Seggerman Farms, Incorporated - Page 4




                                        - 4 -                                         
          Asset Description          Adjusted Basis     Fair Market Value             
          Depreciable property          $53,601             $143,760                  
          Inventory                         -0-              120,980                  
          Fertilizer & lime                 -0-                1,360                  
          Hay, straw, & oats                -0-                7,340                  
          Market livestock                  -0-                7,500                  
          Cattle feed                       -0-                  900                  
          Gas & diesel                      -0-                1,400                  
          Miscellaneous tools               -0-                3,000                  
          Land, building, & grain        10,000              140,180                  
          Cash                             2,600               2,600                  
          Improvements to Craig                                                       
          Seggerman’s house                 -0-                1,400                  
          Accounts receivable               -0-                1,440                  
          Deficiency payments           -0-                 13,960                    
          Total                          66,201              445,820                  
          Either the property that was transferred was subject to                     
          liabilities or Seggerman Farms assumed the liabilities from                 
          Ronald Seggerman in the amount of $402,903 as follows:                      
                                                 Amount of                            
                     Creditor                    Liability                            
                     Minonk State Bank           $259,370                             
                     Ford Motor Co.                11,533                             
                     Federal Land Bank           132,000                              
                     Total                        402,903                             
          The amount of the liabilities that were transferred to Seggerman            
          Farms by Ronald Seggerman exceeded the adjusted basis of the                
          assets that he transferred to Seggerman Farms by $336,702.  The             
          portion of this gain that was attributable to long-term capital             
          gain was $206,751, and the portion attributable to ordinary gain            
          was $129,951.                                                               
               Craig Seggerman transferred the following assets to                    
          Seggerman Farms:                                                            






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Last modified: May 25, 2011