Norwest Corporation and Subsidiaries - Page 18

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          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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