Estate of H.A. True, Jr. - Page 84




                                       - 167 -                                        
          $41,003,00057 as of January 1, 1993, and $45,297,509 as of June             
          30, 1994.                                                                   
              During the period 1989 through 1993, revenues fluctuated                
          from a low of $23.3 million in 1991 to a high of $31.3 million in           
          1992.  Ordinary income also fluctuated from a high of $2.1                  
          million in 1992 to a loss of $3.6 million in 1991.  The company             
          incurred losses in 2 out of the 5 years being examined.                     
              For the 6 months ending June 30, 1994, revenues decreased               
          from $12.7 million (for 6 months ending June 30, 1993) to $9.3              
          million.  Net losses for the period increased from $842,179 in              
          1993 to $1.9 million in 1994.                                               
              True Ranches had no current liabilities during the analyzed             
          period.  However, net working capital steadily declined from                
          roughly $7 million in 1990 to $4.8 million in 1993.                         
              During the period 1988 through 1994, partners’ capital                  
          contributions exceeded withdrawals by approximately $64.4                   
          million.                                                                    
              Partnership interests in True Ranches have never been traded            
          in public markets.                                                          




               57Originally, the Kimball report computed True Ranches’ net            
          asset value to be $40,863,000 as of Jan. 1, 1993; however,                  
          Mr. Kimball later revised his estimate to $41,003,000, based on             
          clarifying data received from the ranch property appraisers.  On            
          brief, respondent agreed with Mr. Kimball’s original value as of            
          Jan. 1, 1993.  We assume that respondent also adopts Mr.                    
          Kimball’s revised value.                                                    




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