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fcv. H IB General and admini s tap*t ive expense* used in the summary reflect tbs following! Incurred at L,V, Allocated 1049 Recorded Adjusted $25,270 $25,600 * 0,046 $25,270 $34,646 1960 Estimated $26,600 9,100 $56,700 Further analysis of these figures sill be available with additional reclassification for purpose of the exhibit. Depredation expense le predicated cm the lives and rates currently in use. In ay opinion such rates could be increased. Taxes, other than income, for 1950 reflect *? income taxes have been eom pitted ae if the LVL&weo. as wsU as the LAA&LBHCo. filed separate tax returns* However, the two have been considered as one, insofar as the amount of the taxable net income is involved, 1* a* the olasslfieation for corporation* in excess of $66,000 annual net Income has been used, % so doing, it makes no difference which of the two corporations are treated separately, es on page 2, cm if the operations are merged, This would appear proper, as s difference in net earnings should not be permitted for rote purpoeos, merely by the devise of the as­sumption as to corporate identity where the physical properties are as one and under common , The Vth&HCo. and the LAaaURRCe, are entitled to be treated as a asperate corporation for income tax purposes* The customers of the lVL</WCo, should not be burdened, nor should they profit through sny consolidated tax return of the holding company, 1* e.