Estate of James J. Renier, Deceased, Kent L. Renier and Dubuque Bank & Trust Company, Co-Executors - Page 26

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          average.  Because Mr. Kramer’s approach is consistent with                  
          Renier’s actual income tax liabilities over the base period, we             
          believe it is more accurate.  We therefore adopt his method of              
          using after-tax net income and taking account of the income tax             
          effect of normalizing adjustments at Renier’s historic average              
          rate of 34 percent.                                                         
                           g.  Conclusion                                             
               Based on the foregoing, we conclude that the following                 
          normalizing adjustments should be made to Renier’s reported net             
          income after taxes for the base period:                                     

                        Adjustments to Base Period Net Income                         
                          (negative amounts in parentheses)                           
          Excess related-party compensation                      $228,453             
          Interest generated by Renier’s excess working          (104,584)            
          Depreciation1                                          35,012               
          Property taxes1                                        1,782                
          Automotive expenses1                                   6,650                
          Capital loss1                                          9,219                
          Rental income1                                         (6,000)              
          Total adjustments before tax                           170,532              
          Tax on adjustments (at blended Federal and State       (57,981)             
          rate of 34 percent)                                                         
          Total adjustments after tax                            112,551              
          1 The experts agreed to the normalizing adjustment amounts with             
          respect to depreciation, property taxes, automotive expenses,               
          capital loss, and rental income.                                            

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