PK Ventures, Inc. and Subsidiaries, et al. - Page 146

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                    was applied in 1991 (Schedule E2, line 31H) and                   
                    the balance of $191,316 carried forward.                          
               2.   The amount of $422,629 unapplied net operating                    
                    loss from PK Ventures LP (1990) * * * has been                    
                    carried forward.                                                  
          This statement was signed by the Roses and dated October 14,                
          1992.  In sum, the Roses carried forward losses from PKVI LP                
          totaling $613,945.                                                          
               The Roses attached the following statement to their joint              
          income tax return for 1992:                                                 
               The above mentioned taxpayers have elected to apply                    
               * * * the net operating losses of the following company                
               for the tax period ending 12/31/92:                                    
               1.   The amount of $394,800 of net operating losses                    
               from PK Ventures I Limited Partnership (1992) * * *                    
               have been applied.  The taxpayer has elected to                        
               carryforward the balance of $193,017 of unapplied net                  
               operating losses.                                                      
               2.   The amount of $191,316 of net operating losses                    
               from PK Ventures I Limited Partnership (1989) * * *                    
               have been applied.                                                     
               3.   The amount of $422,629 of net operating losses                    
               from PK Ventures I Limited Partnership (1990) * * *                    
               have been applied.                                                     
          In sum, the Roses carried forward losses from PKVI LP totaling              
          $193,017.                                                                   
               The Roses attached the following statement, in pertinent               
          part, to their joint income tax return for 1993:  “The above                
          mentioned taxpayers have elected to apply * * * the net operating           
          loss carryforward for the tax period ending 12/31/93 for the                







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