ITEM 4. SUBMISSION OF ITEMS TO A VOTE OF SECURITY HOLDERS
There were no matters submitted to a vote of security holders in 2004.
PART II
ITEM 5.
ITEM 5. MARKET FOR THE PARTNERSHIP’S UNITS OF LIMITED PARTNERSHIP INTEREST AND RELATED SECURITY HOLDER MATTERS
There is no established public trading market for the Units and it is not anticipated that any will develop in the future. The Partnership commenced an offering to the public on June 8, 1988 of 9,650 units of limited partnership interests. The offering of $9,650,000 was fully subscribed and terminated on June 24, 1988. As of December 31, 2004, there were 472 limited partners in the Partnership.
ITEM 6.
ITEM 6. SELECTED FINANCIAL DATA
SELECTED QUARTERLY FINANCIAL DATA
* In the real estate industry, costs of sales are netted in the gain on sale of land and are included in operating revenues; therefore, there is no breakdown for gross profit.
ITEM 7.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Background
The Partnership was formed to acquire and realize appreciation in the Property by holding it for investment and eventual sale. However, there can be no assurance that the Partnership’s objectives will be realized.
Results of Operations
The Partnership had no operations from the date of its formation on December 14, 1987 until June 24, 1988 when it acquired the first Property and sold 3,165 units of limited partnership interest. During 1988 the Partnership acquired three additional Properties and sold 6,485 additional Units of limited partnership interests.
In 1988 the Partnership purchased 579 acres of unimproved land at three locations. The status of these Properties at December 31, 2004 is as follows:
2004 Compared to 2003
During 2004, the Partnership sold approximately 1.88 acres of its Rutherford County, Tennessee Property for a sales price of $995,000 and recognized a gain of $679,646. As part of the contract the Partnership agreed to give the purchaser a $30,000 underground storm detention allowance and a $20,000 landscaping allowance. The storm detention allowance and landscaping allowance were both credited to the Purchaser at closing. The Partnership also agreed to pay for site preparation for the land, which included grading, water and sewer extension and paving. The cost to the Partnership was $137,954. During 2003, the Partnership had no sales of Partnership Property. Revenue in 2004 also consisted of interest income of $1,145 as compared to $1,983 in 2003. The interest was lower due to a lower cash reserve. The Partnership made cash distributions of $60 per unit to the Limited Partners in 2004. There were no cash distributions to the Limited Partners in 2003.
Expenses during 2004 were $99,651 consisting of general and administrative expense of $54,984, franchise and excise taxes of $35,842, real estate taxes of $8,518 and insurance of $307. The general and administrative expenses included $21,152 in accounting fees, which represent an increase of $4,446 over 2003. This increase is due to new auditing procedures required by the Public Company Accounting Oversight Board. The general and administrative expenses also included $6,528 in legal fees, which represent an increase of $5,681 over 2003. The increase is due to legal fees related to the sale of land mentioned above. The franchise and excise taxes were $33,983 higher than in 2003, when the Partnership paid $1,859 in franchise and excise taxes. The increase in taxes is related to the gain on the sale of land in 2004. The real estate taxes in 2004 were $6,905 higher than in 2003, when the Partnership paid $1,613 in real estate taxes. The increase in 2004 was due to the reclassification of one parcel of land from agricultural to commercial, which resulted in a higher tax rate. The insurance in 2004 was $77 higher that in 2003, when the Partnership paid $230 for insurance
2003 Compared to 2002
During 2003, the Partnership had no sales of Partnership Property as compared to 2002, when the Partnership sold approximately one half acre in Rutherford County, Tennessee for a gain of $97,794. Revenue in 2003 consisted of interest earned of $1,983 compared to $2,521 in 2002. The interest was lower due to a lower cash reserve. There were no cash distributions to the Limited Partners in 2003 or 2002.
Expenses during 2003 were $50,414 consisting of general and administrative expenses of $46,712, franchise and excise taxes of $1,859, real estate taxes of $1,613 and insurance of $230. The general and administrative expenses included $17,553 in accounting and legal fees, which represents a decrease of $4,988 from 2002. In 2002 the Partnership required additional legal assistance related to a quitclaim deed for right-of-way. The general and administrative expenses for 2003 also included $26,920 in professional fees compared to $3,684 in 2002. The increase was due to fees paid to consultants to develop a marketing and grading plan to subdivide the remaining property in Rutherford County, Tennessee into 14 sites of one to two acre sites. The Partnership has no current plans to complete this work. There were no such fees in 2002. The franchise and excise taxes were $2,377 lower than in 2002, when the Partnership paid $4,236 related to the gains on the sale of land. The real estate taxes in 2003 were $360 higher than in 2002, when the Partnership paid $1,253 in real estate taxes, which included $1,167 in greenbelt rollback taxes that were paid in relation to the Rutherford County land sale. The increase in 2003 was due to the reclassification of one parcel of land from agricultural to commercial, which resulted in a higher tax rate.
Inflation did not have a material impact on operations during 2004, 2003 and 2002.
Liquidity and Capital Resources
Cash generated by operating activities varies from year to year based on the level of land sale activity. The Partnership had cash reserves, net of accounts payable, of $12,637 at December 31, 2004. The General Partner believes that the Partnership has sufficient cash reserves to cover normal partnership expenses through the liquidation mode. However, if additional expenses are incurred or should the Partnership decide to construct infrastructure improvements to enhance the marketability of the Property, the reserves may be inadequate to cover the Partnership’s operating expenses. If the reserves are exhausted, the Partnership may have to dispose of some of the Property or incur indebtedness on unfavorable terms.
Controls and Procedures
(a) Within the ninety day period prior to the date of this report, we carried out an elevation under the supervision and with the participation of our management, including our principal executive officer and our principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934). Based upon that evaluation, our management, including our principal executive officer and our principal financial officer, concluded that the design and operation of these disclosure controls and procedures were effective to timely alert them to any material information relating to the Partnership that must be included in our periodic SEC filings.
(b) There have been no significant changes in our internal controls or in other factors that could significantly affect internal controls subsequent to the date we carried out this evaluation.
Critical Accounting Policies
The Partnership’s financial statements are presented in conformity with accounting principles generally accepted in the United States of America. The Partnership was scheduled to terminate on December 31, 2000 and is continuing to operate in liquidation mode. No adjustments are necessary to present the Partnership’s financial statements on the liquidation basis of accounting. Land is carried at the lower of cost or fair value, less estimated cost to sell. Sales of land are recognized upon the closing of an enforceable sales contract and the Partnership’s execution of its obligations under the contract.
ITEM 8.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The Partnership’s financial statements for the years ended December 31, 2004, 2003 and 2002 together with the report of the Partnership’s independent auditors, Williams Benator & Libby, LLP, are included in this Form 10-K.
ITEM 9.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
Not Applicable.
PART III
ITEM 10.
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE PARTNERSHIP
The Partnership does not have any directors or officers. The General Partner manages and controls the affairs of the Partnership and has responsibility for all aspects of the Partnership’s operations. The current members and executive officers and directors of the General Partner are identified and described below.
The General Partner is a Tennessee limited liability company whose members are Richard W. Sorenson, who owns a 50% interest in the General Partner and has a 51% voting right and Southeast Venture LLC, a Tennessee limited liability company, which owns 50% and has a 49% voting right.
Mr. Sorenson, age 79, has over 40 years experience in several real estate disciplines, including land acquisition and development, development of office buildings, shopping centers, warehouses and medical facilities. All of these activities occurred in the southeastern United States.
Mr. Sorenson was President of Phoenix Investment Company (“Phoenix”), a publicly owned, Atlanta based real estate development and investment firm from 1965 to 1970. Concurrent with his employment at Phoenix, he was President of First Atlanta Realty Fund, a publicly owned real estate investment trust. During his tenure with the trust, he served as a Trustee of the National Association of Real Estate Investment Trusts.
Following his departure from Phoenix in 1970, Mr. Sorenson became Vice President of Cousins Properties in Atlanta, where he was responsible for development of office buildings, shopping centers and apartments until 1971. Until forming Southeast Venture Companies (“SV”) in 1979, Mr. Sorenson was an independent real estate developer.
Mr. Sorenson was co-founder of SV in 1979. In 1992, substantially all of the assets of SV were sold to Southeast Venture Corporation.
Mr. Sorenson is a graduate of the Northwestern University Business School with a major in real estate.
The other member of the General Partner is Southeast Venture LLC (“SVLLC”). The officers and key employees of SVLLC include the following:
Paul J. Plummer, age 55. Mr. Plummer is a registered architect and serves as director of architectural services for SVLLC. Mr. Plummer is responsible for facility programming, planning, master planning, facility assessment and design. Before joining SVLLC in 1986, Mr. Plummer served as a partner and director of design for the Nashville-based architecture and engineering firm of Gresham, Smith and Partners. In that capacity he was responsible for the design and planning of over 15 major projects throughout the United States and Saudi Arabia. Mr. Plummer earned his bachelor of architecture degree from the University of Kentucky and is a member of the American Institute of Architects.
Wood S. Caldwell, age 51. Mr. Caldwell is responsible for all site development activities on behalf of commercial and health care clients of SVLLC, including managing all design consultants, permitting, scheduling, budgeting and construction management. He contributes to SVLLC’s development team in the areas of land planning,
zoning, permitting, engineering and construction. Before joining SVC in 1985, Mr. Caldwell served as a professional engineer for Gresham, Smith and Partners. As the prime site design engineer for Gresham, Smith and Partners, Mr. Caldwell produced and coordinated site development plans for over 50 separate medical facilities in over 40 different communities throughout the southeast. Mr. Caldwell earned his bachelor of engineering degree from the Vanderbilt University School of Engineering.
Axson E. West, age 50. Mr. West serves as vice president of brokerage services for SVLLC, specializing in office and industrial leasing, improved property sales and land disposition for several commercial and residential projects. Mr. West has sold real estate and real estate securities since 1980 and, since joining SVC in 1988, he has been responsible for the disposition of land encompassing industrial, office and retail developments. He received his Bachelor of Arts degree from Vanderbilt University and is a Certified Commercial Investment Member, a designation of the Commercial Investment Real Estate Institute.
Cameron W. Sorenson, age 43. Mr. Sorenson serves as director of vertical development for SVLLC. He is primarily responsible for providing development and project management for the clients of SVLLC. Prior to assuming these responsibilities, Mr. Sorenson was project director for two large-scale land development ventures for SVLLC. Prior to joining SVC in 1987, Mr. Sorenson was with Trust Company Bank in Atlanta, as an officer in the National Division, managing a credit portfolio in excess of $150 million. He received his Bachelor of Science degree in finance from the MacIntyre School of Business at the University of Virginia. Cameron Sorenson is the son of Richard W. Sorenson, the individual majority member of the General Partner.
Randy W. Parham, age 49. Mr. Parham is the President of SVLLC. He is primarily responsible for property management, park and association management and also specializes in real estate development and brokerage. Mr. Parham is a licensed real estate broker and architect. Prior to joining SVLLC in 1998, Mr. Parham was a project manager with Gresham, Smith and Partners from 1978 to 1983 and was responsible for overall project management of project team and project financial management. Following his departure from Gresham, Smith and Partners, Mr. Parham joined Metro Center Properties, Inc., an 850 acre mixed-use development in Nashville, Tennessee. He was Vice-President and was responsible for initiation and development of new projects, land sales and lease negotiations. In 1991 he purchased the assets of Metro Center Properties and formed Metro Center Management, Inc. where he served as President through 1997.
During the fiscal years ended December 31, 2004, 2003 and 2002, the Partnership did not pay compensation to any officers of the General Partner. No management fees were paid during 2004, 2003 or 2002 since the Partnership was operating in the liquidation mode. See Item 13 of this report, “Certain Relationships and Related Transactions”.
ITEM 12.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
As of December 31, 2004 no person or “group” (as that term is used in Section 13(d) (3) of the Securities Exchange Act of 1934) was known to the Partnership to beneficially own more than 5% of the Units of the Partnership.
Security Ownership of Management
No individual member, or director or officer of a member, of the General Partner nor such directors or officers as a group, owns any of the Partnership’s outstanding securities. The General Partner owns a general partnership interest which entitles it to receive 30% of cash distributions after the Limited Partners have received cumulative distributions equal to a 10% non-compounded Cumulative Annual Return on their Adjusted Capital Contribution plus a return of their Capital Contributions as those terms are defined in the Partnership Agreement. The General Partner will share in taxable income to reflect cash distributions or, to the extent there are losses, 1% of such losses.
Changes in Control
There are no arrangements known to the Partnership that would at any subsequent date result in a change in control of the Partnership.
ITEM 13.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
From 1988 through 1996, the Partnership paid $18,753 annually as an administration fee to the former general partner. This fee was computed as one quarter of one percent of the base cost of the land. The cumulative amount of such fee could not exceed $150,021 and, as of December 31, 1996, fees charged since inception amounted t $150,021. As of November 5, 1997, the Limited Partners voted and agreed to pay the new General Partner, Southern Management Group, LLC, a fee of $2,915 for the period November 5, 1997 through December 31, 1997 and annual fees of $19,000 from January 1, 1998 through December 31, 2000. Any fee payments would cease at a date when the Partnership was liquidated.
The General Partner will also receive 30% of cash distributions after the Limited Partners have received (i) cumulative distributions equal to a 10% Cumulative Annual Return on their Adjusted Capital Contributions plus (ii) a return of their Capital Contributions (as those terms are defined in the Partnership Agreement). During 2004, 2003 and 2002, the General Partner received no cash distributions.
At the special meeting of Limited Partners held on November 5, 1997, the Partnership Agreement was amended to provide that total compensation paid to all persons, including the General Partner, for the sale of the Partnership’s property is limited to a competitive real estate commission or disposition fee not to exceed 10% of the contract price of the sale of the property. Any such real estate commission or disposition fee paid to the General Partner will reduce any distribution to which it would otherwise be entitled under the amended Partnership Agreement. In addition, the Partnership Agreement was amended to provide that the General Partner may act as the exclusive agent for the sale of the Property. During 2004 and 2002, the Partnership paid real estate sales commissions of $69,650 and $7,867, respectively, to the General Partner or its affiliates. There were no sales of land during the year ended December 31, 2003.
ITEM 14.
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Fees billed by the principal auditors during the years ended December 31, 2004 and 2003 consisted of the following:
PART IV
ITEM 15.
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a)
Page
Statements of Operations
Statements of Partners’ Equity
Statements of Cash Flow
Notes to Financial Statements
Schedules have been omitted because they are inappropriate, not required, or the information is included elsewhere in the financial statements or notes thereto.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the Registrant and in the capacities and on the date indicated.
SOUTHEAST ACQUISITIONS II, L.P.
(A Limited Partnership Operating in Liquidation Mode)
AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2004
with
INDEPENDENT AUDITORS’ REPORT
Audited Financial Statements
SOUTHEAST ACQUISITIONS II, L.P.
(A Limited Partnership Operating in Liquidation Mode)
December 31, 2004
Independent Auditors’ Report
Balance Sheets
Statements of Operations
Statements of Partners’ Equity
Statements of Cash Flows
Notes to Financial Statements
INDEPENDENT AUDITORS’ REPORT
Partners
Southeast Acquisitions II, L.P.
Nashville, Tennessee
We have audited the accompanying balance sheets of Southeast Acquisitions II, L.P. (a limited partnership operating in liquidation mode) as of December 31, 2004 and 2003, and the related statements of operations, partners’ equity, and cash flows for each of the years in the three-year period ended December 31, 2004. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Southeast Acquisitions II, L.P. (a limited partnership operating in liquidation mode) as of December 31, 2004 and 2003, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2004 in conformity with accounting principles generally accepted in the United States of America.
As more fully described in Note A, according to the terms of the partnership agreement, the Partnership was scheduled to terminate on December 31, 2000 and is continuing to operate in liquidation mode.
Atlanta, Georgia
January 11, 2005
1040 Crown Pointe Parkway, NE | Suite 400 | Atlanta, Ga 30338
t) 770.512.0500 | f) 770.512.0200 | www.wblcpa.com
Member of American Institute of Certified Public Accountants and Russell Bedford International
BALANCE SHEETS
SOUTHEAST ACQUISITIONS II, L.P.
(A Limited Partnership Operating in Liquidation Mode)
See notes to financial statements.
STATEMENTS OF OPERATIONS
SOUTHEAST ACQUISITIONS II, L.P.
(A Limited Partnership Operating in Liquidation Mode)
See notes to financial statements.
STATEMENTS OF PARTNERS’ EQUITY
SOUTHEAST ACQUISITIONS II, L.P.
(A Limited Partnership Operating in Liquidation Mode)
See notes to financial statements.
STATEMENTS OF CASH FLOWS
SOUTHEAST ACQUISITIONS II, L.P.
(A Limited Partnership Operating in Liquidation Mode)
See notes to financial statements.
NOTES TO FINANCIAL STATEMENTS
SOUTHEAST ACQUISITIONS II, L.P.
(A Limited Partnership Operating in Liquidation Mode)
December 31, 2004
NOTE A-DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
Southeast Acquisitions II, L.P. (a limited partnership operating in liquidation mode) (“the Partnership”) is a Delaware limited partnership that was formed to acquire and sell undeveloped land. The Partnership was formed during December 1987 and received equity contributions totaling $9,650,000 through the sale of 9,650 limited partnership units during 1988. The Partnership was originally scheduled to terminate on December 31, 1998. However, during November 1997, concurrent with the replacement of the previous general partner, the term of the Partnership was extended to December 31, 2000. The partnership is currently operating in liquidation mode until all of the Partnership’s land is sold. No adjustments are necessary to present the financial statements on the liquidation basis.
During 1988, the Partnership purchased undeveloped land to be marketed for sale as follows: approximately 135 acres near Nashville, Tennessee, approximately 91 acres in Greenville, South Carolina, and approximately 353 acres near Atlanta, Georgia. This land was purchased from an affiliate of the previous general partner. At December 31, 2004, the remaining land consisted of approximately 43 acres of the Tennessee land.
The following accounting policies are presented to assist the reader in understanding the Partnership’s financial statements:
Basis of Accounting: The Partnership maintains its accounting records on the accrual basis of accounting. Sales of land are recognized upon the closing of an enforceable sales contract and the Partnership’s execution of its obligations under the contract.
Land Held for Sale: Land is carried at the lower of cost or fair value, less estimated cost to sell. The value of the land is reviewed for impairment annually by considering recent sales, contract negotiations in progress, and sale activity in the land’s geographic area. The Partnership’s land is carried net of the remaining portion of an original write-down of $3,467,829 that was recognized during 1991.
Income Taxes: Federal and state income taxes have not been provided for in the financial statements. Under existing law, the Partnership is not treated as a taxable entity. Rather, each partner must include his allocated share of Partnership income, loss, gain, deduction, and credit in his individual income tax return. The write-down of the land’s carrying value that has been recorded for financial statement purposes will not be recognized for income tax purposes until the land is sold. At December 31, 2004 and 2003, the remaining portion of the 1991 write-down that had not been recognized for income tax purposes totaled $1,115,285 and $1,163,714, respectively.
NOTES TO FINANCIAL STATEMENTS-Continued
SOUTHEAST ACQUISITIONS II, L.P.
(A Limited Partnership Operating in Liquidation Mode)
NOTE A-DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES-Continued
Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash Equivalents: For purposes of reporting cash flows, the Partnership considers all demand deposits and highly liquid investments purchased with an original maturity of three months or less which can be readily converted to cash on demand, without penalty, to be cash equivalents. At December 31, 2004, cash and cash equivalents included cash on deposit in excess of federally insured limits of approximately $5,000.
NOTE B-RELATED PARTY TRANSACTIONS
During the years ended December 31, 2004, 2003 and 2002, sales commissions totaling $69,650, $-0-, and $7,867, respectively, were paid to the general partner or its affiliates related to sales of land.
The Partnership agreement provides for reimbursement of expenses incurred by the general partner related to the administration and operation of the Partnership. During the years ended December 31, 2004, 2003 and 2002, reimbursements to the general partner’s members and related companies totaled $2,170, $2,175, and $1,788, respectively. Accounts payable to the general partner’s members totaled $387 and $1,830 at December 31, 2004 and 2003, respectively.
The Partnership agreement provided for the payment of management fees to the general partner. However, no management fees were paid during the years ended December 31, 2004, 2003 and 2002 since the Partnership was operating in liquidation mode.
NOTE C-PARTNERS’ EQUITY
In accordance with the partnership agreement (as amended in November 1997), cash distributions and Partnership profits and losses are to be allocated as follows:
NOTES TO FINANCIAL STATEMENTS-Continued
SOUTHEAST ACQUISITIONS II, L.P.
(A Limited Partnership Operating in Liquidation Mode)
NOTE C-PARTNERS’ EQUITY-Continued
(b) Profits and losses are to be allocated as provided in the partnership agreement. Generally, profits will be allocated to the partners to reflect cash distributions or to offset negative balances in the partners’ capital accounts, but at least 1% of profits will be allocated to the general partner. Losses will generally be allocated 99% to the limited partners, in proportion to their units, and 1% to the general partner, or to reduce any positive account balances in the partners’ capital accounts.
Upon Partnership dissolution and termination, the general partner is required to contribute to the capital of the Partnership the lesser of any negative amount of its capital account, as defined, or 1.01% of the capital contributions made by the limited partners. Any amount so contributed shall be distributed to the limited partners in proportion to their positive capital account balances.
During the year ended December 31, 2004, the Partnership paid distributions against the limited partners’ cumulative annual return in accordance with the partnership agreement of $579,000, or $60 per unit. No distributions were paid during the years ended December 31, 2003 and 2002.
Cumulative distributions applied against the limited partners’ cumulative annual return through December 31, 2004 totaled $13,436,281, or $1,392 per unit.
Total compensation paid to all persons, including the general partner, upon the sale of the Partnership’s property is limited to a competitive real estate commission or disposition fee not to exceed 10% of the contract price. Any such commission or disposition fee paid to the general partner would reduce any distribution which it would otherwise be entitled to pursuant to the partnership agreement. The general partner or an affiliate may be given an exclusive right to sell property for the Partnership.
NOTES TO FINANCIAL STATEMENTS-Continued
SOUTHEAST ACQUISITIONS II, L.P.
(A Limited Partnership Operating in Liquidation Mode)
NOTE D-SUMMARY OF PROPERTY AND ACTIVITY
At December 31, 2004, land consisted of the following:
There were no liens on the land as of December 31, 2004. At December 31, 2004, the aggregate carrying value of the land for income tax purposes was $1,582,387. The difference between the carrying value for financial statement purposes and income tax purposes resulted from a write-down of the property’s carrying value that was recorded for financial statement purposes during 1991 as more fully described in Note A.
Land activity during the years ended December 31, 2002, 2003 and 2004 consisted of the following: