PK Ventures, Inc. and Subsidiaries, et al. - Page 115

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          interest payments made and/or imputed by PKVI LP to PK Ventures,            
          TBPC, or TPTC on its Form 1065 for 1987.                                    
               No direct references were made and no explanations were                
          provided in PK Ventures, TBPC, or TPTC’s financial statements for           
          the year ended December 31, 1987, as to the amounts that                    
          PK Ventures, TBPC, and TPTC transferred to PKVI LP during that              
          year.                                                                       
               No direct references were made and no explanations were                
          provided in PKV&S’s consolidated income tax return for 1987 as to           
          the amounts that PK Ventures, TBPC, and TPTC transferred to                 
          PKVI LP during that year.  There were no amounts separately                 
          identified as interest payments received and/or imputed by                  
          PK Ventures, TBPC, or TPTC from PKVI LP on PKV&S’s consolidated             
          income tax return for 1987.                                                 
                         c.  1988                                                     
               Note 4 to PKVI LP’s audited financial statements for the               
          year ended December 31, 1988, stated, in pertinent part:  “At               
          December 31, 1988, the Partnership owed $20,580 to P.K. Ventures,           
          Inc. and $105,978 to affiliated entities which are respectively             
          owned by the Partnerships’ general partners.”  On the Statement             
          of Financial Condition included in PKVI LP’s audited financial              
          statements for the year ended December 31, 1988, $126,558 “Due to           
          affiliated company” was listed as a current liability.                      







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