Seggerman Farms, Incorporated - Page 5




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          Asset Description          Adjusted Basis     Fair Market Value             
          Depreciable property          $27,457             $71,880                   
          Inventory                         -0-              60,490                   
          Fertilizer & lime                 -0-                 680                   
          Hay, straw, & oats                -0-               3,670                   
          Market livestock                  -0-               3,750                   
          Cattle feed                       -0-                 450                   
          Gas & diesel                      -0-                 700                   
          Miscellaneous tools               -0-               1,500                   
          Cash                             3,060              3,060                   
          Improvements to Craig                                                       
          Seggerman’s house                 -0-                 700                   
          Accounts receivable               -0-                 720                   
          Deficiency payments               -0-               6,980                   
          Deposits                      -0-                1,760                      
          Total                          30,517             156,340                   
          Either the property that was transferred was subject to                     
          liabilities or Seggerman Farms assumed the liabilities from Craig           
          Seggerman in the amount of $121,911 as follows:                             
                                                Amount of                            
                     Creditor                    Liability                            
                     Minonk State Bank            $98,355                             
                     Ford Motor Co.                 5,766                             
                     Ray Seggerman               17,790                               
                     Total                        121,911                             
          The amount of the liabilities that were transferred to Seggerman            
          Farms by Craig Seggerman exceeded the adjusted basis of the                 
          assets that he transferred to Seggerman Farms by $91,394.  The              
          portion of this gain that was attributable to long-term capital             
          gain was $47,227, and the portion that was attributable to                  
          ordinary gain was $44,167.                                                  
               Michael Seggerman transferred the following assets to                  
          Seggerman Farms:                                                            






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Last modified: May 25, 2011