEDULE K, LINE 11 OTHER RENTAL EXPENSES STATEMENT 4 PROPERTY: OFFICE SHOP, GARAGE AND LAND MECHANICS BURG , PA 17055 DESCRIPTION AMOUNT TOTAL TO RENTAL SCHEDULE, LINE 15 137. 185. 322. AMORTIZATION MISCELLANEOUS EXPENSE 10290410 706230 11400 9 STATEMENT(S) 1, 2, 3, 4 1999.08200 BOCO ASSOCIATES 11400 1 ALTERNATIVE MINIMUM TAX DEPRECIATION REPORT ASSET AMT AMT REGULAR AMT AMT NUMBER DESCRIPTION METHOD LIFE DEPRECIATION DEPRECIATION ADJUSTMENT 2 ....OMMERCIAL BUILDINC SL 18.00 7 651. 7 651. o. 4 t"'OMMERCIAL BUILDINC SL 40.00 1 225. 1 194. 31. rrOTALS 8 876. 8 845. 31. MACRS AMT IUJJUSTMENT 31. 928161 05-15-99 10290410 706230 11400 9.1 1999.08200 BOCO ASSOCIATES 11400 1 SdIEDUL{l<-1 (Form,1065) Department of the Treasury Internal Revenue Service be innin Partner's Share of Income, Credits, Deductions, etc. For calendar year 1999 or tax year 1999 and endin Partnershi 's identi in number Partnership's name, address, and ZIP code OMB No. 1545-0099 1999 ~ 23-2373389 Partner', idenli in number ~ 187 -16 - 6 525 Partner's name, address, and ZIP code ZORA G BOWMAN 76 GREENS PRING DRIVE MECHANICSBURG PA 17055 A This partner is a CXJ general partner D limited partner D limited liability company member What type of entity is this partner? ~ INDIVIDUAL Is this partner a [X] domestic or a D foreign partner? Enter partner's (i):~~~i:;=:~e (ii) ~n~ of percentage at Profit sharing Loss sharing Ownership of capital OCO ASSOCIATES 3 LONG LANE ECHANICSBURG PA F Partner's share of liabilities: Nonrecourse Qualified nonrecourse financing Other 17055 B C D $ $ $ o. % Tax shelter registration number .... Check here if this partnership is a publicly traded partnership as defined in section 469(k)(2) D IRS Center where artnershi filed return: G 61.0000000% H 61.0000000% 61.0000000% PHILADELPHIA PA % % E Check a licable boxes: 1 DFina1K-1 2 D Amended K-1 J Analvsis of oartner's cauital account: {ai Capital account at (b) Capital contributed (c~ Partner's share of lines (d) Withdrawals and (e) Capital account at end ,4, and 7, Form 1065, of year (combine eginning of year during year Schedule M-2 distributions columns (a) through (d)) (a) Distributive share item (b) Amount (c) 1040 filers enter the amount in column (b) on: 1 Ordinary income (loss) from trade or business activities o. } 2 Net income (loss) from rental real estate activities 5 736. See page 6 of Partner's Instructions for Schedule K-1 {Form 1065) 3 Net income (loss) from other rental activities 4 Portfolio income (loss): a Interest 456. Sch. B, Part I, line 1 Ui" b Ordinary dividends Sch. B, Part II, line 5 0 0 c Royalties Sch. E, Part I, line 4 d. ~ d Net short-term capital gain (loss) Sch. D, line 5, col. (f) E Net long-term capital gain (loss): (1) 28% rate gain (loss) Sch. 0, line 12, col. (g) 0 e u .E (2) Total for year Sch. D, line 12, col. (f) f Other portfolio income (loss) (attach schedule) Enter on applicable lines of your return 6 Guaranteed payments to partner ) See page 6 of Partner's Instructions 6 Net sec. 1231 gain (loss) (other than casualty or theft) . for Schedule K-1 (Form 1065) 7 Other income Ilossl (attach schedulel . Enteron ::.oolicablelineofvnurreturn 00 B Charitable contributions (attach schedule) Sch. A, line 15 or 16 "" 9 Section 179 expense deduction } "'0 See pages 7 and 8 of Partner's ~+i 10 Deductions related to portfolio income (attach schedule) Instructions for ScheduleK-1 11 Other deductions lattach schedulel.....SEESTATEMENT.. 1 225. (Form 1085) - 13 Other credits (Enter on applicable lines of your return) " ~ . E~ 14a Interest expense on investment debts Form 4952, Iine1 1ij'" b(1)lnvestment income included on lines 4a, 4b, 4c, and 4f above 456. } ~'" See page Q of Partner's Instructions ,,- (2)lnvestment expenses included on line 10 above for Schedule K-1 (Form 1085) _0 -~ 0~ 15a Net earnings (loss) from self-employment o. Sch. SE, Section A or B -~ :a 1: b Gross farming or fishing income ~- ) See page Q of Partner's Instructions ~ () c Gross nonfarm income forScheduleK-1 (Form 1065) '" 16. Depreciation adjustment on property placed in service after 1986 31. } IiI See Partner's Instructions for b Adjusted gain or loss Schedule K-1 (Form 1085) and Other ad'ustments and tax oreference items (attach schedule) Instructions for Form 6251 e 19 Tax-exempt interest income Form 1040, line 8b Ii; 20 Other tax-exempt income } .t:: 21 Nondeductible expenses See pages Q and 10 of Partner's - Instructions for Schedule K-1 0 (Form 1065) 22 Distributions of money (cash and marketable securities) 2' Distributions of orooertv other than monev ... JWA For Paperwork Reduction Act Notice, see Form 1065lnstruclions. No Informalion Required for Page 2 Scbedule K-l (Form 1065) 1999 911161 05-15-99 10290410 706230 11400 1999.08200 BOCO ASSOCIATES 11400 1 1 BOCO ASSOCIATii:S. 23-2373389 SCHEDULE K-1 OTHER DEDUCTIONS DESCRIPTION AMOUNT PARTNER INSTRUCTIONS SECTION 754 DEPRECIATION - RENTAL REAL ESTATE 1,225. SEE PARTNER INSTRUCTIONS FOR SCH K-1 1,225. TOTAL TO SCHEDULE K-1, LINE 11 10290410 706230 11400 11 Partner Number 1 1999.08200 BOCO ASSOCIATES 11400 1 . 2 SCHEDULE )(-j (Form.1065) Department of the Treasury Internal Revenue $ervice be innin Partner's Share of Income, Credits, Deductions, etc. For calendar year 1999 or tax year 1999 and endin 187 36 7751 Partnershi 's iden!i in number Partnership's name, address, and ZIP code OMS No. 1545-0099 1999 ~ 23 2373389 Partner's identi in number ..... Partner's name, address, and ZIP code STEVEN BOWMAN 2999 DICKINSON AVENUE CAMP HILL PA 17011 A This partner is a [X] general partner D limited liability company member What type of entity is this partner? ~ INDIVIDUAL Is this partner a [X] domestic or a D foreign partner? Enter partner's (i)Q~~~~i:;~:~e (ii) ~~ of percentage at Profit sharing Loss sharing Ownership of capital Dlimitedpartner OCO ASSOCIATES 3 LONG LANE ECHANICSBURG PA F Partner's share of liabilities: Nonrecourse Qualified nonrecourse financing Other 17055 B C o $ $ $ o. IRS Center where artnershi filed return: G 35.0000000% H 35.0000000% 35.0000000% PHILADELPHIA PA % % % Tax shelter registration number .... Check here if this partnership is a publicly traded partnership as defined in secfion 469(k)(2) D E Check a Iicable boxes: 1 DFinalK-l 2 D Amended K-l J Analvsis of nartner's caDital account: (ai Capit~l account at (b) Capital contributed (c] Partner's share of lines (d) Withdrawals and (e) Capital account at end ,4, and 7, Form 1065, of year (combine egmnmg of year during year Schedule M-2 distributions columns (a) through (d)) (a) Distributive share item (b) Amount (c) 1040 filers enter the amount in column (b) on: 1 Ordinary income (loss) from trade or business activities o. } 2 Net income (loss) from rental real estate activities 3 292. See page 6 of Partner's Instructions for Schedule K-1 (FOI"m 1065) 3 Net income (loss) from other rental activities 4 Portfolio income (loss): a Interest 262. Sch. S, Part I, line 1 " b Ordinary dividends Sch. S, Part II, line 5 '" 0 c Royalties Sch. E, Part I. line 4 do GO d Net short-term capital gain (loss) Sch. 0, line 5, col. (f) E 0 e Net long-term capital gain (loss): (1) 28% rate gain (loss) Sch. 0, line 12, col. (g) u .E (2) Total for year Sch. 0, line 12. col. (I) 1 Other portfolio income (loss) (attach schedule) Enter on applicable lines 01 your return 5 Guaranteed payments to partner } See page 6 of Partner's Instructions 6 Net sec. 1231 gain (loss) (other than casualty or theft) . lor Schedule K.1 {Form 1065) 7 Other income Ilossl (aftach schedulel Enter on a~~licable line of urreturn b.. 8 Charitable contributions (attach schedule) Sch. A, line 15 or 16 ~~ 9 Section 179 expense deduction } "00 See pages 7 and 8 of Partner's ~~ 10 Deductions related to portfolio income (attach schedule) Instructions for Schedule K-1 11 Other deductions lattach schedule I . (FOI"m1065) - 13 Other credits (Enter on applicable lines of your return) ~ GO . Interest expense on investment debts E"! 14a Form 4952, Iine1 1;;'" b (1 )Investment income included on lines 4a, 4b, 4c, and 4f above 262. } See page 9 of Partner's Instructions ~'" ~- (2)lnvestment expenses included on line 10 above. for SchedUle K-1 (Form 1065) -'" _GO .ll~ 15a Net earnings (loss) from self-employment o. Sch. SE. Section A or S :a'E b Gross farming or fiShing income GO- ) See page 9 01 Partner's Instructions 0 c Gross nonfarm income for Schedule K-1 (Form 1065) ~ 16. Depreciation adjustment on property placed in service after 1986 } :ii:;g SeePartner'slnstructionsfOl" E.....~ b Adjusted gain or loss Schedule K.1 (Form 1065) and ~-g~ ~"'Q: Other adjustments and ~;.~-;~f~.;~~~~ .it~~~-i~tt~.~h .~~.h~~;~i~~.... Instructions for Form 6251 e 19 Tax-exempt interest income Form 1040, line Bb ~ 20 Other tax-exempt income } GO See pages 9 and 10 of Partner's J:: 21 Nondeductible expenses 0 Instructions for Schedule K-1 22 Distributions of money (cash and marketable securities) 5 700. (Form 1065) 2' Distributions of oronertv other than mone\ JWA For Paperwork Reduction Act Notice, see Form 1065 Instructions. No Information Required for Page 2 Schedule K-1 (Form 1065) 1999 911161 05-15-99 10290410 706230 11400 1999.08200 BOCO ASSOCIATES 11400 2 1 SC'HEDUL~ )<-;1 (Form .1065) Department of the Treasury Internal Revenue Service be innin Partner's Share of Income, Credits, Deductions, etc. For calendar year 1999 or tax year 1999 and endin Partnershi 's identi in number Partnership's name, address, and ZIP code OMB No. 1545-0099 1999 ~ 23-2373389 . Partner', idenli in number ~ 187- 3 6 7752 Partner's name, address, and ZIP code PATRICIA BOWMAN DAPP 207 PINE WOODS ROAD WELLSVILLE PA 17365 A This partner is a general partner D limited liability company member What type of entity is this partner? ~ INDIVIDUAL Is this partner a [X] domestic or a D foreign partner? Enter partner's (j)o~~~~i~~~~r (ii);:: of percentage of: Profit sharing Loss sharing Ownership of capital D limited partner OCO ASSOCIATES 3 LONG LANE ECHANICSBURG PA F Partner's share of liabilities: Nonrecourse Qualified nonrecourse 1inancing Other 17055 B C o $ $ $ o. % Tax shelter registration number .... Check here jf this partnership is a publicly traded partnership as defined in section 469(k)(2) D IRS Center where artnershi filed return: G 4.0000000% H 4.0000000% 4.0000000% PHILADELPHIA PA % % E Check Hcable boxes: 1 DfinalK-1 2 DAmendedK-l J Analvsis of oartner's canital account: (a~ Capital account at (b) Capital contributed (C~ Partner's share of lines (d) Withdrawals and (e) Capital account at end ,4, and 7, form 1065, of year (combine eginning of year during year Schedule M-2 distributions columns (a) through (d)) (a) Distributive share item (b) Amount (e) 1040 filers enter the amount in column (b) on: 1 Ordinary income (loss) from trade or business activities O. } 2 Net income (loss) from rental real estate activities 376. See page 6 of Partner's Instructions fOf8cheduleK-1 (Form 1065) 3 Net income (loss) from other rental activities 4 Portfolio income (loss): a Interest 30. Sch. B. Part I, line 1 Ui' b Ordinary dividends Sch, B. Part II, line 5 '" 0 c Royalties Sch. E, Part I, line 4 do ~ d Net short-term capital gain (loss) Sch. O.line 5. coL (f) E 0 e Net long-term capital gain (loss): (1) 28% rate gain (loss) SCh, O,line 12, coL (g) u E (2) Total for year Sch. 0, line 12, col. (f) f Other portfolio income (loss) (anach schedule) Enter on applicable lines of your return 5 Guaranteed payments to partner ) See page 6 of Partner's Instructions 6 Net sec. 1231 gain (loss) (other than casualty or then) . for Schedule K-1 (Form 1065) 7 Other income lIoss\ lanach schedule) . . Enteron licablelineof'~urreturn !:'", 8 Charitable contributions (attach schedule) Sch. A, line 15 or f6 "<= 9 Section 179 expense deduction } 'Co See pag6s 7 and 8 of Partner's ~:o= 10 Deductions related to portfolio income (attach schedule) Instructions for Schedule K-1 11 Other deductions lanach schedule) . (Form 1065) C 13 Other credits (Enter on applicable lines of your return) ~, Interest expense on investment debts form 4952, Iinel Ell! 14a 1iiCll b (1)lnvestment income included on lines 4a, 40, 4c,and 4f above 30. } See page 9 of Partner's Instructions Ill" E1ii (2)lnvestment expenses included on line 10 above. for Schedule K-1 (Form 1065) -~ .l1~ 15' Net earnings (loss) from self-employment O. SCh, SE, Section A or B 'tic b Gross farming or fishing income ~- 1 T s.. p,go 9 01 p",,"~', 'oot"oliooo ~ 0 Gross nonfarm income lor Schedule K-1 (Form 1065) C " 16a Depreciation adjustment on property placed in service after 1986 } i~~ See Partner's Instructions for ~~~ b Adjusted gain or loss ........,.... ._........ .... .............. ... _......... Schedule K-1 (Form 1065) and ~"'O: Other adjustments and tax nreference items (attach schedule\ Instructions for Form 6251 e 19 Tax-exempt interest income form 1040, line Bb i; 20 Other tax-exempt income } ,s 21 Nondeductible expenses See pages 9 and 10 of Partner's Instructions for Schedule K-1 0 Distributions of money (cash and marketable securities) (Form 1065) 22 23 Distributions of nronertv other than monev .. JWA For Paperwork Reduction Act Notice, see Form 1065 Instructions. No Information Required for Page 2 Schedule K-1 (Form 1065) 1999 10290410 706230 11400 1999.08200 BOCO ASSOCIATES 11400 3 1 911161 05-15-99 F~m Department of the Treasury Internal Revenue Service 1065 . (::;:;; (1'-:" O~Sl\"~nership < ';;01' C~dar ye<tJ998. or taxUar beginning Return of Income OMS No. 1545-0099 ,1998, and ending 1998 A Principal business activity Name of partnership D Employer Identification number B Principal product or service u" tha IRS OCO ASSOCIATES label. Olher- Number, street, and room Of suite no. (If a p.a. box, see page 100fthe instructions.) ;I~:~e 3 LONG LANE print City or town, state, and ZIP coda ~ type. 23-2373389 RENTAL E Datebusinessstarted REAL ESTATE c ~;;sb~t~~~S~f ~~t~u~~iJ~ 01 01 1986 F Tolalassets 531110 7 G Check applicable boxes: (1) (3) Change in address H Check accounting method: (1) [X] Cash (2) D Accrual (3) D Other (specify) ~ I Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year .... (4) 3 Caution: Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more information. 1 a Gross receipts or sales 1a b Less returns and allowances 1b 1c 2 Cost of goods sold (Schedule A, line 8) 2 .. 3 Gross profit. Subtract line 2 from line 1c 3 E 0 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach schedule) 4 0 .E 5 Net farm profit (loss) (attach Schedule F (Form t040)) 5 6 Net gain (loss) from Form 4797, Part Ii,line 18 6 7 Other income (loss) (attach schedule) 7 8 Total income f1ossl. Combine lines 3 throuoh 7 8 9 Salaries and wages (other than to partners) (less employment credits) 9 " 10 Guaranteed payments to partners 10 c .~ 11 Repairs and maintenance 11 E 12 8ad debts 12 ] 13 Rent 13 - ,g 14 Taxes and licenses 14 0 c 15 Interest 15 0 .............................................................11~~1.. " 16 a Depreciation (if required, attach Form 4562) 0 ~ ;; b Less depreciation reported on Schedule A and elsewhere on return 16b 16c .5 17 Depletion (Do not deduct oil and gas depletion.) 17 .. .. 18 Retirement plans, etc. 18 .!? 0 19 Employee benefit programs 19 c 0 " 0 ~ 20 Other deductions (attach schedule) 20 " .. C 21 Total deductions. Add the amounts shown in the far rinht column for lines 9 throuQh 20 21 22 OrdinarY income lIossl from trade or business activities. Subtract line 21 from line 8 22 o. Under penalties of perjury, I declare that I have examined this retum, Including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, Please correct. and complete, Deciaratlon of preparer (other than general partner or limited liability oompany member) is based on all information of which preparer has any knowledge. Sign ~ Signature of general partner or limited liability company member ~D"a Here Preparer's ~ r"a Check If J) preparer's:-ocia!~urityno. Paid signature self-employed ~D 178383454 Preparer's Fi~"",ma(~ llr..WAGGONER FRUTIGER & DAUB I EIN ~23-1583249 Use Only yours If I ZIP'''a ~17050-3649 ,alf-amployed) ~ 5006 E TRINDLE RD SUITE 200 and address MECHANICSBURG PA JWA For Paperwork Reduction Act Notice, see separate instructions. 811001 11-17-98 Form 1065 (1998) Form 1065 (19981 ,BOeO 'ASSOCIATES 23-2373389 Paoe 2 I Schedule A I Cost of Goods Sold 1 Inventory at beginning of year 1 2 Purchases less cost of items withdrawn for personal use 2 3 Cost of labor 3 4 Additional section 263A costs (attach schedule) 4 5 Other costs (attach schedule) 5 6 Total. Add lines 1 through 5 6 7 Inventory at end of year 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page t,Hne 2 8 9 a Check all methods used for valuing closing inventory: (i) 0 Cost as described in Aegulations section 1.471.3 (ii) D Lower of cost or market as described in Regulations section 1.471-4 (iii) 0 Other (specify method used and attach explanation) ~ b Check this box if there was a writedown of 'subnormal" goods as described in Regulations section 1.471-2(c) . c Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) d Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership? e Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If Y h I ~O uuu u..........u.. ~O o Yes 0 No o Yes 0 No , es "attac eXQlanatlOn. I Schedule B I Other Information Yes No 1 What type of entity is filing this return? Check the applicable box: a [X] General partnership b o Limited partnership c o Limited Iiabilify company d o Limited liability partnership e OOther~ 2 Are any partners in this partnership also partnerships? X 3 Is this partnership a partner in another partnership? . X 4 Is this partnership subject to the consolidated audit procedures of sections 6221 through 6233? If 'Ves," see Designation of Tax Matters Partner below X 5 Does this partnership meet All THREE of the following requirements? a The partnership's total receipts for the tax year were less than $250,000; b The partnership's total assets at the end of the tax year were less than $600,000; AND c Schedules K.1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. If ''Yes,' the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item J on Schedule K-l X 6 Does this partnership have any foreign partners? X 7 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? X 8 Has this partnership filed, or is it required to file, Form 8264, Application for Registration of a Tax Shelter? X 9 At any time during the calendar year 1998, did the partnership 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 the instructions for exceptions and filing requirements for Form TO F 90-22.1.) If ''Yes," enter the name of the foreign country. .... X 10 During the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If ''Yes,' the partnership may have to file Form 3520 or 926. See page 15 of the instructions X 11 Was there a distribution of property or a transfer (e.g., by sale or death) of a partnership interest during the tax year? If 'Ves," you may elect to adjust the basis of the partnership's assets under section 754 by attaching the statement described under Elections Made Bv the Partnershin .. X Designation of Tax Matters Partner Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return: Name of deSignated TMP Address of designated TMP ~ STEVEN BOWMAN ~ 2999 DICKINSON AVENUE CAMP HILL. PA 17011 Identifying numberofTMP ~ 187-36-7751 811011 11-17-98 10450130 706230 11400 2 092 BOCO ASSOCIATES 11400_1 form 1065 (1998; , - 89 Paoe 3 I Schedule KI Partners' Shares of Income Credits Deductions. etc. (al Distributive share items Ib\ Total amount 1 Ordinary income (loss) from trade or business activities (page 1, line 22) 1 O. 2 Net income (loss) from rental real estate activities (attach Form 8825) . nSE:E:1 ~ 'l't'\'l'E:~E::N"'l' ..1. 2 9 019. 3 a Gross income from other rental activities b Expenses from other rental activities (attach schedule) ............................. I 3b I c Net income (loss) from other rental activities. Subtract line 3b from line 3a 3e 4 Portfolio income (Joss): en a Interest income ................UE: nS'l'!\.'l'E:~E::N"'l'....~. 4_ 1 063. '" b Ordinary dividends 4b 0 d- e Royalty income 4e ~ E d Net short-term capital gain (loss) (attach Schedule D (form 1065)) 4d 0 0 . Net long-term capital gain (loss) (attach Schedule D (form 1065)): .E (1) 28% rate gain (loss) ~ (2) Total for year . ~ 4.12\ f Other portfolio income (loss) (attach schedule) 4f 5 Guaranteed payments to partners 6 6 Net section 123t gain (loss) (other than due to casualty or theft) (attach form 4797) 6 7 Dther income (Ioss\ lattach schedulel .. 7 '" 8 Charitable contributions (attach schedule) 8 ~ 0 9 Section 179 expense deduction (attach form 4562) 9 " u ~ 10 Deductions related to portfolio income (itemize) 10 " ~ 11 Dther deductions (attach schedule) . SEE STATEMENT 3. 11 1 225. c 12 a Low-income housing credit: (1) from partnerships to which section 42(1)(5) applies for property placed in service before 1990 12_111 (2) Other than on line 12a(1) for property placed in service before 1990 12a12\ J!l (3) from partnerships to which section 42(j)(5) applies for property placed in service after 1989 12a 131 ;; (4) Other than on line 12a(3) for property placed in service after 1989 12a14\ ~ (j b Qualified rehabilitation expenditures related to rental real estate activities (attach Form 3468) 12b c Credits (other than credits shown on lines 12a and 12b) related to rental real estate activities 12e d Credits related to other rental activities. 12d 13 Other credits. 13 , 1;) 14 a Interest expense on investment debts 14a 1ii_G.l b (1) Investment income included on lines 4a, 4b, 4c, and 4f above 14bl1l 1 063. ~~li; >~- .EE.5 (21 Investment exoenses included on line 10 above 14b121 >. 15 a Net earnings (loss) from self-employment 15a O. ..2_ :!::c.c: b Gross farming or fishing income 15b JlE~ wE c Gross nonfarm income 15e ,,~ 16 a Depreciation adjustment on property placed in service after 1986 16a 3l. ~u ..~ b Adjusted gain or loss l6b S~U) ~~E c Depletion (other than oil and gas) 16e ~~G.l d (1) Gross income from oil, gas, and geothermal properties 16dll\ 1iia.~ ~x (2) Deductions allocable to oil, gas, and geothermal properties 16d/2\ .-.. ::l.... e Other adiustments and tax nreference items (attach schedule) 16. 17 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) ~ 17e x .. d Total applicable deductions and losses (attach schedule) 17d .... ~ . Total foreign taxes (check one): ~ o Paid [j;;c~;~edq 17. 0> .ij f Reduction in taxes available for credit (attach schedule) ~ 171 0 ... a Other foreian tax information (attach schedule) 170 18 Section 59(e)(2) expenditures: a Type ~ b Amount ~ 18b 19 Tax-exempt interest income 19 ~ 20 Other tax-exempt income 20 ~ .c 21 Nondeductible expenses 21 0 22 Distributions of money (cash and marketable securities) 22 10 000. 23 Distributions of property other than money. 23 24 Other items and amounts reauired to be reoorted seoaratelv to oartners (attach schedule) . Boeo ASSOCIATES 23 23733 811021 12-01-98 10450130 706230 11400 092 3 BOCa ASSOCIATES 11400 1 Form 106511998\ ,B080 'ASSOCIATES 23-2373389 Paoe4 Analysis of Net Income fLoss} 1 Net income (loss). COmbine Schedule K,lines 1 through 7 in column (b). From the result, subtract the I sum of Schedule K, lines 8 throunh 11 14a t7e and 18b .......... ...... 1 8 857. 2 Analysis by (i) Corporate (ii) Individual (iii) Individual (iv) Partnership (v) Exempt (vi) Nominee/Other partner type: (active) (passive) organization a General partners 8 857. b Limited oartners ISchedulij L I Balance Sheets Der Books INot reouired if Question 5 on Schedule B is answered 'Yes.") Beginnina of tax vear End of tax vear Assets lal Ibl leI Idl 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 Mortgage and real estate loans 8 Other investments (attach schedule) 9a Buildings and other depreciable assets b Less accumulated depreciation lOa Depletable assets b Less accumulated depletion 11 Land (net of any amortization) 12a Intangible assets (amortizable only) b less accumulated amortization 13 Other assets (attach schedule) 14 Total assets Liabilities and Capital 15 Accounts payable 16 Mortgages, noles, bonds payable in less than 1 year 17 Other current liabilities (attach schedule) 18 All nonrecourse loans 19 Mortgages, notes, bonds payable in 1 year or more 20 Other liabilities (attach schedule) 21 Partners' capital accounts 22 TotalliabHities and capital I I Reconciliation of Income (Loss) per Books With Income (Loss) per Return SchedllleM-1 (Not required if Question 5 on Schedule B is answered 'Yes." See page 23 of the instructions.) 1 Net income (loss) per books 6 Income recorded on books this f1ear not 2 Income included on Schedule K, lines 1 through included on Schedule K, lines 1 hrough 7 (itemize): 4,6, and 7, not recorded on books this year a Tax-exempt interest $ (itemize): 3 Guaranteed payments (other than health 7 Deductions included on Schedule K,lines 1 insurance) through 11. 14a, 17e, and 18b, not charged 4 Expenses recorded on books this year not against book income this year (itemize): included on Schedule K,lines 1 through a Depreciation $ 11, 14a. 17e, and 18b (itemize): a Depreciation $ b Travel and entertainment $ 8 Add lines 6 and 7 9 Income (loss) (Analysis of Net Income (Loss), 5 Add lines 1 through 4 line 1 \. Subtract line 8 from line 5 . I . Schedule M"21 Analysis of Partners' CaDital Accounts Not renuired it Question 5 on Schedule B is answered "Yes.") 1 Balance at beginning ot year 6 Distributions: a Cash 2 Capital contributed during year b Properly 3 Net income (loss) per books 7 Other decreases (itemize): 4 Other increases (itemize): 8 Add lines 6 and 7 5 Add lines 1 throuah 4 9 Balance at end of year. Sublracl line 8 from Jine 5 811041 11-17-98 10450130 706230 11400 4 092 BOCO ASSOCIATES 11400 1 . Depreciation and Amortization Detail OFFICE SHOP - Description 01 property Asset Number 1 Date 1 d I Lf I L I Cost or 1 Basis I Accumulated -I Current year placed Metho I I e me in service IRC sec. or rate No. other basis reduction depreciation/amortization deduction 10RGANIZATION COSTS 101'01'8 Sf7 0 9 1180M I 411 956) I 956 :1 O. 200MMERCIAL BUILDING 101,01185lC::L 118.00119 I 153 023.1 I 108 813.1 7 651- 3REFINANCING COSTS 11001,921 15M 411 I ? 319.T I 2 319.1 O. 400MMERCIAL BUILDING ]01,01194ISL 139.00117 I 47 778.1 I 4 851.\ 1 225. 5REFINANCING COSTS "106101,941 160M 141 \ 1 186.\ \ 849.1 238. * TOTAL RENTAL DEPRECIATION & AMORTIZATION \ I ' 1 \ I I 205 262 J 0.1 117 788.1 9 114. LESS: SECTION 754 DEPRECIATION I I , I I I I I I I 1 225. ~ET DEPRECIATION 1 I ' 1 I I I I I I 7 889. I I , I I I I I I I I I I I T I I ] I I I I , I I I I 1 1 I I I I I T I I 1 I I \ I I \ \ I I \ \ I I I I I T I I T I I I I I 1 I 1 I I I I I I I 1 T I I T I r 1 , I 1 I I I I I I I I I 1 I I I 1 I I 1 , , 1 I I 1 1 I I I I I I I I I I I I I I ' T I \ I T I I I I I I I 1 I I I I I I I 1 I I I I I I I I I I I I I I 1 I I I I -I I I 1 -I I I 1 , , -I I I I T I I I I ' 1 1 1 I 1 I I GARAGE AND LAND MECHANICS R 1 816261 11-05-98 10450130 706230 11400 # - Current year section 179 (D) - Asset disposed 4.1 092 BOCO ASSOCIATES 11400_1 Fcrm 8825 Rental Real Estate Income and Expenses of a Partnership or an S Corporation .... See instructions on page 2. ~ Attach to Form t065 or Form 11205. OMBNo.1545-1186 Department of the Treasury Intefnal Revenue Service N=. 1998 Employer identification number BOCO ASSOCIATES 1 Show the kind and location 01 each property. See paQ8 2 tor additional properties. AOFFICE SHOP, GARAGE AND LAND MECHANICSBURG, PA 17055 23'-2373389 B c o Properties Rental Real Estate Income A B C 0 2 Gross rents 2 22 800. Rental Real Estate Expenses 3 Advertising 3 4 Auto and travel 4 5 Cleaning and maintenance 5 6 Commissions 6 7 Insurance 7 8 Legal and other professional fees 8 375. 9 Interest 9 5 493. 10 Repairs 10 11 Taxes 11 12 Utilities 12 13 Wages and salaries 13 14 Depreciation (see instructions) 14 7 651. 15 Other (list) ~ STMT....4.... 262. 15 16 Total expenses 10r each property. Add lines 3 through 15 16 13 781. 17 Total gross rents. Add gross rents from line 2, columns A through H 17 22 800. 18 Total expenses. Add total expenses from line 16, columns A through H 18 13 781. 19 Net gain (loss) from Form 4797, Part ll,line 18, from the disposition of property 1rom rental real estate activities 19 20. Net income (loss) 1rom rental real estate activities from partnerships, estates, and trusts in which this partnership or S corporation is a partner or bene1iciary (from Schedule K~1) 20. b Identify below the partnerships, estates, or trusts 1rom which net income (loss) is shown on line 20a. Attach a schedule if more space is needed: (1) Name (2) Employer identification number 21 Net income (loss) 1rom rental real estate activities. Combine Jines 17 through 20a. Enter the result here and on: . Form 1065 or 11208: Schedule K, line 2, or 21 9 019. . Form 1065-8: Part I line 4 JWA for Paperwork Reduction Act Notice, see page 2 of form. 820141 11-18-98 Form 8825 (1998) 10450130 706230 11400 092 5 BOCO ASSOCIATES 11400 1 BOCa ASSOCIATES Form 8825 (1QgS) . , 1 Show the kind and location of each property. E 23-2373389 Page 2 F G H ProDerties Rental Real Estate Income E F G H 2 Gross rents 2 Rental Real Estate Expenses 3 Advertising 3 4 Auto and travel 4 5 Cleaning and maintenance 5 6 Commissions 6 7 Insurance 7 8 Legal and other professional fees 8 9 Interest 9 10 Repairs 10 11 Taxes 11 12 Utilities 12 13 Wages and salaries 13 14 Depreciation (see instructions) 14 15 Other (list) ~ 15 16 Total expenses for each property. Add lines 3 through 15 16 820142 11-18-98 10450130 706230 11400 6 092 BOCa ASSOCIATES 11400 1 BOCO ASSOCIATES, 23-2373389 SCHEDULE K NET INCOME (LOSS) FROM RENTAL REAL ESTATE STATEMENT 1 DESCRIPTION AMOUNT OFFICE SHOP, GARAGE AND LAND MECHANICSBURG, PA 17055 TOTAL TO SCHEDULE K, LINE 2 9,019. 9,019. SCHEDULE K INTEREST INCOME STATEMENT 2 DESCRIPTION U.S. BONDS OTHER 1,063. 1,063. PNC BANK TOTAL TO SCHEDULE K, LINE 4A SCHEDULE K OTHER DEDUCTIONS STATEMENT 3 DESCRIPTION AMOUNT SECTION 754 DEPRECIATION - RENTAL REAL ESTATE 1,225. 1,225. TOTAL TO SCHEDULE K, LINE 11 OTHER RENTAL EXPENSES STATEMENT 4 PROPERTY: OFFICE SHOP, GARAGE AND LAND MECHANICSBURG, PA 17055 DESCRIPTION AMOUNT TOTAL TO RENTAL SCHEDULE, LINE 15 238. 24. 262. AMORTIZATION MISCELLANEOUS EXPENSE 10450130 706230 11400 7 092 BOCO ASSOCIATES STATEMENT(S) 1, 2, 3, 4 11400 1 BOCO ASSOCIATES, 23-2373389 GROSS RENTAL INCOME STATEMENT 5 PROPERTY, OFFICE SHOP, GARAGE AND LAND MECHANICSBURG, PA 17055 DESCRIPTION AMOUNT TOTAL TO RENTAL SCHEDULE, LINE 2 22,800. O. 22,800. GROSS RENTAL INCOME MISCELLANEOUS INCOME 10450130 706230 11400 8 092 BOCO ASSOCIATES STATEMENT(S) 5 11400 1 ALTERNATIVE MINIMUM TAX DEPRECIATION REPORT ASSET DESCRIPTION AMT AMT REGULAR AMT AMT NUMBER METHOO LIFE DEPRECIATION DEPRECIATION AOJUSTMENT 2 COMMERCIAL BUILDING SL 18.00 7 651. 7 651. o. 4 r'OMMERCIAL BUILDIN(. SL 40.00 1 225. 1 194. 31. TOTALS 8 876. 8 845. 31. MACRS AMT ~DJUSTMENT 31. 828161 '1-05-98 10450130 706230 11400 8.1 092 BOCa ASSOCIATES 11400 1 1 SCHEDULE.K-1 (Form 1065) Department of the Treasury , Internal Revenue Service be innin Partner's Share of Income, Credits, Deductions, etc. For calendar year 1998 or tax year 1998 and endin Partnershi 's identi in number Partnership's name, address, and ZIP code OMS No. 1545-0099 Partn.r', id.nti in number ~ 187 -16 - 6525 Partner's name, address, and ZIP code 1998 ~ 23-2373389 ZORA G BOWMAN 76 GREENS PRING DRIVE MECHANICSBURG PA 17055 A This partner is a [X] general partner D limited liability company member What type of entity is this partner? ~ INDIVIDUAL Is this partner a [X] domestic or a D foreign partner? Enter partner's ~}~~=i~~~~~e (ii);;: 01 percentage of: Profit sharing Loss sharing Ownership of capital D limited partner aco ASSOCIATES 3 LONG LANE CHANICSBURG PA 17055 F Partner's share of liabilities: Nonrecourse $ Qualified nonrecourse financing $ Other $ o. 8 C D o. IRS Center where artnershi tiled return: 69% 69% 69% PHILADELPHIA G 61% H 61% 61% PA Tax shelter registration number .... Check here if this partnership is a publicly traded partnership as defined in section 469(k)(2) D E Check a Iicable boxes: 1 D Final K-1 2 D Amended K-l J Analvsis of nartner's canital account: (at Capital account at (b) Capital contributed (Cd Partner's share of lines (d) Withdrawals and (e) Capital account at end ,4, and 7, Form 1065, of year (combine eginning of year during year Schedule M-2 distributions columns (a) through (d)) (a) Distributive share item (b) Amount (c) 1040 Iilers enter the amount in column (b) on: 1 Ordinary income (Joss) from trade or business activities O. } 2 Net income (loss) from rental real estate activities 6 219. See page 6 of Partner's Instructions for Schedule K-1 (Form 1065) 3 Net income (loss) from other rental activities 4 Pmtfolio income (loss): a Interest 733. Sch. 8, Part I. line 1 '" b Ordinary dividends Sch. 8, Part II, line 5 0 0 c Royalties Sch. E, Part I, line 4 do " d Net short-term capital gain (loss) Sch. O. line 5. col. (f) g e Net long-term capital gain (loss): (1) 28% rate gain (loss) Sch. D,line 12. col. (g) 0 E (2) Total for year Sch_ 0, line 12, Gal. (f) I Other portlolio income (loss) (attach schedule) Enter on applicable Iinas of your return 5 Guaranteed payments to partner } See page 6 of Partner's Instructions 6 Net sec. 1231 gain (loss) (other than casualty ortheft) . tor Schedule K-1 {Form 1065) 7 Other income <loss\ (a\lach schedule) ." Enter on "nnticable line of vour return 60 8 Charitable contributions (attach schedule) Sch. A, line 15 or 16 ~o 9 Section 179 expense deduction } "00 Seepages? and 6 of Partner's ~~ 10 Deductions related to portfolio income (attach schedule) InstructionsforScheduleK-1 11 Other deductions (attach schedule) .. .BEE..BTATEMENT 1 225. (Form 1065) " 13 Other credits (Enter on applicable lines of your retur!'1) " . Interest expense on investment debts Form 4952, line 1 E~ 14 , 'in(/) b(1)lnvestment income included on lines 4a, 4b, 4c. aml4f above 733. } See page 9 of Partner's Instructions ~.. 0- (2)lnvestment expenses included on line 10 above. fOl'ScheduleK-1 (Form 1065) _0 ." 0~ 15a Net earnings (loss) from self-employment O. Sch. SE, Section A or B -" --- "00 b Gross farming or fishing income ,,- I T s% pag" of P"'c~', Ic"ructio", ~ <.> c Gross nonfarm income forScheduleK-1 (Form 1065) ~~~ 16a Depreciation adjustment on property placed in service after 1986 31. } SeeParlner'slnstructionsfor ~-g~ b Adjusted gain or loss Schedule K-1 (Form 1065) and :;;''''d: Other adiustments and tax creference items (attach schedule\ Instructions lor Form 6251 < . 19 Tax-exempt interest income Form 1040. line 8b a; 20 Other tax-exempt income } .s: 21 Nondeductible expenses See pages 9 and 10 of Partner's 5 Instructions for Schedule K-1 22 Distributions of money (cash and marketable securities) 10 000. (Form,065) 2' Distributions of nronertv other than monev JWA For Paperwork Reduction Act Notice, see Form 1065 Instructions. No Information Required for Page 2 Schedule K-1 (Form 1065) 1998 811161 11-18-96 10450130 706230 11400 092 BOCa ASSOCIATES 11400 1 1 BOCO ASSOCIATES 23-2373389 SCHEDULE K-1 OTHER DEDUCTIONS DESCRIPTION AMOUNT PARTNER INSTRUCTIONS SECTION 754 DEPRECIATION - RENTAL REAL ESTATE 1,225. SEE PARTNER INSTRUCTIONS FOR SCH K-1 1,225. TOTAL TO SCHEDULE K-1, LINE 11 SCHEDULE K-1 COLUMN C RECONCILIATION DESCRIPTION AMOUNT RENTAL REAL ESTATE INCOME (LOSS) INTEREST INCOME OTHER DEDUCTIONS 6,219. 733. <1,225.> TOTAL TO SCHEDULE K-1, ITEM J, COLUMN C 5,727. 10450130 706230 11400 10 092 BOCO ASSOCIATES Partner Number 1 11400_1 . 2 SCHEDULE,K-1 . (Form 1065) Department of the Treasury < Internal Rever1ue$ervice be innin Partner's Share of Income, Credits, Deductions, etc. For calendar year 1998 or tax year 1998 and endin Partnershi 's identi in number Partnership's name, address, and ZIP code OMS No. 1545-0099 Partner's idenli In number ~ 187 36 7751 Partner's name, address, and ZIP code 1998 ~ 23 2373389 STEVEN BOWMAN 2999 DICKINSON AVENUE CAMP HILL PA 17011 A This partner is a general partner [] limited liability company member Whattypeofentityislhisparlner? ~ INDIVIDUAL Is this partner a 00 domestic or a D foreign partner? Enter partner's ~}:~:r~.I~~~~e (ii);:: of percentage at Profit sharing Loss sharing Ownership of capital D limiled partner OCO ASSOCIATES 3 LONG LANE ECHANICSBURG PA 17055 F Partner's share of liabilities: Nonrecourse $ Qualified nonrecourse financing $ Other $ o. S C o o. IRS Center where partnershi filed return: 31% 31% 31% PHILADELPHIA G 35% H 35% 35% PA Tax shelter registration number .... Check here if this partnership is a publicly traded partnership as defined in seclion 469(k)(2) D E Check a Iicable boxes: 1 D Final K-1 2 D AmendedK-l J Analvsis of nartner's canital account (ah Capit~1 account at (b) Capital contributed (CJ Partner's share ot lines (d) Withdrawals and (e) Cap~al account al end ,4, and 7, Form t065, afyear (combine eglnnmg of year during year Schedule M-2 distributions columns (a) Ihrough (d)) (a) Distributive share item (b) Amount (e) 1040 filers enter the amount in column (b) on: 1 Ordinary income (loss) from trade or business activities O. } 2 Net income (loss) from rental real estate activities 2 798. See page 6 of Partner's Instructions for ScheduleK.' (Form 1065) 3 Net income (loss) from other rental activities 4 Portfolio income (loss): a Interest 330. Sch. 8, Part I,line t i b Ordinary dividends Sch. S, Part 1I,Iine 5 0 e Royalties Sch. E, Part I, line 4 e. ~ d Net shorHerm capital gain (loss) Sch. D, line 5, col. (f) 0 e Net long-term capilal gain (loss): (1) 28% rate gain (loss) Sch. D, line 12, col. (g) 0 E (2) Total for year Sch. D, line 12, col. (1) f Olher portfolio income (loss) (attach schedule) Enter on applicable lines of your return 5 Guaranteed payments to partner } See page 6 of Partner's Instructions 6 Net sec. 1231 gain (loss) (other Ihan casualty or theft) ... forScheduleK.1 (Form 1065) 1 Other income (joss\ lattach scheduie\ ................... Enteron "nnlicablelineofvnurreturn b", 8 Charitable contributions (attach schedule) Sch. A,line 15 or 16 ~c 9 Section 179 expense deduction } "00 See pages 7 and 8 of Partner's ...- 10 Deductions related to portfolio income (attach schedule) 0- Instructions for Schedule K.' 11 Other deductions lattach schedule) .. (Form 1065) E 13 Other credits (Enter on applicable lines of yoUf retlJrn) ... 14a Interest expense on investment debts Form 4952,Iine1 E"! 'iil'" b (1 )lnvestment income included on lines 4a, 40, 4c, and 4f above 330. } See page 9 of Partner's Instructions ~.. c- (2)lnvestment expenses included on line 10 above. for Schedule K-1 (Form 1065) -'" -.. "'- 15 a Net earnings (loss) from self-employment o . Sch. SE, Seclion A or 8 -.. i5i: b Gross farming or fishing income ..- r s~ "~gOO of p","~', '00"""'00' - 0 Gross nonfarm income tor Schedule K.1 (Form 1065) C ~~g 16a Depreciation adjustment on property placed in service after 1986 } See Partner's Instructions for e...... ~ b Adjusted gain or loss Schedule K.1 {Form 1065}and i~~ Olher adiuslments and t~x~;ei~;~~c~il~~~(atl"CI1~I1~duie;'" Instructions for Form 6Z51 e 19 Tax-exempt interest income Form 1040,line 8b l; 20 Otller tax-exempt income } '" 21 Nondeductible expenses See pages 9 and 10 of Partner's 15 Instructions for Schedufe K'1 22 mstributions of money (cash and marketable securities) (Form 1065) .. Distributions of nronertv other than monev JWA For Paperwork Reduction Act Notice, see Form 1065 Instructions. No Information Required for Page 2 Schedule K-l (Form 1065) 1998 10450130 706230 11400 092 BOCO ASSOCIATES 11400 2 1 811161 11.18-98 BOCO ASSOCIATES- 23-2373389 SCHEDULE K-1 COLUMN C RECONCILIATION DESCRIPTION AMOUNT TOTAL TO SCHEDULE K-1, ITEM J, COLUMN C 2,798. 330. 3,128. RENTAL REAL ESTATE INCOME (LOSS) INTEREST INCOME 10450130 706230 11400 12 092 BOCO ASSOCIATES Partner Number 2 11400_1 SCHEDUL~,K-1 . (Form 1065) Department of the Treasury Internal Revenue$ervice be innin Partner's Share of Income, Credits, Deductions, etc. For calendar year 1998 or tax year 1998 and endin Partnershi 's identi in number Partnership's name, address, and ZIP code OMB No. 1545-0099 Partner". identi in number ~ 187 - 3 6 - 7 7 5 2 Partner's name, address, and ZIP code 1998 ~ 23-2373389 PATRICIA BOWMAN DAPP 207 PINE WOODS ROAD WELLSVILLE PA 17365 A This partner is a 00 general partner D limited partner D limited liability company member B What type of entity is this partner? ~ INDIVIDUAL C Is this partner a [X] domestic or a U foreign partner? o Enter partner's (i)~~:~i~~:ro~e (ii)~; of percentage of: Profit sharing % loss sharing % Ownership of capital % E IRSCenterwhere artnershi filed return; PHILADELPHIA OCO ASSOCIATES 3 LONG LANE ECHANICSBURG PA 17055 F Partner's share of liabilities: Nonrecourse $ Qualified nonrecourse financing $ Other $ o. o. G 4% H 4% 4% Tax shelter registration number ..... Check here if this partnership is a publicly traded partnership as defined in section 469(k}(2) D PA Check a Iicable boxes: 1 D Final K-1 2 D AmendedK-1 J Analvsis of nartner's canital acr.ount: (at Capital account at (b) Capital contributed {CJ Partner's share 01 tines (d) Withdrawals and (e) Cap"tal account at end , 4, and 7, Form 1065, of year {combine eginning of year during year Schedule M-2 distributions columns (a) through (d)) (a) Distributive share item (b) Amount (c) 1040 filers enter fhe amount in column (b) on: 1 Ordinary income (loss) from trade or business activities O. } 2 Net income (loss) from rental real estate activities 2. Seepage 6 of Partner's Instructions lorScl1eduleK-1 (Form 1065) 3 Net income (loss) from other rental activities 4 PortfoliO income (loss): a Interest Sch. B, Part I, line 1 0; b Ordinary dividends Sch. B, Part II, line 5 0 0 c Royalties Sch. E, Part I, line 4 do ~ d Net short-term capital gain (loss) Sch. D, line 5, col. (f) 0 e Net long-term capital gain (loss): (1) 28% rate gain (loss) Sch. D,line 12, col. (g) ~ (2) Total for year Sch. D,lin. 12, col. (I) I Other portlolio income (loss) (attach schedule) Enter on applicable lines of your return 5 Guaranteed payments to partner ) See page 6 of Partner's Instruotions 6 Net sec. 1231 gain (loss) (other than casualty or theft) , lor Schedule K-1 (Form 1065) 7 Other income <Iossllattach schedule) .. Enteron annlicable line 01 V<"lur return , 8 Charitable contributions (attach schedule) Sch. A,line 15 or 16 <'>0 9 Section 179 expense deduction } ~<: "00 See pages 7 and 8 of Partner's ~.. 10 Deductions related to portfolio income (attach schedule) Instructions for Schedule K-1 11 Other deductions 'attach schedule) " (Form 1065) ~ 13 Other credits (Enter on applicable lifles 01 your retum) <: ~ . Interest expense on investment debts Ell! 14a Form 4952, line 1 1;;"' b(t)lnvestment income included on lines 4a, 4b, 4c. and 4t above } See page 9 of Partner's Instructions ~olS .s0 (2)lnvestment expenses included on line 10 above. for Scl1edule K-1 (Form 1065) -~ 0~ 15 a Net earnings (loss) from self-employment O. Sch. SE, Section A or B ~~ ._~ "0<: b Gross farming or fishing income ~- ~ See page 9 of Partner's Instructions ~ (.) c Gross nonfarm income for Scl1edule K-1 (Form 1065) I~I 16a Depreciation adjustment on property placed in service after 1986 } See Partner's Instructions for b Adjusted gain or loss ScheduleK-1 (Form 1065)and 'C"'';: Other adiustments and tax ~r~i~;e~C~it~~;(an;ch~h~d~I~; Instructions for Form 6251 < e 19 Tax-exempt interest income Form 1040,IIne Bb i 20 Other tax-exempt income } <: 21 Nondeductible expenses See pages 9 and 10 of Partner's ~ Instructions for Schedule K-1 0 Distributions of money (cash and marketable securities) (Form 1065) 22 .. Distributions of nronertv other than money ... JWA For Paperwork Reduction Act Notice, see Form 1065 Instructions. No Inlormation Required for Page 2 Schedule K-l (Form 1065) 1998 811161 11-18-98 10450130 706230 11400 092 BOCO ASSOCIATES 11400 3 1 BOCO ASSOCIATES, 23-2373389 SCHEDULE K-1 COLUMN C RECONCILIATION DESCRIPTION AMOUNT RENTAL REAL ESTATE INCOME (LOSS) TOTAL TO SCHEDULE K-1, ITEM J, COLUMN C 2. 2. 10450130 706230 11400 14 092 BOCO ASSOCIATES Partner Number 3 11400_1 .. Form Department of the Treasury Intemal Revenue Service ,1065 ;:I~' ((j:"'~\~-ls)pat. nership Return of Income II . 1'- 1 \ \E9I"'9a~ \~ar~y,~ 19~7, or tax y . beginning , 1997, and ending \::--- I~,....-' ~ OMS No. '545-0099 ,19 1997 B Principal product or service OCO ASSOCIATES 23-2373389 A PrIncipal busIness activity Name of partnership D ~~~~oJer identification RENTAL Number, street, and room or suite no. (11 a P.O. box, see page 10 of the Instructions.) E Date business started pl~'9 3 LONG LANE pnnt REAL ESTATE City or town, stale, and ZIP code C Business code number 6 51 PAl 7 0 G Check applicable boxes: (1) Final return (3) Change in address H Check accounting method: (1) [X] Cash (2) D Accrual (3) D Other (specify) ~ I Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year .... 01 01 1986 F TOlal assets (4) 2 Caution: Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more information. 1 a Gross receipts or sales .......................................... .............. la b Less returns and allowances lb lc 2 Cost of goods sold (Schedule A, line 8) ............................................................. 2 G 3 Gross profit Subtract line 2 from line 1c 3 E .................. ..................... ............. 0 4 Ordinary Income (loss) from other partnerships, estates, and trusts (attach schedule) 4 0 '" .5 5 Net farm profit (loss) (attach Schedule F (Form 1040)) 5 ............................ 6 Net gain (loss) from Form 4797, Part 1I,line 18 6 7 Other income (loss) (attach schedule) .............. 7 8 Total income Iloss'. Combine lines 3 throunh 7 ......... ......... 8 9 Salaries and wages (other than to partners) (less employment credits) 9 " 10 Guaranteed payments to partners 10 c: ..... 0 11 Repairs and maintenance 11 '" ...... ................................................. ........................... .!!! ~ 12 Bad debts ....................................................................... .................... ............ 12 - 13 Rent .... ................................................................................................ 13 .2 14 Taxes and licenses 14 0 ..................................... ........ ............................................. .......... c: 15 Interest 15 0 ........................................ ............................ ......... .."............i;~~i .... .......... :g 16 a Depreciation (if required, attach Form 4562) ..... ............. ......... ...... ~ 116bl Jo b Less depreciation reported on Schedule A and elsewhere on return 16c 0 ................. ........ ,E 17 Depletion (Do not deduct oHand oas depletion,) 17 G ................................................................. ....................... G 18 Retirement plans, etc. 18 .!!!. ................. .......................... ................ 0 19 Employee benefit programs 19 c: ..................... .............................................................. ...... 0 '" 0 ~ 20 Other deductions (attach schedule) 20 'C ................................. .................... ....... .............................,. G 0 21 Total deductions. Add the amounls shown in the far rinht column for lines 9 throuoh 20 21 22 Ordinan, income f1oss\ from trade or business activities. Subtract line 21 from line 8 22 O. Under penalties of perjury, I declare that I have examined this relum, including accompanying SChedules and statements. and to the best of my Knowledge and belief, it is true, Please correct, and complete. DeclaratIon of preparer (other than general partner or limited liability company member) Is based on air Information of which preparer has any knowledge. Slon ~ ~Date Here Signature of general partner or limited liability company member Preparer's ~ -[Date Check if 11 Preparer' s ~ociai s~curity no. Paid signature self-employed ~D 178383454 Preparer's Fi'm'.n~'(o~ WAGGONER FRUTIGER & DAUB I EIN ~23 1583249 Use Only yours!f I ~ I ZIP",d, ~17050 ..1I"mplo,,"d) 5006 E TRINDLE RD SUITE 200 3649 and address MECHANICS BURG PA JWA For Paperwork Reduction Act Notice, see separate instructions. Form 1065 (1997) 711001 11-25-97 '( tl Form 1065119971 BOCa ASSOCIATES 23-2373389 Pane 2 I SChedLileAI Cost of Goods Sold 1 Inventory at beginning of year ... -.-..-............. ................................... 1 2 Purchases less cost of items withdrawn for personal use ... ..................................................... ............ 2 3 Cost of labor .... ....................... .. ............................. 3 4 Additionai section 263A costs (attach schedule) .. ............................. ... ........ 4 5 Other costs (attach schedule) 5 6 Total. Add lines 1 through 5 ........... ............... ........... ................. ...... .... 6 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 9 a Check all methods used for valuing closing inventory: (i) 0 Cost as described in Regulations section 1.471-3 (ii) 0 Lower of cost or market as described in Regulations section 1.471-4 (iii) 0 Other (specify method used and attach explanation) ~ b Check this box if there was a writedown of 'subnormal" goods as described in Regulations section 1.471-2(c) c Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Fonn 970) d 00 the rules of section 263A (for property produced or acquired for resale) apply to the partnership? e Was there any change in determining quantities, cost, or valuations between opening and closing inventory? ~O ..............~O OVes ONo o Ves 0 No If "Yes" attach exnlanation. I ScheduleB I Other Information v.. No 1 What type of entity is filing this return? Check the applicable box: I a [XJ General partnership b o Limited partnership c D Limited liability company d D Other ~ 2 Are any partners in this partnership also partnerships? ............................ .......................................................... X 3 Is this partnership a partner in another partnership? ................................... ........ .................. ....... ................................ X 4 Is this partnership subject to the consolidated audit procedures of sections 6221 through 6233? If "Yes: see Designation of Tax Matters Partner below ............. ............................................................. X 5 Does this partnership meet All THREE of the following requirements? . The partnership's total receipts for the tax year were iess than $250,000; b The partnership's total assets at the end of the tax year were less than $600,000; AND c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. if "Yes," the partnership is not required to complete Schedules L, M-l, and M-2; Item F on page 1 of Form 1065; or Item J on Schedule K-l ................... ............................... X 6 Does this partnership have any foreign partners? ...................... ......... ........... ..................... X 7 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? .. .............. ..................... ..................... .... ........... X 8 Has this partnership filed, or is ~ required to file, Form 8264, Application for Registration of a Tax Shejter? ... .................. ..... X 9 At any time during the calendar year 1997, did the partnership 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 the instructions for exceptions and tiling requirements for Form TO F 90-22.1.) If "Yes,. enter the name of the foreign country. ~ X 10 During the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes,' the partnership may have to tile Form 3520 or 926. See page 14 ofthe instructions ............ X 11 Was there a distribution of property or a transfer (e.g., by sale or death) of a partnership interest during the tax year? If "Yes," you may elect to adjust the basis of the partnership's assets under section 754 by attaching the statement described under Elections Made Bv the Partnershin . X Designation of Tax Matters Partner Enter below the generai partner designated as the tax matters partner (TMP) for the tax year of this return: Name of designated TMP Address of designated TMP ~ STEVEN BOWMAN ~ 2999 DICKINSON AVENUE CAMP HILL. PA 17011 Identifying numberofTMP ~ 187-36-7751 7110'1 03-12-88 10460130 706230 11400 092 2 BOCa ASSOCIATES 11400_1 Form 1065 r1997'1 BOCO 'ASSOCIATES I Schedule K-r Partners' Shares of Income Credits Deductions etc. 'a\ Distributive share items 1 Ordinary income (loss) from trade or business activities (page l,line 22) 2 Net income (loss) from rental real estate activities (attach Form 8825) .....S:E::E:....3S,.TIAT:E:~:E:NT ...1 3 a Gross income from other rental activities ... ......... I b Expenses from other rental activities (attach schedule).... ....::....::.. I 3b I c Net income (loss) from other rental activities. Subtract line 3b from line 3a .................................... 4 Portfolio income (loss): a Interest income . .................... ...................8:E::E: ..STAT:E:~:E:N.'r.....~ ....... b Dividend income ... ........................ c Royaltyincome ........................................... ....... d Net short-term capital gain (loss) (attach Schedule 0 (Form 1065)) e Net long-term capital gain (loss) (attach Schedule 0 (Form 1065)): (1) 28% rate gain (Ioss)~ (2) Total for year .................................... ~ f Other portlolio income (loss) (attach schedule) 5 Guaranteed payments to partners ......................... .................... 6 Net section 1231 gain (loss) (other than due to casually or theft) (attach Form 4797): , 28% rate gain (loss) ~ b Total for year. 7 Other income 'loss' I~ttach schedulel .. B Charitable contributions (attach schedule) 9 Section 179 expense deduction (attach Form 4562) 10 Deductions related to portfolio income (itemize) ,1, I.' .. 11 Other deductions attach schedule .................. .. ...........................8EE...8TATEMENT ..3... 12 a Low-income housing credit: (1) From partnerships to which section 42(j)(5) applies for properly placed in service before 1990 (2) Other than on line 12a(l) for property placed in service before 1990 ........ ...... ........ (3) From partnerships to which section 42(j)(5) applies for property placed in service after 1989 (4) Other than on line 12a(3) for property placed in service after 1989 ............................. .......... ... ....... b Qualified rehabilitation expenditures related to rental real estate activities (attach Form 3468) c Credits (other than credits shown on lines 12a and 12b) related to rental real estate activities d Credits related to other rental activities .. .. .. ............... ............................... 13 Other credits. ~ 't;j 14a Interest expense on investment debts .. ................................... ....... ,,~~ ~~.s b (1) Investment income included on lines 4a, 4b, 4c, and 4f above ... l:E.5 ;2~ lnvestmentevnenses included on line 10 above ................. 15, Net earnings (loss) tram self-employment ..... ..... ............. ........ b Gross farming or fishing income ....... ........ ...... ................... ......... .... .................................... c Gross nonfarm income ................. 16 a 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, and geothermal properties (2) Deductions allocable to oil, gas, and geothermal properties .. ......... .... . ...... ................... ........ ....... e Other ad'ustments and tax nreference items lattach schedule! . 17 a Type of income ... b Foreign country or U.S. possession ... c Total gross income from sources outside the United States (attach schedule) . ...................................... d Total applicable deductions and losses (attach schedule) .... .......... .... ..... .... ... ......... ..... ......... ...... e Total foreign taxes (check one): ~ D Paid D Accrued f Reduction in taxes available for credit (attach schedule) n Other foreinn tax Information 'attach schedule' 18 Section 59(e)(2) expenditures:, Type ~ 19 Tax.exempt interest income .................................. 20 Other tax-exempt income ......................... ................................. ........................ ......_.. 21 Nondeductible expenses ..................... ....................... 22 Distributions of money (cash and marketable securities) 23 Distributions of property other than money 24 Other items and amounts renuired to be ren~rt~'d .~~~.~~~t~i~.t~.~~rt~~~~. ~~tt~~h' ~~h~d~I~~'" >. o ,.!. 'Q.t: ],~~ 711021 03-12-Q8 10460130 " " o =- . E o Q .5 " ~ o 1i :> "tl ~ " ~ '6 ~ U "tl~ ~Q m~ E~lI) cP-t;E E_. 't;jc..:: :>~ '-m ::i.... " . ~ m .... ~ '" 'a; - o ... bAmount~ - . .<: is 706230 3 BOCO ASSOCIATES 11400 092 1 2 3c 4, 4b 4c " 4e12\ 4f 5 ~ 6b 7 B 9 10 11 12,11\ 12"2\ 12a '3' 12,r4' 12b 120 12d 13 14a 14bll1 14b12\ 15a 15b 150 16a 16b 16c 16dll1 16d12\ 16e 170 17d 17e 171 17" 1Bb 19 20 21 22 23 23 2373389 Pane 3 rb' Tot,l amount o . 7 778. 1 080. 1 225. 1 080. o. 31. 11400_1 Form 1065 {19971 IilO~O ASSOCIATES 23-2373389 Paoe4 Analvsis of Net Income (Loss) 1 Net income (loss); Combine Schedule K,lines 1 through 7 in column (b). From the result, subtract the I sumofScheduleK,Iines8throunh1114a 17e and18b ........ ........ 1 7 633. 2 Analysis by (i) Corporate (ii) Individual (iii) Individual (iv) Partnership (v) Exempt (vi) NomineelOther partner type: (active) (passive) organization a General partners 7 633. b Limited oartners I Schedule LI Balance Sheets er Books (Not reouired ifOuestion 5 on Schedule B is answered "Yes.') Beainnina of tax year End of tax vear Assets lal Ibl leI fd) 1 Cash ................. 2a Trade notes and accounts receivable ,i ..'.,..... ,.,.., ......... b Less allowance for bad debts ......... 3 Inventories ,. ...... ................... 4 U.S. government obligations 5 Tax-exempt securities 6 Other current assets (attach schedule) 7 Mortgage and real estate loans 8 Other investments (attach schedule) 9a Buildings and other depreciable assets b Less accumulated depreciation 10a Depletable assets ." ... ............ b Less accumulated depletion ............. 11 Land (net of any amortization) 12a Intangible assets (amortizable only) b Less accumulated amortization 13 Other assets (attach schedule) 14 Total assets Liabilities and Capital >> 16 Accounts payable ..... ..... 16 Mortgages, notes, bonds payable in less than 1 year < 17 Other current liabilities (attach schedule) 18 All nonrecourse loans 19 Mortgages, notes, bonds payable In 1 year or more 20 Other liabilities (attach schedule) 21 Partners' capital accounts 22 Total liabilities and caoital ... ..... IScheduleM-1...1 ~~~~~i~i~ii~~~~~iO~~ ~~~~~~e ~~~~!:'r~~ ~~.?S~~ :~t~31~~~~s~u~~~n~~) per Return 1 Net income (loss) per books .... ................... 6 Income recorded on books this Yiear not 2 Income included on Schedule K, lines 1 through included on Schedule K, lines 1 hrough 7 (itemize): 4,6, and 7, not recorded on books this year a Tax-exempt interest $ (itemize): 3 Guaranteed payments (other than health 7 Deductions included on Schedule K, lines 1 insurance) ... . through 11, 14a, 17e, and 18b, not charged 4 Expenses recorded on books this year not against book income this year (itemize): included on Schedule K, lines 1 through a Depreciation $ 11, 14a, 17e, and l8b (itemize): a Depreciation $ b Travel and entertainment $ 8 Add lines 6 and 7 ................................. 9 Income (loss) (Analysis of Net Income (Loss), 5 Add lines 1 throunh 4 line It. Subtract iine 8 from line 5 . I Schedule M-21 Analysis of Partners' Capital Accounts Not reouired if Question 5 on Schedule B is answered 'Yes."\ 1 Balance at beginning of year 6 Distributions: a Cash 2 Capital contributed during year b Property 3 Net income (loss) per books 7 Other decreases (itemize): 4 Other increases (itemize): 8 Add lines 6 and 7 5 Add lines 1 throunh 4 9 Balance at end of year. Subtract IineSfrom lineS 711041 03-12-98 10460130 706230 11400 092 4 BOCO ASSOCIATES 11400 1 . . Depreciation arid Amortization Detail OFFICE SHOP GARAGE AND LAND MECHANICS R- 1 Description of property Asset Number I Date I I Lf I L I Cost or I Basis T Accumulated 1 Current year placed Methodl J e me in service IRC sec. or rate No. other basis reduction depreciation/amortizati on deduction 10RGANIZATION COSTS 101101,851709 1180M I 411 956.1 T 956.1 O. 2~OMMERCIAL BUILDING 101.01,85ISL 118.00119 I 153 023.1 I 101 162.1 7 651. 3REFINANCING COSTS ..110,01,921 15M 411 1 2 319.1 T 2 31q .I O. 4COMMERCIAL BUILDING 101,01'94ISL 139,00117 I 47 778.1 I 3 626.1 1 225. 5REFINANCING COSTS 106,01,941 160M 141 1 1 186.1 T 612.1 237. * TOTAL RENTAL DEPRECIATION & AMORTIZATION I , , I 1 I I 205 262,1 0.1 108 675.1 9 113. LESS: SECTION 754 DEPRECIATION ..1 , , I I I I I T I 1 225. NET DEPRECIATION I , , I I I 1 I I I 7 888. I I I I I I r I I , , I I I 1 1 I 1 .1 , , I I I I 1 I I <I , , I I I I I T I I , , I 1 I 1 I I I I , , I I I I I I I 1 , , I I I I I T I I , , I I I I I 1 I I . , 1 I I I I T 1 I , , I I I I I 1 I I , , I I I I 1 I I .1 , , I I I I I I I I , , I I I I I I I I ' , I I 1 I I I I I , , I I I I I I I I , , I I I I 1 I I I , , I I I I I I I I , , I I 1 I I r I I , ' I I I I I I I 716261 10-07-97 10460130 706230 11400 # - Current year section 179 (0) . Asset disposed 4.1 092 BOCO ASSOCIATES 11400_1 Fo<m 8825 Rental Real Estate Income and Expenses of a Partnership or an S Corporation ..... See instructions on page 2. ~ Attach to Form 1065 or Form 1120S. OMS No. 1545-1186 Department of the Treasury Internal Revenue Service Nom. 1997 Ernployer Identification number BOCO ASSOCIATES 1 Show the kind and location of each prooerty. See Dace 2 for additional prooerties. AOFFICE SHOP. GARAGE AND LAND MECHANICSBURG. PA 17055 23'-2373389 B c D Properties Rental Real Estate Income A B C D 2 Gross rents ............ 2 22 824. Rental Real Estate Expenses S Advertising ......... ... ....... 3 4 Auto and travel 4 5 Cleaning and maintenance 5 6 Commissions ......... 6 7 Insurance .......... 7 8 Legal and other professional fees 8 375. 9 Interest 9 6 783. 10 Repairs .... 10 11 Taxes 11 12 Utilities ............... 12 13 Wages and salaries 13 14 Depreciation (see instructions) 14 7 651. 15 Other (list) ~ STWl'..A.... 237. .... ....... .... .... ...... ......... 15 16 Total expenses for each property. Add lines 3 through 15 16 15 046. 17 Total gross rents. Add gross rents from line 2, columns A through H ... ................... ....... ................ ..... 17 22 824. 18 Total expenses. Add total expenses from line 16, columns A through H ................................................ 18 15 046. 19 Net gain (loss) from Form 4797, Part II, line 18, from the disposition of properly from rental real estate activities ............................................ 19 20. Net income (loss) from rental real estate activities from partnerships, estates, and trusts in which this partnership or S corporation is a partner or beneficiary (from Schedule K-l) 20a b Identify below the partnerships, estates, or trusts from which net income (loss) is shown on line 20a. Attach a schedule if more space is needed: (1) Name (2) Employer identification number 21 Net income (loss) from rental real estate activities. Combine lines 17 through 20a. Enter result here and on Schedule Kline 2 21 7 778. JWA For Paperwork Reduction Act Notice, see page 2 ofform. Form 8825 (1997) 720141 10.27.97 10460130 706230 11400 092 5 BOCO ASSOCIATES 11400 1 BOCa ASSOCIATES Form BB25 (1997) . . 1 ShOlN the kind and location of each orooerty. E . 23-2373389 Page 2 F G H Pror1erties Rental Real Estate Income E F G H 2 Gross rents 2 Rental Real Estate Expenses 3 Advertising 3 4 Auto and travel 4 5 Cleaning and maintenance 5 6 Commissions 6 7 Insurance 7 8 Legal and other professional fees 8 9 Interest ................... 9 10 Repairs .......... 10 11 Taxes ...... 11 12 Utilities ....................................... 12 13 Wages and salaries ...... ................. 13 14 Depreciation (see instructions) 14 15 Other (list) ~ 15 16 Total expenses for each property. Add lines 3 throuoh 15 16 720142 10-27-97 10460130 706230 11400 092 6 BOCa ASSOCIATES 11400 1 BOCO ASSOCIATES 23-2373389 SCHEDULE K NET INCOME (LOSS) FROM RENTAL REAL ESTATE STATEMENT 1 DESCRIPTION AMOUNT OFFICE SHOP, GARAGE AND LAND MECHANI CS BURG , PA 17055 TOTAL TO SCHEDULE K, LINE 2 7,778. 7,778. SCHEDULE K INTEREST INCOME STATEMENT 2 DESCRIPTION U.S. BONDS OTHER PNC BANK 1,080. 1,080. TOTAL TO SCHEDULE K, LINE 4A SCHEDULE K OTHER DEDUCTIONS STATEMENT 3 DESCRIPTION AMOUNT SECTION 754 DEPRECIATION - RENTAL REAL ESTATE 1,225. TOTAL TO SCHEDULE K, LINE 11 1,225. OTHER RENTAL EXPENSES STATEMENT 4 PROPERTY: OFFICE SHOP, GARAGE AND LAND MECHANICSBURG, PA 17055 DESCRIPTION AMOUNT AMORTIZATION TOTAL TO RENTAL SCHEDULE, LINE 15 237. 237. 10460130 706230 11400 7 092 BOCO ASSOCIATES STATEMENT(S) 1, 2, 3, 4 11400 1 BOCO ASSOCIATES 23-2373389 GROSS RENTAL INCOME 5 STATEMENT PROPERTY: OFFICE SHOP, GARAGE AND LAND MECHANICSBURG, PA 17055 DESCRIPTION GROSS RENTAL INCOME MISCELLANEOUS INCOME TOTAL TO RENTAL SCHEDULE, LINE 2 10460130 706230 11400 8 092 BOCO ASSOCIATES AMOUNT 22,800. 24. 22,824. STATEMENT(S) 5 11400 1 ALTERNATIVE MINIMUM TAX DEPRECIATION REPORT ASSET DESCRIPTION AMT AMT REGULAR AMT AMT NUMBER METHOD LIFE DEPRECIATION DEPRECIATION ADJUSTMENT 2 COMMERCIAL BUILDING SL 18.00 7 651. 7 651. O. 4 COMMERCIAL BUILDIN(. SL 40.00 1 225. 1 194. 31. TOTALS 8 876. 8 845. 31. MACRS AMII' ADJUSTMENT 31. 728181 10-07-97 10460130 706230 11400 8.1 092 BOCO ASSOCIATES 11400_1 SCHEDUL{K-1. (Form.1065) Department at the TreMury Internal Revenue Service be innin Partner's Share of Income, Credits, De'ductions, etc. For calendar year 1997 or fiscal year 1997 and endin Partnershi 's identi in number Partnership's name, address, and ZIP code OMB No. 1545-0099 Partner's identi in number ..... Partner's name, address, and ZIP code 187 16 6525 19 ~ 23 2373389 1997 ZORA G BOWMAN 76 GREENS PRING DRIVE MECHANICS BURG PA 17055 A This partner is a [X] general partner D limited partner D limited liability company member What type of entity is this partner? ~ INDIVIDUAL is this partner a [X] domestic or a D foreign partner? Enter partner's (!)O~~=i;~t~~e Qi)~: of percentage at Profit sharing Loss sharing Ownership of capital OCO ASSOCIATES 3 LONG LANE ECHANICSBURG PA F Partner's share of liabilities: Nonrecourse Qualified nonrecourse financing Other 17055 B C o $ $ $ o. o. IRS Center where artnershi filed return: G 69.0000000% H 69.0000000% 69.0000000% PHILADELPHIA PA % % % Tax shelter registration number ..... Check here if this partnership is a publicly traded partnership as defined in section 469(k)(2) ................................ D E J Check a licabie boxes: 1 DFinalK-l 2 D AmendedK-1 Analvsls of Dartoer s can Ita account: (at Capital account at (b) Capital contributed (CJ Partner's share of lines (d) Withdrawals and (e) Ca~ital account at end ,4, and 7, Form 1065, o year {combine egmnmg of year during year Schedule M-2 distributions columns (a) through (d)) (a) Distributive share item (b) Amount (c) 1040 filers enter the amount in column (b) on: 1 Ordinary income (loss) from trade or business activities ................. o. } Net income (loss) from rental real estate activities 5 367. See page e 01 Partner's Instructions 2 for Schedule K-1 (Form 1065) 3 Net income (loss) from other rental activities .................................. ........... ....... 4 Portfolio income (loss): a Interest 745. Sch. B, Part I,line 1 "iii" b Dividends ...................................... .. . .. .... .......... ... ....... ..................... Sch. B, Part 1I,line 5 0 c Royalties Sch. E, Part I,line 4 0 ..... ...... ........................ ................ ........... ............ ........... do d Net short-term capital gain (loss) Sch. 0, line 5, col. (f) ~ E e Net long-term capital gain (loss): (1) 28% rate gain (loss) .. ....... ........ Sch. 0, line 12, col. (g) 0 u (2) Total for year Sch. 0, line 12, col. (f) .5 ................. ................ ....................... f Other portfolio income (loss) (attach schedule) Enter on applicable lines of ycur return 5 Gua.ranteed payments to partner .......... } 6 Net sec. 1231 gain (loss) (other than casualty or theft): a 28% rate gain (loss) See page 6 of Partner's Instructions 'or Schedule K.' (Form 1065) b Totai for year .... ..... .... .... ................. .... .................. .............................. 7 Other income (loss) (attach schedule) .. ...... Enter on aoclleable line of \lour return b~ 8 Charitable contributions (attach schedule) Soh. A, line 15 or 16 "~ 9 Section 179 expense deduction ...... } "00 ~+i 10 Deductions related to portfolio income (attach schedule) See page 7 of Partner's Instructions ... .............. for Schedule K-1 (Form 1065) 11 Other deductions {attach schedule\ ... . ...8EE...8TATEMENT.. 1 225. ~ 13 Other credits (Enter on applicable lines of your return) ~ ........... ~ Euj 14a Interest expense on investment debts Form 4952, line 1 ~(/) b (1)lnvestment income included on lines 4a, 4b, 4c, and 41 above 745. } See page 8 0' Partner's Instructions ~.. ~~ (2)lnvestment expenses included on line 10 above ... for Schedule K-1 (Form 1065) -~ .~ J!li;; 15 a Net earnings (loss) trom self-employment ........... ................................ o . Sch. SE, Section A or B ._~ "O~ b Gross farming or fishing income ~- ........ 1 s.. p.g.' of p"'"~', 'm"ructioo, U Gross nonfarm income forScheduleK-1 (Form 1065) C - - 16 a Depreciation adjustment on property placed in service after 1986 31. } ilBi ........ ............... See Partner's Instructions for i~i b Adjusted gain or loss Schedule K-1 (Form 1065) and Other adiustments and i~~~;;i;;;~~;ii;~~i~ii;~;;;~h;d~i;\H. Instrucllonsfor Form 6251 e 19 Tax-exempt interest income ................................................ ........ Form 1040, iine 8b - 20 Other tax-exempt income ..................... } ~ .l: 21 Nondeductible expenses See pageg of Partner's Instructions i5 22 Distributions of money (cash and marketable securities) for Schedule K-1 (Form 1065) 23 Distributions of orooertv other than monev .. . I JWA For Paperwork Reduction Act Notice, see Form 1065/nstructions. No Information Required for Page 2 Schedule K-l (Form 1066) 1997 1 711161 11-25-97 10460130 706230 11400 092 9 BOCO ASSOCIATES 11400 1 BOCO ASSOCIATES 23-2373389 SCHEDULE K-1 OTHER DEDUCTIONS DESCRIPTION AMOUNT PARTNER INSTRUCTIONS SECTION 754 DEPRECIATION - RENTAL REAL ESTATE 1,225. SEE PARTNER INSTRUCTIONS FOR SCH K-1 1,225. TOTAL TO SCHEDULE K-1, LINE 11 SCHEDULE K-1 COLUMN C RECONCILIATION DESCRIPTION AMOUNT RENTAL REAL ESTATE INCOME (LOSS) INTEREST INCOME OTHER DEDUCTIONS 5,367. 745. <1,225.> TOTAL TO SCHEDULE K-1, ITEM J, COLUMN C 4,887. 10460130 706230 11400 10 092 BOCO ASSOCIATES Partner Number 1 11400 1 2 SCHEDULE'K-1. (Form.1065) Department of the TreaSury lnlernal Revenue Service be innin Partner's Share of Income, Credits, Deductions, etc. For calendar year 1997 or fiscal year 1997 and endin Partnershi 's identi in number Partnership's name, address, and ZIP code OMS No. 1545-0099 Partner', identi in number ~ 187 - 3 6 -7 7 51 Partner's name, address, and ZIP code 19 ~ 23-2373389 1997 STEVEN BOWMAN 2999 DICKINSON AVENUE CAMP HILL PA 17011 A This partner is a CXJ general partner D limited liability company member What type of entity is this partner? ~ INDIVIDUAL Is this partner a [X] domestic or a D foreign partner? Enter partner's (i)O~~=i;~~~~e (ii) ~~ of percentage at Profit sharing Loss Sharing Ownership of capital D limited partner OCO ASSOCIATES 3 LONG LANE ECHANICSBURG PA F Partner's share of liabilities: Nonrecourse Qualified nonrecourse financing Other 17055 B C o $ $ $ o . o . IRSCentarwhere artnershi filed return: G 31.0000000% H 31.0000000% 31.0000000% PHILADELPHIA PA % % % Tax shelter registration number .... Check here if this partnership is a publicly traded partnership as defined in section 469(k)(2) D E Check a Iicable boxes: 1 DFina1K-1 2 D Amended K-l J Analvsis of nartner's canital account: (at Capital account at (b) C"tf,ital contributed (CJ Partner's share of lines (d) Withdrawals and (e) C'r,ital account at end ,4, and 7, Form 1065, o year (combine eglnnlng of year unng year Schedule M-2 distributions columns (a) through (d)) (a) Distributive share item (b) Amount (0) 1040 filers enter the amount in column (b) on: 1 Ordinary income (loss) from trade or business activities O. } Net income (loss) from rental real estate activities 2 411. See page 6 of Partner's Instructions 2 for Schedule K-1 (Form 1065) 3 Net income (loss) from other rental activities ... "... ........ 4 Portfolio income (loss): a Interest ................... 335. Sch. S, Part I, line 1 " b Dividends ......... Sch. 8, Part II, line 5 0 0 Royalties Sch. E, Part I, line 4 0 =- d Net short-term capital gain (loss) Sch. 0, line 5, col. (f) . E e Net iong-term capital gain (loss): (1) 28% rate gain (loss) ....................... Sch. 0, Hne 12, col. (g) 0 0 (2) Total for year Sch. 0, Hne 12, col. (f) .E f Other portfolio income (ioss) (attach schedule) Enter on applicable lines or your return 5 Guaranteed payments to partner .................................................................... } 6 Net sec. 1231 gain (loss) (other than casualty or theft): 0 28% rate gain (ioss) See page 6 01 Partner's Instructions forScheduleK-1 (Form 1065) b Total for year ............... .... ............ .......... ....... ............... 7 Other income IloSSI lattach schedule 1 . Enteron .......lIcable line of''''ur return , B Charitable contributions (attach schedule) Sch. A, line 15 or 16 00 9 Section 179 expense deduction } 'c ....................... "0 ..- 10 Deductions related to portfolio income (attach schedule) See page 7 01 Partner's Instructions C~ Other deductions lattach schedule 1 . for Schedule K-1 (Form 1065) 11 ~ 13 Other credits (Enter on applicable lines 01 your return) 0 . - Interest expense on investment debts Form 4952, line1 E"l 140 ,.'" b (1 )Investment income included on lines 4a, 4b, 4c, and 4f above 335. } See page 8 of Partner's Instructions ... .E1n (2)lnvestment expenses included on line 10 above. for Schedule K-1 (Form 1065) .. 0~ 15a Net earnings (loss) from self-employment O. Sch. SE, Section A or 8 ~. ......................................................... ._~ "c b Gross farming or fishing income .- 1 s.. p.g. g 01 Porto",', 'MlructloM ~ () Gross nonfarm income lor Schedule K.1 (Form 1065) C ~:~ 16a Depreciation adjustment on property placed in service after 1986 } SeePartner'slnslructionsfor el-l!!: b Adjusted gain or loss Schedule K-1 (Form 1065) and ~~~ ~...~ Other adiustments and t~;'~';~f~';~~~~ 'it~~~'(~tt~~h '~~h~d'~i~';"'" Instructions for Form 6251 e 19 Tax-exempt interest income Form 1040, line Bb ~ 20 Other tax.exempt income } . .<: 21 Nondeductible expenses See page 9 01 Partner's Instructions ~ 0 Distributions of money (cash and marketable securities) for Schedule K-1 {Form 1065} 22 23 Distributions of DrODertv other than monev .. JWA For Paperwork Reduction Act Notice, see Form 1065 Instructions. No Information Required for Page 2 Schedule K-1 (Form 1065) 1997 2 711161 11-25-97 10460130 706230 11400 092 11 BOCO ASSOCIATES 11400 1 BOCO ASSOCIATES 23-2373389 SCHEDULE K-1 COLUMN C RECONCILIATION DESCRIPTION AMOUNT RENTAL REAL ESTATE INCOME (LOSS) INTEREST INCOME 2,411. 335. TOTAL TO SCHEDULE K-1, ITEM J, COLUMN C 2,746. 10460130 706230 11400 12 092 BOCO ASSOCIATES Partner Number 2 11400 1 L.G. Connor Real Estate Appraisers Ltd. 2159 Market Street CampHill,PA 17011 7171737-0574 FAX, 7171737-3906 LG. CONNOR REAL ESTATE APPRAISERS LTD. July 28, 2001 Jet Vac Service & Equipment ATTN: Steve Bowman 3 Long Lane Mechanicsburg, PA 17055 ~cg~~ RE: 3 Long Lane, Mechanicsburg, PA 17055 Dear Mr. Bowman: As requested, 1 have completed a market value update of the appraisal dated April 29, 1999, of the above captioned property. As instructed, I have expressed the findings in a restricted appraisal format. This type of letter report is a restricted report and it represents little or no discussion of the data, reasoning and analysis that were used in the appraisal process to develop my opinion of value. Supporting documentation is retained in our office files. This update report is an extension ofthe original appraisal dated May 5, 1999, with the date of valuation (effective date) of April 29, 1999. I personally re-inspected the subject property on June 18, 2001. There has been no change in the improvements except for physical depreciation due to age and wear and tear. The purpose of this report is for estate settle purposes. The effective date of this update is May I, 200 I, which is the date of death of Zora Bowman. This appraisal has been prepared at your request. Your appraiser is not responsible for unauthorized use of this report. P A State Certified General Appraisers 4 PROPERTY IDENTIFICATION 3 Long Lane Silver Spring Township, Cumberland County, Mechanicsburg, PA 17055 Tax Parcel #38-21-0295-044A Description: One story detached light industrial building on slab utilized as a truck repair facility with office space. PURPOSE AND INTENDED USE OF THE APPRAISAL The purpose of this appraisal update is to estimate the retrospective market value of the fee simple interest in the land and improvements and other intangible rights in the subject property as of the date of death of Zora Bowman on May I, 200 I. The intended use of this repOlt is for estate settlement purposes. This update has been prepared at the direction of Mr. Bowman who is considered my client. This appraisal update report estimates the market value of the fee simple interest. It specifically addresses any changes in market conditions and the status of the subject since the effective dates of the original appraisal and analyzes the effect of these changes in arriving at a current value opinion for the subject. NOTE: This report can only be relied upon by a reader familiar with the ori~inal report. In reviewing this update, the client should consider it in the context of the original appraisal. MARKET VALUE DEFINITION Market Value is defined as "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the pl;ce is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 5 MARKET VALUE DEFINITION Cont'd: 2. both parties are well informed or weJl advised, and acting in what they consider their best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in United States doJlars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property as unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.,,1 PROCESS OF COLLECTING. CONFIRMING & REPORTING In preparing this appraisal, the appraiser re-inspected the subject improvements and land and re-examined information pertaining to the site, trends and neighborhood analysis. In addition, your appraiser reviewed all relevant properties that have sold since the prior effective date. These sales were then verified with related parties and as much data as possible about the properties and circumstances of the sales were obtained. I have rechecked zoning, utilities, easements, and any changes, etc. Based on this information, I have revisited a determination as to the highest and best use for the property as if vacant and as currently improved. I have researched my files and county records for updated sales of comparable land and similar buildings to the subject property. By these analyses, I estimated market value for the land and building based on differences from and/or similarities to the subject property. I have updated and reconsidered all three recognized approaches to value as completed in the original report. PROPERTY DESCRIPTION CHANGES The real estate has not undergone any significant changes since the original appraisal. The client is referred to the Oliginal report for a detailed description of the subject land and improvements. 'Uniform Standards of Professional Aooraisal Practice, 2001 Edition, The Appraisal Foundation, p. 188. 6 CHANGES IN MARKET CONDITIONS The overall market and subject neighborhood has remained rather stable, with no noticeable changes since the original report was completed. Most segments of the market have remained active with some noticeable increase in property value in certain market segments. Land values appear to be stable with industrial, some commercial, and retail increases. The leasing market has shown demand swings in quarterly reports, and rents have remained fairly stable since the last review. In addition, lender rates (interest rates) have changed, which impacts borrowing and cap rates. HIGHEST AND BEST USE The subject zoning has not changed from L-I, Light industrial classification. Following re-examination, it is the opinion of your appraiser that the highest and best use conclusion has not changed from the original report. As such, the highest and best use as vacant is believed to be for an industrial use. The highest and best use as improved is still believed to be its current use. COST APPROACH By this analysis, I have estimated the replacement cost new to construct a similar building at today's cost, adjusting for the time difference and other cost factors from the original report. I have deducted for physical depreciation due to normal wear and tear, and functional depreciation for lack of potable water which was stated in the original report. Included are the contributory value of the site improvements and the updated estimated land value. Thus yielding a value indication by the Cost Approach of $313,000. * * * $313,000 * * * INCOME APPROACH By the Income Approach, current market rents were researched and found to range from $5.00 to $7.00 on a net basis. Rent is estimated to remain at $6.00 per square foot. 7 INCOME APPROACH Cont'd: In addition, the capitalization rate computed by the Band of Investment is based on current lender rates and requirements. As stated previously, commercial lender rates (interest rates) have decreased since the previous valuation. Today, lender rates range from 7.0% to 8.00%. Based on these new market changes, my cap rate by the Band of Investment decreases to 0.103431, compared with 0.1112 in the previous valuation. The subject's estimated market value, as stabilized by the Income Approach, is calculated as follows. (Please see Addendum for a copy of the Income Approach update.) Stabilized Net Income $30,690 = = $297,000 Adjusted Overall Cap Rate 0,103431 PLEASE NOTE: My band of investment model reflects the actual lengthy series of decimals per component to derive the overall cap rate. The overall cap rate component shown above is rounded for illustration purposes. IMPROVED PROPERTY V ALUA nON I have researched sales of comparable property sales since the original report's effective date. Sales viewed to be most similar were reviewed and examined. Following is a summary of the six sales which I considered to be most comparable. Also included are the adjusted value indication for each market sale after adjustments for differences. In this update analysis, each market sale was adjusted for its primary differences to the subject. Three new market sales were included in my analysis. All sales were adjusted for time, given the superior market conditions today. Adjustments were warranted in several cases for location, building size, age/condition, functional utility, and land-to-building ratio. Following these adjustments, a value range from $44.00 to $49.00 per square 8 IMPROVED PROPERTY V ALUA TION Cont'd: foot is implied for the subject, with a greater frequency of value occurrence from $44.00 to $47.00. Based on my re-inspection of the property and my updated analysis of market data, I estimate the current market value by this approach to be $46.50 per square foot. When applied to the subject property, the estimated retrospective market value is calculated as follows. (Please see the Addendum ofthis report for the Sales Comparison Approach update.) 6,240 sq.ft. x $46.50/sq.ft. = $290,160 (ROUNDED) = $290,000 RECONCILIA nON AND CONCLUSION Cost Approach Income Approach Sales/Market Approach $313,000 $297,000 $290,000 This report represents an updated analysis of the original appraisal, dated May 5, 1999, with the date of valuation (effective date) of April 29, 1999. The date of re-valuation (effective date) of this update is May I, 2001. In this letter, ! have summarized my conclusions for each approach which was included in the original report. Supporting documentation is retained in my files. By the Cost Approach, there was more change in value, showing an increase since my previous valuation. This would be due to increase in costs of construction. By the Income Approach, interest rates have increased, which directly affects the capitalization rate by the band of investment, thus affecting estimated value. In this case, NO! has also increased, given the superior market conditions today. As stabilized, my market value estimate of $297,000 is above my previous market value estimate of$288,000. By the Sales Comparison Approach, my findings and conclusions imply superior market conditions today, with a slight increase by this approach. Greatest 9 RECONCILIA nON AND CONCLUSION Cont'd: weight is given to the Sales Comparison/Market Approach which reflects the reactions of typical buyers and sellers in the market place. Sales ofa minimum of three properties were documented and analyzed. A major segment of commercial real estate of this type is owner-occupied. For this type of property the Income Approach is usually less significant than the Sales Comparison/Market Approach or the Cost Approach because owner-occupants are not interested in leasing. PLEASE NOTE: This market value update is intended to be used in conjunction with and should be considered only in the context of the original appraisal report. Taking all of the foregoing factors into consideration and based on a reasonable marketing time as defined and contingent upon Assumptions and Limiting Conditions as stated in the original report, it is my opinion that the property had an estimated retrospective market value as of May I, 200 I, of: TWO HUNDRED AND NINETY THOUSAND ($290,000) DOLLARS The value opinion reported is qualified by certain definitions, limiting conditions, and certifications which are set forth in this update report. The information and opinions contained in this restricted appraisal set forth the appraiser's best judgement in light of the information available at the time of the preparation of this update report. This report can be relied upon only by a reader familiar with the original report. In reviewing this update, the client should consider it in the context of the original appraisal. Any use of this restricted appraisal by any other person or entity, or any reliance or decisions based on this restricted appraisal are the sole responsibility and at the sole risk of the third party. I accept no responsibility for damages suffered by any third party as a result of reliance on or decisions made or actions taken based on this report. Employment in and compensation for making this appraisal are in no manner contingent upon the value reported. I certify that I have no financial interest in the property appraised, present or contemplated, and that the appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. This report is considered a restricted appraisal report and is intended for use by Steve Bowman for estate settlement purposes, only. The client should 10 consider this report in the context of the original appraisal. This update report cannot be understood properly without additional information contained in your appraiser's work files. This information is available for inspection upon your request. Respectfully, .1!~Zwwef P A State Certified General Appraiser Certification Number GA-OO I 260-L Enc!. File No. 01-153 II EXPOSURE TIME ESTIMATE The reasonable marketing time is an estimate ofthe amount of time it might take to sell a property interest in real estate at the estimated market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal. Exposure time is ditTerent for various types of real estate and under various market conditions. It is noted that the overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time, but also adequate, sufficient and reasonable etTort. This statement focuses on the time component. Exposure time may be defined as follows: The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market. The fact that exposure time is always presumed to occur prior to the effective date of appraisal is substantiated by related facts in the appraisal process: supply/demand conditions as of the effective date ofthe appraisal; the use of current cost information; the analysis of historical sales infonnation (sold after exposure and after completion of negotiations between the seller and buyer); and the analysis of future income expectancy estimated from the etTective date ofthe appraisal. Historically, commercial properties are listed with brokers tor periods ranging between 6 to 18 months, usually depending upon the size and usage of the property. Based upon discussions with brokers and investors and on market data, I estimate that the exposure time for the subject property would range between the historic 6 to 18 months. 11 APPRAISER'S CERTIFICATION I certify that, to the best of my knowledge and belief: - The statements of fact contained in this report are true and correct. - The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. - I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. - I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. - My engagement in this assignment was not contingent upon developing or reporting predetermined results. - My compensation for completing this assignment is not contingent upon the development or reporting of a predetennined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. - My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Unifoml Standards of Professional Appraisal Practice. - No one provided significant professional assistance to the person signing this report. - The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. I certify that, to the best of my knowledge and belief, the reported analyses, opinions and conclusions were developed and this report has been prepared in conformity with the requirement of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. ~~ Karen Darney / P A Certified General Appraiser Certification No.: GA-OOI 260-L 13 UNAPPARENT CONDITIONS It is assumed there are no hidden or unapparent conditions of the property, subsoil or structures, including possible existence of dry rot, fungus, termites or other vermin, which might render it more or less valuable than an otherwise comparable property. No responsibility is assumed for such conditions nor for any engineering required to discover such things. Physical items described are to be used as a general guide for property valuation and not as a complete and detailed physical report. Conditions behind walls, above ceilings, behind locked doors, or under the ground which are not exposed to casual view, were not inspected. No warranty is given or implied on structural or mechanical items of the property. I suggest that an expert be hired for a detailed investigation, if desired. A structural pest control report has not been obtained for this valuation. If such report would uncover necessary corrective work, which is normally perfonned at the expense of the current owner, this cost would be deducted from the estimated value. Subsurface rights such as minerals, oil and gas deposits were not considered in this report. Your appraiser has not been provided with a soil analysis offering evidence of the structural ability of the subsurface for support of improvements. Upon personal inspection, your appraiser did not notice physical indications that supporting strata would be unsuitable for improvements. While the land surface has been inspected, as far as possible, by observation, it was not possible to personally observe conditions beneath the soil. Therefore, no representatives are made as to these matters. The value estimate is subject to any soil conditions that would cause a loss in value. In this appraisal assignment, the existence of potentially hazardous material used in construction or the maintaining ofthe building or the gases found in the environment (such as the presence of urea formaldehyde insulation, toxic waste, and/or radon gas) which mayor may not be present in the propeliy, has not been considered. Your appraiser is not qualified to detect such substances. I urge the client to retain an expert regarding these matters. 14 ASSUMPTIONS AND LIMITING CONDITIONS I assume no responsibility for matters legal in character nor do I render any opinion as to the title, which is assumed to be good; existing liens and encumbrances have been disregarded; and the property is appraised as though free and clear under responsible ownership and competent management. I believe to be reliable the information identified in this report as being furnished to me by others, but I assume no responsibility for its accuracy. I assume that the utilization of the land and improvements is within the boundaries of the property lines of the property described and that there is no encroachment or trespass unless noted within the report. No survey of the property has been made by your appraiser and no responsibility is assumed in connection with such matters. Any maps, plats, or drawings reproduced and included in this report are intended only for the purpose of showing spatial relationships. Possession of this report, or a copy thereof, does not carry with it the right of publication, nor may it be used for any purpose by any but the applicant and, in any event, only with proper qualitications. I have no present or contemplated interest in the property appraised. The distribution of the total valuation ofthis report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. I am not required to give testimony or to appear in court by reasons of this appraisal, with reference to the property in question, unless arrangements have been previously made therefor. Mathematical models are based on estimates and assumptions that are inherently subject to uncertainty and variation; I do not represent them as results that will actually be achieved. This report has been made in conformity with the Unifonn Standards of Professional Appraisal Practice and the Appraisal Institute. 15 ASSUMPTIONS AND LIMITING CONDITIONS Cont'd: The Americans with Disabilities Act (ADA) became effective January 26, 1992. Your appraiser has not made a specitic compliance survey and analysis of this property to determine whether or not it is in contonnity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of requirements of the act. If so, this fact could have a negative effect upon the value of the property. Since your appraiser has no direct evidence relating to this issue, possible noncompliance with other requirements of ADA was not considered in estimating the value of the property. Your appraiser is not expert in this area and recommends that you contact a professional. Unless otherwise stated in this report, problems with Year 2000 compliance were not investigated, nor called to the attention of, nor did your appraiser become aware of such during your appraiser's inspection. Problems with Year 2000 compliance of embedded systems and the cost to correct them could affect the value of the property but your appraiser is not qualified to recognize or estimate the cost to solve such problems, unless otherwise stated. The value estimated herein is predicated on the assumption that no such Year 2000 problems exist and no responsibility is assumed tor any such problems, nor for any expertise or knowledge required to discover them. ****************** 16 l! - --- - CDNNDR REAL ESTATE APPRAISERS 2159 Market Street Camp Hill, PA 17011-4707 717 737-0574 . FAX 737-3906 QUALIFICATIONS KAREN DARNEY PROFESSIONAL EXPERIENCE: August, 1994 to Present: L. G. Real Estate Appraisers, Ltd. Broker/Owner and fee appraiser of large and small commercial and industrial properties, fanns, condemnations, tax appeals, vacant ground, multi-tinnily units and single family homes including new construction, condominiums and employer rclocation. April, 1994 to August, 1994: Lester G. Connor, MAL Fee appraiser - large and small commercial and industrial properties, farms, condemnations, tax appeals, multi-family and single tinnily residential properties including new construction, condominiums and employer relocation. February, 1992 to April, 1994: K. Jesse Reitenbach Associates, LTD. Fee appraiser - commercial and single family residential properties including new construction, condominiums and employer relocation. October, 1990, to January, 1992: Associate Broker doing residential sales for Jack Gaughen Realtor and Coldwell Banker MGM Realty, Inc. Managed and sold new construction in nine developments; and, sold resale properties. September, 1985 to September, 1990: Associate Broker with Coldwell Banker MGM Realty, Inc.. Oftice manager tor offices located in Hershey and Middletown, P A. December, 1979 to August, 1985: Sales Associate tor Owen-Gross, Inc., Partl1ers. Real Estate Instructor for the Institute of Real Estate Studies teaching in Harrisburg and York. EDUCATION: 1969 West Virginia University i\1organtown, WestYirginia Bachelor ot SCIence In Nurs1l1g Post Graduate Academic Education: 1974 University of North Carolina Chapel Hill, North Carolina 1972-73 Temple University Harrisburg, Pennsylvania ]7 Pennsylvania State Certified General Appraisers EDUCATION Cont'd: APPRAISAL COURSES: Real Estate Analysis, RA2 Appraisal Standards and Ethics, RA5 Acceptable Residential and Commercial Appraisals Cost and Income Approaches, RA4 Appraisal Principals, 1110 Appraisal Procedures, 1120 NalTative Appraisal Report Residential Case Study, 1210 Appraisal Reporting of Complex Residential Properties - Appraisal Institute Income Approach to Appraisal Basic Income Capitalization, 1310 Advanced Income Capitalization, 11510 Appraising for FHA Insured Loans Standards of Professional Practice, Part A - 1410 Standards of Professional Practice, Part B - 1420 Report Writing and Valuation Analysis, 11540 Fundamentals of Relocation Appraising - Appraisal Institute Marshall & Swift Commercial Cost Approach Highest and Best Use and Market Analysis, 11520 Easement Valuation - Appraisal Institute The Appraiser's Legal Liabilities - Appraisal Institute Appraisal of Nursing Facilities - Appraisal Institute Advanced Sales Comparison and Cost Approach, JJS30 Valuation of Leased Fee Interests - Appraisal Institute Valuation of Leasehold Interests - Appraisal Institute Partial Interest Valuation- Divided - Appraisal Institute FHA Appraisal Inspection from the Ground Up - Appraisal Institute REAL ESTATE COURSES: Real Estate Law Investment Fundamentals and Practice Fair Housing & Law - PROFESSIONAL DESIGNATIONS AND LICENSES: 1994 Pennsylvania Broker License #RB-044264-L 1994 Appraisal Institute Affiliate, Candidate for MAl, #M940777 1994 Pennsylvania State Certified General Appraiser, GA-001260-L 1992 Certitied Commercial Real Estate Appraiser (CCRA), National Association of Real Estate Appraisers. #46120 IS PROFESSIONAL DESIGNATIONS AND LICENSES Cont'd: 1992 Certitied Dispute Settler in Dispute Resolution System Mediation, National Academy of Conciliators. 1988 Celiitied Residential Specialist (CRS), Residential Sales Council of the Realtors National Marketing Institute. #7636 J 988 Certified Code of Ethics Instructor, Pennsylvania Association of Realtors. 1985 Pennsylvania Real Estate Instructor, License #RI-00648-A 1984 Pennsylvania Real Estate Associate Broker #AB-044264-A 1982 Graduate Pennsylvania Realtors Institute (GRI), a National Association of Realtors Designation. 1979 Pennsylvania Salesperson License #RS-I22124-A PROFESSIONAL ORGANIZATIONS: Appraisal Institute, Affiliate Member Central Pennsylvania Chapter, Appraisal Institute State Accredited Affiliate Representative, Board of Directors Pennsylvania Association of Realtors Board of Directors, 1996, J 995, 1994, 1993, 1992; Committee(s) Member Greater Harrisburg Association of Realtors; Past President - 1996; President - 1995; Board of Directors - J 987 to 1997; held all officer positions, instructor, chainnan of various committees Foundation Board of Directors COURTS OF TESTIMONY - EXPERT WITNESS: Cumberland County Lebanon County Dauphin County Adams County FEE APPRAISER AND CONSULTANT TO: Various banks, mortgage companies, credit unions, employee relocation companies, bmker trade programs. Approved appraiser for Pennsylvania Department of Transportation and as a HUD (FHA) appraiser. The majorityohppraisalscompleted are in Cumberland, Dauphin, Perry, YOrk, and Lebanon Counties. 19 A .Ju(v 28. 2001 Page 21 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS LOCATION: 3 Long Lane, Silver Spring Township, Cumberland County, Mechanicsburg, P A 17055 OWNERS OF RECORD: Boca Associates TAX lD NUMBER: 38-21-0295-044A LAND DATA: Size: 2 acres Shape: Irregular Zoning: L-I, Light Industrial IMPROVEMENTS: One story detached metal sided truck repair/office on slab containing 6, 240 square feet. PERSONAL PROPERTY: None included in this report UTILITIES: Private water (not potable) and Private sewer RIGHTS APPRAISED: Unencumbered fee simple estate HIGHEST AND BEST USE: As Vacant: As Improved: Industrial uses As currently utilized as a truck repair/office PURPOSE: Retrospective Market Value for estate settle purposes CURRENT TAXES: $4,135.30 (Recommend a tax appeal) V ALUE ESTIMATES: Cost Approach Income Approach Sales/Market Approach $313,000 $297,000 $290,000 ESTIMATED MARKET VALUE: $290,000 REASONABLE EXPOSURE TIME: 6 to 18 Months DATE OF VALUATION: DATE OF INSPECTION: DATE OF REPORT: May 1,2001 June 18,2001 July 28, 2001 21 \; ffiifi SUBJECT PHOTOGRAPHS .JIIIF 28, 200f Page 23 CURRENT REAL ESTATE TAXES Cumberland County has recently completed a county wide re-assessment. The new assessed value reflects 100% of the estimated market value. The subject property has been re-assessed as follows: (Tax ID #38-21-0295-044A) Land Value Improvement Value $ 49,480 314.960 Total Value $ 364,440 The 200 I real estate taxes are as follows: County Municipal School $ 685.88 239.D7 3210.35 Total $ 4,135.30 Based on the enclosed market data, I would recommend a tax appeal. 13 BUILDING TYPE Light Industrial CONSTRUCTION ClASS t GRADE Class S -Good Cost GROSS FLOOR AREA 6240 NUMBER OF STORIES 1 PERIMETER 328 HEIGHT PER STORY 8 CLIMATE MODERATE BASE COST (Marshall & Swift Cost Servicel $38.32 BASE. COST ADJUSTMENTS HVAC $1.25 Other $0.00 Miscellanous: $0.00 TOTAL ADJUSTMENTS $1.25 ADJUSTED BASE COST/8.f. $39S7 BASE COST REFINEMENTS HEIGHT PER STORY 1.000 AREA t SHAPE MULTIPLIER 1.000 LOCAL COST MULTiPLIER 1.000 CURRENT COST MULTIPLIER 1.010 TOTAL MULTIPLIER 1.010 REFINED BASE COSTtS.F. $39.97 EST. REPLACEMENT COSTS $249413 TOTAL REPLACEMENT COST: $2494U DEPRECIATION PERCENT ($49883\ PHYSICAL 20.0% FUNCTIONAL 5.0% 1$12471) ECONOMIC 0.0% $0 TOTAL DEPRECIATION 25.0% ($62353) DEPRECIATED COST $187060 TOTAL DEP. BLDG. COST $187060 DEPR. SITE IMPROVEMENTS ASPHALT DRIVE & LOT $20000 $20000 TOTAL COST OF IMPROVEMENTS $207060 ENTREPRENEURJALPROFIT 10% $20706 TOTAL COST OF IMPROVEMENTS; BUILDING: $227766 Estimated Land Value Site Size (Acres) ~ 2.00 42,500 $65000 VALUE BY THE COST APPROACH Adjusted Value $312,766 Rounded To $313000 SOURCE: MarshaH Valuation Service, apprais{1rs files; and our experience as real estate appraiSt1rs; STABiliZED OPERATING STATEMENT Officeltruck repair 6240 $6.00 $37,440 Gross Potential Income 6240 $6.00 $37,440 Less Vacancv & Collection Loss 5.0% $0.30 $1 872 Effective Gross Income $5.70 $35,568 Ooeratino Exoenses % of Effective $$ Isf Total Reserve For Replacement 4.50% $026 $1600 Management I Leasing fees 5.00% $0.29 $1778 ProfessionaULeaauAccountinn fees 4.22% $0.24 $1500 Total Exoenses 13.7% $0.78 $4.878 Net Operating Income 86.28% $4.92 $30690 CAPITALIZATION Loan-To-Value Ratio 75.0% ( Market \ Interest Rate 7.50% Term (Years 15 EriUitv-To-Value Ratio 25.0% Enuilv Dividend Rats 8,00% Mortoaoe Constant 0.1112 BAND OF INVESTMENT Loan Ratio x Mortoaoe Constant 0.083431 " Amounts are Rounded Automatically Eollll\l Ratio x EouillL Dividend Rate 0.020000. In thls.lIIlDrOach." Caoitalization Rate 0.103431 Net Ooeratlna Income CaD. Rate = I Value $30690 0.103431 = $296715 Sq.Ft. $$JSq.Ft. ANNUAL Ad'usted Value 296,715 Implied Mortgage Principle Annual Debt Service Debt Coverage Ratio Gross Income Multiplier Operating Expense Ratio Value Per Sq. Ft. Rentable Value Per S . Ft. Gross Bid $222750 $24779 1.24 7.ft3 13.7% $47.60 $47.60 Value Indication: $297000 ~ - r- Noi~~ @~r !#~f#:e ,!Olt ,!~" hi I~ !illt h . ~ 0 H II: << l;I N t:g =. << g~~~:;;~ .lio .li 0 ~ailtl ! :I N ;! :;;~~ ! '" " ..- .Jl'" " l:I 1-0) 1/t" 8 ~! ~ ,. .. h ~ !'! ~H~ ~2~S i!;l~\2;;~~ h }2" I~ ~# .g:o " h ~ " i ~ Nj"" ~ ~"" :l ~"~!oa ...~ .lio i~"" ,'" v I!! a '" " " '" N ~.'" ~ d ~ l'!"n !:;1;l:8ll! .....InNN I5L ~~ .. -ii" h ~ !l ~"~T~~i!l~ l\l~ill;;"= ,!~" .g~ I~ -2~~ " Ii -" " - i<e:;: .....~ ~...~~:;;~ ~'" .li 0 ~~ i~M .lio ~ ..: a ;! j!)o~ {D_ " ' . 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NEIGHBORHOOD COMMERCIAL '~ COMMUNITY , COMMERCIAL . HIGHWAY . COMMERCIAL PROFESSIONAL OFFl CE LI GH T INDUSTRIAL ~ GENERAL ~ INDUSTRIAL INTERCHANGE , \ 221.1. 221.2. SECTION 221 LIGHT INDUSTRIAL ZONE (I~I) Purpose - This Zone provides for small-scale, light industrial uses. In addition, wholesale businesses involving substantial outdoor storage of unfinished materials are also permitted. Generally, the uses cited attempt to create and sustain a distinct light industrial character that differs from the heavier industries and high traffic-generating commercial uses. Appropriate design standards have been imposed to prevent the blighted and over-developed small-scale industrial concentrations, characteristic of the older, small-scale industries. Permitted Uses I. Agricultural, subject to the standards listed in Section 201 of this Ordinance; 2. Laboratories for medical, scientific, or industrial research and development; 3. Manufacturing, packaging, and associated storage and/or wholesaling of the following: A. Furniture, cabinets, fixtures, office supplies, floor and ceiling materials, and other household appointments; B. Scientific, specialized and technical instruments and equipment; C. Hardware and software for audio-video components, computers, vending machines and video games; D. Finished textile products; E. Brushes, brooms and combs; F. Hot tubs, spas, saunas and swimming pools; G. Jewelry, and other precious metals; H. Photographic, lighting and timekeeping equipment; 1. Small household appliances, excluding major appliances; J. Musical instruments and sporting equipment; K. Cosmetics, toiletries and pharmaceuticals; L. Optical, dental, and medical supplies and equipment; and, M. Small or novelty products from prepared materials (excluding the use of sheet metals). 4. Processing, packaging, storage and/or wholesaling of food products excluding: A. Breweries and distilleries; B. Pickling processes; C. Rendering or slaughtering operations; and, D. Sugar refineries. 5. Storage and/or wholesaling of the following, provided the site is set back no less than five hundred (SOO) feet from the closest residentially-zoned property: A. Home and auto-related fuels; B. Nursery and garden materials, and stock; C. Contractor supplies; and, D. Plumbing, heating, air conditioning, electrical, and other structural components of buildings; 6. Photocopying, bookbinding, printing, and publishing operations; 221.3 221.4. 221.5. 221.6. 221.7. 7. Machine shops; 8. Repair shops for products permitted to be manufactured in this Zone; 9. Small engine repair shops; 10. Welding shops; 11. Sign-makers; 12. Offices; 13. Public uses and public utilities excluding communication antennas, towers, and equipment; 14. Agricultural support businesses, including: A. Facilities for the commercial processing, and warehousing of agricultural products; B. Facilities for the warehousing, sales, and service of agricultural equipment, vehicles, feed, or supplies; and, C. Veterinary offices, animal hospitals, or kennels; 15. Vocational and mechanical trade schools; 16. Accessory uses customarily incidental to the above permitted uses, including accessory retail sales of products produced on-site, so long as the sales area is no more than ten percent (10 %) of the total building area or three thousand (3,000) square feet, whichever is less; 17. Mini-warehouses (see Section 336); and 18. Commercial day-care facilities (see Section 328). Conditional Uses (Subject to the requirements listed in Section 704 of this Ordinance.) 1. Recycling facilities for paper, plastic, glass and metal products (see Section 443); Required Public Utilities - All uses permitted within the zone where sewage flows (actual or projected) equal or exceed 1125 gallons/day shall require the use of public sewer and water. Lot Area Requirements - Unless otherwise specified, each use within this Zone shall have a minimum lot size of twenty thousand (20,000) square feet. See Section 319 for Public Utilities Structures. Minimum Lot Width - One hundred (100) feet. See Section 319 for Public Utilities Structures. Maximum Lot Coverage - Sixty percent (60%); however, lot coverage can be increased subject to the requirements of Section 317 of this Ordinance. .95- Silver Spring TownShip Zoning Ordinance Article 2 Zoning Regulations 221.8. 221.9. 221.10. Minimum Setback Requirements2 (principal and Accessory Uses) 1. Front yard setback: Required Required Required Front Yard Setback Front Yard Setback Front Yard Setback U,. from Local Road from Collector Road from Arterial Road Buildings and Structures, 50 ft. 50 ft. 50 ft. Excluding Signs Off-Street Parking 20 ft. 30 ft. 30 ft. Off-Street Loading Not permitted Not permitted Not permitted in front yard. in front yard. in front yard. Outdoor Storage Areas Not permitted Not permitted Not permitted in front yard. in front yard. in front yard. Outdoor Display Areas 20 ft. 30 ft. 30 ft. *Poperties within this Zone aTe also subject to required setbacks from the Carlisle Pike listed in Section 303.3. of this Ordinance. ~See Section 319 for Public Utilities Structures. 2. Side yard setbacks - All buildings and structures shall be set back at least twenty-five (25) feet from the side lot lines. Off-street parking lots, loading areas, and outdoor storage areas shall be set back at least fifteen (15) feet from the side lot lines, unless joint parking facilities are shared by adjoining uses. In such instances, one of the side yard setbacks can be waived solely for parking facilities; 3. Rear yard setback - All buildings and structures shall maintain a twenty- five (25) foot rear yard setback; off-street parking lots, loading areas, and outdoor storage areas shall be set back at least fifteen (15) feet from the rear lot line; 4. Building separation setbacks - For multiple buildings contained on the same lot, there shall be provided a minimum of twenty-five (25) feet between the closest points of such buildings; and, 5. Residential buffer strip - Any lot adjoining land within a residential zone shall maintain a fifty (50) foot setback for buildings, principally used as a residence and/or structures, off-street parking lots, loading areas, and outdoor storage areas from the residentially-used and/or zoned parcels. Maximum Permitted Height - Forty-five (45) feet, provided that no habitable space be located above thirty-five (35) feet, and that all structures exceeding thirty-five (35) feet in height shall be set back a distance at least equal to their height from each property line. Sigrn - Signs shall be permitted as specified in Section 313 of this Ordinance. 221.11. 221.12. 221.13. 221.14. 221.15. 221.16. Screening - A visual screen must be provided along any adjoining lands within a residential zone, regardless of whether or not the residentially-zoned parcel is developed. Landscaping - Any portion of the site not used for buildings, structures, parking compounds, loading areas, outdoor storage areas, and sidewalks shall be maintained with a vegetative ground cover and other ornamental plantings. A minimum fifteen (15) foot landscape strip shall be provided along property lines. Waste Products - Storage of industrial waste materials shall not be permitted, except within an enclosed building. Dumpsters used for domestic garbage may be permitted within the side or rear yard, provided such dumpsters are screened from any adjoining roads or properties. Such dumpsters shall not be used for industrial wastes. All dumpsters shall be set back twenty-five (25) feet from all lot lines and fifty (50) feet from any adjoining residentially-zoned property. All trash dumpsters shall be located within a side or rear yard, screened from adjoining roads or properties, and completely enclosed within a masonry or fenced enclosure equipped with a self-latching door or gate. All uses shall comply with Section 302.4. of this Ordinance. Industrial Operations Standards - All industrial operations shall be in compliance with any Commonwealth of Pennsylvania and/or Federal government regulations, as required by the most recent regulations made available from these governmental bodies. (See Section 315 for a partial listing.) Outdoor Storage and Display - Within this Zone, outdoor storage is permitted, provided all outdoor storage areas are screened from adjoining roads and properties, and the outdoor storage areas comply with the setbacks imposed within this section. Outdoor display areas need not be screened from adjoining roads, if they are located within the front yard. All uses permitted within this Zone shall also comply with all applicable General Provisions in Article 3 of this Ordinance. -97- Silver Spring Township Zoning Ordinance Article 2 Zoning Regulations """',"EX<'''''. COMMONWEALTH OF PENNSY\..VANIA INHERITANCE TAX RETURN SIDENT DECEDENT ESTATE OF SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY BOWMAN, ZORA G. FILE NUMBER 21-01-00489 Include the proceeds of litigation and the date the proceeds were received by the estate. All property jointly-owned with the right of survivorship must be disclosed on Schedule F. ITEM NUMBER 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. VALUE AT DATE OF DEATH DESCRIPTION Household G::lods - appraised value Autanobile - 1996 Buick - sale price PNC Bank - Interest Checking Account NO. 51-4000-6204 Date of death balance, plus accrued interest 2,600.00 6.100.00 54,406.01 PNC Bank - Money Market Account No. 50-0204-8668 Date of death balance PNC Bank - Certificate of Deposit No. 31-400170417 Date of death balance, plus accrued interest PNC Bank - Certificate of Deposit No. 31-900170173 Date of death balance, plus accrued interest PNC Bank - Certificate of Deposit No. 31-400175620 Date of death balance, plus accrued interest PNC Bank - Certificate of Deposit No. 31-100177012 Date of death balance, plus accrued interest Mid Penn Bank - Now Account No. 9005455 Date of death balance, plus accrued interest Fulton Bank - Certificate of Deposit No. 025-0112727 Date of death balance, plus accrued interest First Union - Certificate of Deposit No. 247412051275356 Date of death balance, plus accrued interest American Express Investment Account No. 0816 5153 1 001 Date of death value Loan - Jet Vac service, Inc. to Zora G. Bowman Date of death balance, plus accrued interest Adams Electric cooperative - Date of death value United States Treasury - tax rebate 533.49 7,634.66 16,117.16 10.792.87 3,258.33 9,920.40 31, 409.35 23,132.00 138,301. 59 76,998.11 1,149.63 300.00 TOTAL (Also enter on line 5. Recapitulation) $ 382, 653 . 60 (If more space is needed, insert additional sheets of the same sizel Rev.""""I'."}. COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON.PROBATE PROPERTY BOWMAN, ZORA G. FILE NUMBER 21-01-00489 ESTATE OF This schedule must be completed and filed if the answer to any of questions 1 through 4 on the reverse side of the REV.1500 COVER SHEET is yes. DESCRIPTION OF PROPERTY %OF ITEM INCLuceTHE lWAE OF THE TRANSFEREE. THEIR R8.ATlOtISHIPTO DECEDEUT AND THE OATE OFTRANSFER. DATE OF DEATH DECO'S EXCLUSION TAXABLE VALUE ATTACHACOP'l'OFTlIEOEEDFORREALESTATE. IFAPPLICABLEI NUMBER VALUE OF ASSET INTEREST 1. 4/28/01 - Patricia Dapp - gift - daughter 10,000.00 3,000.00 7,000.00 2. 4/28/01 - Rick Dapp - gift - son-in-law 10,000.00 3,000.00 7,000.00 3. 4/28/01 - Steven G. Bowman - gift - son 10,000.00 3,000.00 7,000.00 4. 4/28/01 - Judith Bowman - gift - daughter-in-law 10,000.00 3,000.00 7,000.00 5. 4/28/01 - Elnily Markel - gift - granddaughter 2,000.00 3,000.00 -0- TOTAL (Also enler on line 7, Recapilulation) $ (If more space is needed, insert addilional sheets of the same size) 28,000.00 REV'"IS11 EX+ (12-99) ,:. ".~..,~ ~,.",... Tl'~' !.' .~~&- COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE Ii FUNERAL EXPENSES & ADMINISTRATIVE COSTS ITEM AMOUNT NUMBER DESCRIPTION A. FUNERAL EXPENSES: 1- Cremation Society 1,100.00 2. Patricia Dapp - funeral brunch 581. 40 3. Steven G. Bowman - reimbursement for Memorial Service charges 680.00 B. ADMINISTRATIVE COSTS: 1. Personal Representative's ~ommissions Name 01 Personal Representalive{s} Social Security Number(s)/EIN Number of Personal Represenlative(s} Street Address City Slat. _ Zip Year(s) Commission Paid: 2. Attorney Fees - Johnson, Duffie, Stewart & Weidner 7,500.00 3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant Street Address City Stat. _ Zip Relationship 01 Claimant to Decedent 4. Probate Fees - Register of wills - Cumberland County 557.50 5. Accountant's Fees - Waggoner, Frutiger & Daub 9,000.00 6. Tax Return Preparer's Fees 7. Cumberland Law Journal - advertise letters 75.00 8. The Patriot-News - advertise letters 99.24 9. Register of wills - short certificates 15.00 10. Register of Wills - file INventory & Inheritance Tax Return 25.00 11. Patricia Dapp - reimbursement for repairs to autanobile prior to sale 105.57 12. Chuck Bricker - household goods appraisal 75.00 13. L. G. Connor - appraisal - 76 Greenspring Drive 275.00 Total fran additional sheet 12,006.46 TOTAL (Also enter on line 9, RecapitUlation) $ 32.095.17 BOWMAN, ZORA G. Debts of decedent must be reported on Schedule 1. FILE NUMBER 21-01-00489 ESTATE OF (If more space is needed, Insert additional sheets of the same size) SCHEDULE H - CONTINUED ESTATE OF: BOWMAN, ZORA G. 21-01-00489 14. Walker Realty - commission - sale of 76 Greenspring Drive 15. Walker Realty - transaction fee 16. Silver Spring Township - sewer 17. Recorder of Deeds - 1 % transfer tax 18. Affiliated Settlement Services Group - delivery fee 19. Notary Fees 20. PP&L - service - May/December 21. Comcast - final cable charges 22. Verizon - telephone charges 23. AT&T - telephone service 24. York Disposal- trash 25. Silver Spring Township - sewer charges 26. The Patriot-News Co. - advertising charges - sale of automobile 27. Debra B. Weist, Tax Collector - school district taxes 28. Home Depot - paint & supplies for house repairs prior to sale 29. United Water - May/December 30. PNC Bank - check printing charge - estate checks 31. Farmers New Century Insurance - automobile and homeowner's insurance 32. Reserve for close-out costs Sub-total 7,680.00 75.00 153.05 1,280.00 15.00 5.00 321.64 31.33 45.48 24.69 58.68 161.50 19.00 1,368.56 74.40 71.64 48.70 397.79 175.00 $ 12006.46 . . REV.""<<'I'."I~~. ~ COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE I DEBTS OF DECEDENT, MORTGAGE LIABILITIES & LIENS BOWMAN, ZORA G. FILE NUMBER 21-01-00489 ESTATE OF Include unreimbursed medical expenses. ITEM NUMBER DESCRIPTION AMOUNT 1. Chase Bank - Mortgage Loan Number 1937055574 Date of death balance Holy Spirit Hospital - decedent's account balance Mellon Bank - MasterCard Account - balance due 62,628.57 360.00 455.99 2. 3. 4. Checks that cleared after death - PNC Bank Account No. 51-4000-6204: patricia Dapp - reimbursement for groceries/medications provided decedent Live-in-Care - services to decedent Patricia Dapp - gift - daughter Steven G. Bowman - gift - son Rick Dapp - gift - son-in-law Judith Bowman - gift - daughter-in-law Emily Markel - gift - granddaughter 83.50 119.00 10.000.00 10.000.00 10,000.00 10,000.00 2,000.00 5. Steven G. Bowman - reimbursement for groceries/medications provided decedent 247.06 6. Holy Spirit Hospital - medicare deductible not covered by insurance 714.00 TOTAL (Also enter on line 10, Recapitulation) $ 106,608.12 (If more space is needed, insert additional sheets of the same size) ',"""'''''''''~ '~~ COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT . . SCHEDULE J BENEFICIARIES RELATIONSHIP TO DECEDENT AMOUNT OR SHARE NUMBER NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY Do Not List Trustee(s) OF ESTATE 1. TAXABLE DISTRIBUTIONS (include outright spousal distributions) 1. Patricia B. Dapp - 207 Pine Woods Road Daughter 46% BOCO;one-half Wellsville, PA 17365 personal property; one-half residue. 2. Steven G. Bowman - 2999 Dickinson Ave. Son 15% BOCO;one-half Camp Hill, PA 17011 personal property; one-half residue. 3. Henry K, Bowman, III - 2227 N. 3rd. st. Grandson $2,000.00 cash Harrisburg, PA 17110 bequest. 4. Einily Bowman Markel - 310 Carla Drive Granddaughter $2,000.00 cash Blawnox, PA 15238 bequest. 5. Aaron B. Dapp - 207 Pine Woods Rd. Grandson $2,000.00 cash Wellsville, PA 17365 bequest. 6. Andrew Bowman - 2999 Dickinson Ave. Grandson $2,000.00 cash Camp Hill, PA 17011 bequest. 7. Adam Bowman - 2999 Dickinson Ave. Grandson $2,000.00 cash Cannp Hill, PA 17011 bequest. 8. Wayne Kennedy Bowman - 16124 Bayham Drive Grandson $2,000.00 cash Clinton, MI 48038 bequest. 9. Darlene (Miller) George - 223 s. Dewey st. Granddaughter $2,000.00 cash Owosso, MI 48867 b~e~t ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 THROUGH 17, AS APPROPRIATE, ON V 500 COVER SHEET II. NON.TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAXIS NOT BEING MADE 1. B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS 1. TOTAL OF PART II. ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV 1500 COVER SHEET $ BOWMAN, ZORA G. FILE NUMBER 21-01-00489 ESTATE OF (If more space Is needed, Insert additional. sheets of the same size)