PK Ventures, Inc. and Subsidiaries, et al. - Page 117

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          P.K. Ventures, Inc. and $107,978 to companies affiliated with               
          P.K. Ventures, Inc.”  On the Statement of Financial Condition               
          included in PKVI LP’s audited financial statements for the year             
          ended December 31, 1989, $556,624 “Due to affiliated company” was           
          listed as a liability.                                                      
               No direct references were made and no explanations were                
          provided in PKVI LP’s Form 1065 for 1989 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                
          1989, $556,624 “Due to Affiliated Company” was listed under                 
          “Other current liabilities” as of the end of that year.  There              
          were no amounts separately identified as interest payments made             
          and/or imputed by PKVI LP to PK Ventures, TBPC, or TPTC on its              
          Form 1065 for 1989.                                                         
               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, 1989, as to the amounts that                    
          PK Ventures, TBPC, and TPTC transferred to PKVI LP during that              
          year.                                                                       
               On the Schedule L attached to PKV&S’s consolidated income              
          tax return for 1989, PK Ventures and its subsidiaries reported              
          $556,624 due from PKVI LP under “Other assets” as of the end of             
          that year.  There were no amounts separately identified as                  
          interest payments received and/or imputed by PK Ventures, TBPC,             






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