Investment Research Associates - Page 585




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               The FPC Subventure Associates partnership (FPC Subventure)             
          was formed as of January 1, 1981.  The partners of FPC Subventure           
          and their respective interests were:  Lisle, 90 percent; the                
          Everglades Trust (Roger Baskes, trustee), 9 percent; and Burton             
          W. Kanter Revocable Trust (Kanter trustee), 1 percent.  On                  
          January 1, 1981, Kanter transferred his 8-percent interest in               
          Four Ponds to FPC Subventure, effectively transferring 90 percent           
          of his interest in Four Ponds to Lisle in exchange for a                    
          receivable of $2,880 from Lisle.                                            
               A joint venture called One River Associates (One River) was            
          formed as of November 16, 1981.  Schaffel and Torcivia were the             
          general partners.  Kanter held an 8-percent interest in One                 
          River.  On January 1, 1982, Kanter transferred his interest in              
          One River to FPC Subventure in exchange for a $2,000 receivable             
          from FPC Subventure.  Beginning in 1982, the 8-percent interest             
          in One River held by Kanter was treated as held by FPC                      
          Subventure, and 90 percent of the income, loss, and distributions           
          were allocated to Lisle.                                                    
               On April 5, 1982, Four Ponds distributed $400,000 to Kanter.           
          Kanter treated the distribution as a distribution to FPC                    
          Subventure.  FPC Subventure retained $5,000 and distributed                 
          $395,000 to the partners, 90 percent to Lisle and 10 percent to             
          the Kanter trusts.  An additional $33,600 was distributed by Four           
          Ponds to FPC Subventure through Kanter during 1982.  During 1982            






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