Supplemental Schedule

COMPANY a

Tax I.D. # 99-9999999

For the Year Ended December 31, 2003

Transferor Corporation’s Statement Under Regs. Sec 1.351-3(b)

1.)        Property Transferred - On June 1, 2007, COMPANY A (EIN 99-9999999), transferred the following property to COMPANY B (EIN 88-8888888):

Property from COMPANY (EIN 99-9999999):

Item of Property                            Fair Market Value                         Tax Basis 

Cash                                                    $ 11,671.30                              $11,671.30

Machinery & Equipment                          9,786.21                                  9,786.21

Vehicles                                                   4,358.90                                  4,358.90     

Total Assets                            $25,816.41                              $25,816.21

 Less Liabilities                                      20,220.30                                20,220.30

Total Value of

Property Transferred                   $5596.11                                 $5596.11

            2.)        Stock Issued – The taxpayer, PERSON A, received 1000 shares of $1.00 par                                 value common stock of COMPANY B, with a fair market value of                                     $1.00 per share, in exchange for its interest in the transferred property. 

3.)        Securities Received - None

4.)        Money Transferred - None

5.)        Other Property Received - None

6.)        Liabilities Assumed –  COMPANY B has assumed all of COMPANY A’s liabilities, which aggregate $20,220.30.  The corporate business purpose for COPMANY B’s assumption of these liabilities is that they arose in, and are associated with, the regular operations of the business transferred to it.