Investment Research Associates - Page 73




                                       - 157 -                                        
                                           Carlco      TMT    BWK, Inc.               
          Investment in Sherwood                                                      
         Opening balance                       –          –         –                 
         Sherwood Associates            $41,400    $41,400     $9,200                 
         Rec. int. Sherwood from IRA           1          1         1                 
         Rec. K-1 activity              (119,116)  (119,116)   (26,470)               
         Paid-in Capital                 (77,715)   (77,715)   (17,269)               
         Rec. int. Sherwood from  IRA           1          1          1               

         d.   1984 Distributions to Carlco, TMT, and BWK, Inc. as                     
         Reflected on the Books of the Corporations                                   
              The transfers of cash to Carlco, TMT, and BWK, Inc., were               
         recorded on the books of the corporations as, respectively,                  
         contributions of capital.  The distribution of the Essex                     
         partnership interest was recorded as paid-in capital of $20,377              
         each to Carlco and TMT and $4,528 to BWK, Inc.  The distribution             
         of the Sherwood partnership interest was recorded as paid-in                 
         capital of $1 each to Carlco, TMT, and BWK, Inc.  Additionally, a            
         receivable of $148 for the preferred shares of each of Carlco,               
         TMT, and BWK, Inc. was treated as paid-in capital of each                    
         corporation. Thus, amounts recorded as additions to capital                  
         during 1984 and total paid-in capital at the close of 1984 for               
         each of the corporations were as follows (balance differences are            
         due to rounding):                                                            
         Item                       Carlco           TMT         BWK, Inc.            
         Cash                     $1,870,535     $1,870,535      $415,674             
         Essex distribution       (39,971)       (39,971)        (8,882)              
         Essex partnership        20,377         20,377          4,528                
         Sherwood partnership     1                    1              1               
         Receivable               148                  148       148                  
         Consent dividend                        105,202                             
         Total 1984 additions     1,851,091      1,956,294       411,470              
         Paid in capital                                                              
         Beginning year            7,398          7,398          7,398                
         End year                 1,858,489      1,963,691       418,868              





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