PK Ventures, Inc. and Subsidiaries, et al. - Page 114

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          other explanations were provided in PK Ventures’ financial                  
          statements for 1986 as to the amounts that it transferred to                
          PKVI LP during that year.                                                   
               No direct references were made and no explanations were                
          provided in PK Ventures’ income tax return for 1986 as to the               
          amounts that it transferred to PKVI LP during that year.  There             
          were no amounts separately identified as interest payments                  
          received and/or imputed by PK Ventures from PKVI LP on                      
          PK Ventures’ income tax return for 1986.                                    
                         b.  1987                                                     
               No direct references were made and no explanations were                
          provided in PKVI LP’s financial statements for 1987 as to the               
          amounts that PKVI LP received from PK Ventures, TBPC, or TPTC               
          during that year.  On the Balance Sheet included in PKVI LP’s               
          audited financial statements for the year ended December 31,                
          1987, $48,300 “Due to affiliated company” was listed as a current           
          liability.                                                                  
               No direct references were made and no explanations were                
          provided in PKVI LP’s Form 1065 for 1987 as to the amounts that             
          PKVI LP received from PK Ventures, TBPC, or TPTC during that                
          year.  On the Schedule L attached to PKVI LP’s Form 1065 for                
          1987, $48,300 was listed under “Other liabilities” as of the end            
          of that year.  There were no amounts separately identified as               







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