V.R. DeAngelis M.D.P.C. & R.T. Domingo M.D.P.C., V. R. DeAngelis M.D.P.C., Tax Matters Partner, et al. - Page 35




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               C.  Dr. Domingo Policy                                                 
               The December 28, 1993 and 1994, premiums of $53,093.13 on              
          the policy written on the single life of Dr. Domingo (Dr. Domingo           
          policy) were paid timely, and PUAR was purchased with additional            
          premiums of $52,656.87 in 1993 and $51,281.87 in 1994.  In 1996,            
          the premium due on December 28, 1995, was paid timely with a                
          dividend withdrawal of $10,358.01 and a withdrawal of $42,735.12            
          from the PUAR.  In 1997, the premium due on December 28, 1996,              
          was paid timely with a dividend withdrawal of $10,416.38 and a              
          withdrawal of $42,676.75 from the PUAR.  The premium due on                 
          December 28, 1997, was not paid timely, and the policy lapsed for           
          nonpayment of the premium.  MetLife continued the policy as                 
          nonparticipating paid-up term insurance with a face value of                
          $1,377,206 through December 1, 2000, at which time it was set to            
          be depleted of its cash value and thus to terminate without                 
          value.                                                                      
               D.  Domingos Survivor Whole Life Policy                                
               The December 28, 1993 and 1994, premiums of $77,845 on the             
          Domingos survivor whole life policy were paid timely, and PUAR              
          was purchased in each year with additional premiums of $42,155.             
          In 1996, the premium due on December 28, 1995, was paid timely              
          with a dividend withdrawal of $8,960 and a withdrawal of $68,885            
          from the PUAR.  In 1997, the premium due on December 28, 1996,              
          was paid timely with a dividend withdrawal of $9,616, a                     







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