Investment Engineers, LTD., Robert S. McGlamery, A Partner Other than the Tax Matters Partner - Page 10

                                                 - 10 -                                                   
                        A.  1983 (& before) Commitments -  $26,000                                        
                        B.  1983, etc. receipts -          $10,333                                        
                        C.  1983, etc. still owed -        $12,667                                        
                        D.  1984  Commitments -            $20,500                                        
                        E.  1984  Receipts -                $4,000                                        
                        F.  1984  still owed -             $16,500                                        
                  Note:  Principals will finish for above cash, or unsold                                 
                  Partnership equity, or a combination thereof.                                           
                        G.  Raisable funds - 1985          $48,647                                        
                        H.  1984 Expenditures                                                             
                        1.  Greg Knox - Lab Research    $8,733 (+1890)                                    
                        2.  Wayne Brickey - Lab Research - $5,600                                         
                        3.  Mike Jensen  $7,374  [illegible]                                              
                       4.  Robert L. Montelius $6,700  programming                                       
                               for John                                                                   
                  On U.S. Partnership Returns of Income, Forms 1065, filed for                            
            1982, 1983, and 1984, the partnership reported as “Cost of goods                              
            sold and/or operations” the amounts of $540,500, $218,000, and                                
            $123,000, respectively.  The amounts were claimed to be “cost of                              
            labor” on the partnership returns.  The balance sheets on the                                 
            returns reflected the following balances:                                                     
                                                 1982        1983        1984                             
            Cash                                 $  5,057    $ 14,912    $  1,426                         
            Other current assets--                                                                        
            notes receivable                     85,860      19,723      14,500                           
            Other assets--                                                                                
            notes receivable                     454,583     175,833     102,500                          
            Total assets                         $545,500    $210,468    $118,426                         
            Accounts payable                     $540,500    $205,468    $113,426                         
            Partners’ capital accounts       5,000       5,000       5,000                                
            Total liabilities and                                                                         
            capital                              $545,500    $210,468    $118,426                         
                                                                                                         








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