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Item H T Estimated income tax results as of September 1, 1952 if the offer of the Las Vegas Valley Water District dated August 25, 1952 is accepted, to cover the purchase of the water production and distribution facili­ties of the LA&SLRR Co. and LVL&W Co., respectively, at Las Vegas, Nev. Description LA&SLRR Co. Water Production Facilities LVL&W Co. Water Distribution Facilitie s (4) Total 1 Estimated cost basis for the pro­perty as of August 31» 1952 2 Amount charged to the investment ac­count for 507 acres of water-bearing lands as of August 31» 1952 3 Total (l plus 2) 4 Amount of depreciation and amortiza­tion on the water facilities (ex­cluding la nd)as of A ugust 31, 1952 5 Estimated depreciated value of the water facilities as of September 1, 1952 (3 minus 4) $840,093.27 $1,021,194.64 $1,861,287.91 14,107.13 14,107.13 $854,200.40 $1,021,194.64 $1,875,395.04 292,264.25 214,219.^5 546,483.28 $561,936.15 $766,975.61 $1,328,911.76 6. Total amount of the offer $2,500,000.00 (a) Book value of LVL&W Co. material and supplies as of Sept. 1 ,1 9 5 2 , included in the total, offer 29,902.90 (b) Amount of the offer applying to the water facilities (6 minus 6(a)) 7. Excess of that portion of the offer applying to the water facilities over the depreciated value thereof at Sept.l,1952(6(b ) minus 5) 8 Capital Cains Tax (26^ x 7) $2,470,097.10 $1,141 1/ $ 296 ,185.34 ,708.19 1/ This figure is preliminary and is subject to adjustment in case the March 1, 1913 value of the properties is greater than cost. It is also subject to further adjustment as the cost of subsequent im­provements is added to the amounts shown in item 1 and the amount of subsequent depreciation is added to the amount shown in item 4. General Auditor 's Office, Omaha, Nebr., Oct. 21, 1952