Vanalco, Inc., a Delaware S Corporation, Richard L. Smith, Tax Matters Person - Page 11




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          on the following floor sections:                                            
               Year           Cell Room No.           Floor Section                   
               1991                6              Tap end                             
               1992                20             Tap end                             
                              10, 12, 14, 18      Center                              
                              16, 22              Tap end and center                  
               1993           8, 10               Tap end                             
                              14, 18              Tap end and center                  
               1994                4              Tap end                             
                              10, 20, 22          Center                              
                                   12             Tap end and center                  
               1995           4, 6, 8, 10         Center                              
                              12, 14, 16                                              
               Thus, by 1995, the brick floors of all the tap end and                 
          center sections were removed and replaced with Fondag cement                
          floors.  Vanalco reported repair expenses of $386,327 and                   
          $408,154 for the cost of the replacements in 1992 and 1993,                 
          respectively.                                                               
          The Ingot Plant Roof                                                        
               Molten metal is tapped into large crucibles and transported            
          by large forklift trucks from the cell rooms to the plant.  In              
          the plant, the molten metal is either poured directly into 900-             
          pound ingot molds and allowed to solidify, or it is placed into             
          furnaces where the metal is alloyed and then cast into either 30-           
          pound ingots or cylindrical billets.  Finally, the finished                 
          metal, whether in ingot or billet form, is prepared for shipment.           







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