The Kroger Company and Subsidiaries - Page 52

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                                 SUPERX DIVISION - RESPONDENT'S METHOD                                
                                    Time-Allocated                      Difference As                 
                        Time-       Annual Shrinkage    Percent Of                                    
                        Allocated                 Minus Shrinkage     Annual Time-                    
                        Annual      IRS        Based on IRS        Allocated                          
                  Year  Shrinkage     Method      Method             Shrinkage                        
                  1983  $15,665,951   $14,498,732      $1,167,219               7.5%                  
                  1984   20,020,109    18,062,925       1,957,184               9.8%                  
                  1985   23,050,060    22,155,386         894,674               3.9%                  
                  1983-  58,736,119    54,717,043       4,019,076               6.8%                  
                  1985                                                                                

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