Jane Crocker, F.K.A. Jane C. Jacobs, et al. - Page 5

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          building to house his antiques business.  He looked at several              
          buildings and eventually narrowed his choices to two properties,            
          the Redwood City Fox Theater Building (the Redwood City Fox or              
          the property) in Redwood City, California, and the Stanford                 
          Theater in Palo Alto, California.                                           
               In May 1981, Jacobs purchased the Redwood City Fox. He also            
          purchased personal property associated with the theater.  He                
          chose the Redwood City Fox over the Stanford Theater because the            
          Redwood City Fox was in much better condition physically than the           
          Stanford Theater.  Additionally, the Redwood City Fox building              
          included commercial space, both retail and office, adjacent to              
          the theater, which Jacobs wanted to utilize for his antiques                
          business.  The purchase price for the Redwood City Fox and                  
          associated personal property was $1,000,000,4 allocated $912,556            
          to the theater and commercial space and $87,444 to the personal             
          property.5                                                                  

               4 Jacobs believed he purchased the Redwood City Fox for a              
          good price because the prior owners "didn't have the money or the           
          desire or the knowledge * * * to fix it up, and they just wanted            
          * * * get rid of it."  Jacobs considered the May 1981 sale of the           
          Redwood City Fox to be a "distress sale".                                   
               5 There is conflicting evidence in the record concerning the           
          purchase price of the Redwood City Fox and the associated                   
          personal property.  Jacobs testified he paid "somewhere around              
          $1,080,000."  An appraisal of the Redwood City Fox prepared by              
          David Ingram Jr. and William J. Ewing at Jacob's request and                
          dated April 1987 indicates that Jacobs paid $1,090,344 to acquire           
          the property, allocated $399,146 to the land, $610,783 to the               
          building, and $80,415 to the equipment.  The Ingram/Ewing                   
          appraisal report also states that Jacobs was the source of this             
                                                             (continued...)           




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