Vanalco, Inc., a Delaware S Corporation, Richard L. Smith, Tax Matters Person - Page 12




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               The plant is an independent structure that has a different             
          type of roof than the adjoining buildings.  Because of the                  
          potential of fire from a molten metal explosion, the plant's                
          122,567-square-foot roof must be made of fire-resistant material.           
          The roof must also be without leaks as rain water hitting the               
          molten aluminum could cause an explosion that would spray molten            
          metal over the plant.  Thus, a leak in the plant roof could                 
          result in damage to plant equipment and would present a                     
          significant safety hazard to plant employees.                               
               During 1989 and 1990, Vanalco removed and replaced 1,414               
          square feet of roof decking and 26,954 square feet of roofing               
          material.  In 1991, Vanalco removed and replaced 23,171 square              
          feet of roof decking and roofing material.  In 1992, Vanalco                
          removed and replaced 12,927 square feet of roof decking and                 
          roofing material.  In 1994, Vanalco removed and replaced 15,145             
          square feet of roof decking and roofing material.7  Thus, during            
          the period 1989 through 1994, Vanalco removed and replaced 42,514           
          square feet of roof decking and 78,197 square feet of roofing               
          material.                                                                   




               7 Thus, during 1989 and 1990, Vanalco replaced 1.15 percent            
          of the roof decking and 21.99 percent of the roofing material.              
          In 1991, Vanalco replaced 18.90 percent of the decking and                  
          roofing material; in 1992, it replaced 10.55 percent; and, in               
          1994, it replaced 12.36 percent.                                            




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