-18-
Workmen's compensation insurance is the only coverage available for
such injuries. It is unclear whether damages for injuries to the
employees resulting from exposure to asbestos would be covered by
workmen's compensation insurance. Nevertheless, petitioner was,
and continues to be, at risk with respect to asbestos damage claims
brought by Douglas Street building employees.
Furthermore, by removing the asbestos-containing materials
from the building, petitioner intended to avoid or minimize a
potential increase in its premiums for workmen's compensation
insurance. If asbestos damage claims filed by Douglas Street
building employees were, in fact, covered by workmen's compensation
insurance, the increase in petitioner's premiums could be sizable,
depending on the volume and magnitude of such claims.
I. Tax and Accounting Matters
The total cost of renovating the Douglas Street building was
close to $7 million, comprising nearly $4,998,749 in remodeling
costs and approximately $1.9 million6 in asbestos removal costs.
6 According to a schedule petitioner prepared, entitled
"Norwest Bank Nebraska N.A.--Payments Related to the Asbestos
Abatement", petitioner's costs of removing the asbestos-
containing materials from the Douglas Street building were as
follows:
Year Amount
1987 $ 175,095.00
1988 861,471.30
1989 881,769.77
Total 1,918,336.07
(continued...)
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