Investment Research Associates - Page 57

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          Prudential transactions were paid to or distributed to Carlco,              
          TMT, and BWK, Inc.                                                          
          2.  Flow of the Funds 1977 Through 1983                                     
               The following diagram shows the money paid by the Five to              
          IRA, Zeus, and KWJ Corp. from 1977 through 1983 with respect to             
          the Prudential transactions:                                                
          1977-1983                                                                   
















               Prior to 1984, all payments by the Five in connection with             
          the Prudential transactions were reported on the consolidated               
          returns of IRA.  No tax was paid on this income because, during             
          the years 1978 through 1983, IRA reported substantial net                   
          operating losses.  IRA reported the following consolidated total            
          income, taxable income, and net operating losses for the years              
          1978 through 1983:                                                          

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