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* b.  Further allocation of amounts allocated to repurchased shares to various components of stockholder equity upon formal or constructive retirement.

Item 7.|  |MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS|  | |25|  |

Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The company also provides the following disclosure relating to the useful lives of its depreciable assets

Note: In review of the Board of Director Minutes (GA-3.2), it was noted that the other receivables was an advance to Mr. Lancaster’s secretary. This was reclassed to an employee receivable (AJE# 3). It was also noted that the note carried a 1% interest rate. For the six month period this would be $5,000. Due to the nature of the note and the concern of whether Mr. Lancaster’s secretary will ultimately pay this back, no accrual is made here. It will be noted in the footnotes, however.

| |financial statements related to cash and cash equivalents, receivables, and inventories. | | |

carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions.

You have been asked to write a letter to all the relevant clients asking them to attend an information session regarding the changes that will affect their share portfolio performance.

FAS 123(R) 5 states that an entity should recognize services received in a share based payment transaction when those services are received. 10 states that an entity shall account for compensation cost from share-based payment transactions with employees in accordance with the fair-value-based method. Under the fair-value-based method, the cost of services received from employees in exchange for awards of share-based compensation shall be measured based on the grant-date fair value of the equity instruments issued. A10-A17 discuss the acceptable methods of calculating fair value at the grant date. The grant-date fair value of the Murray options is $6. Following the guidance in Illustration 4(a), Share Options with Cliff Vesting, of FAS 123(R), compensation expense for the years ended December 31, 2006 & 2007 is $200,000 per year (calculation attached hereto).

Note 3 touches on the category of cash and cash equivalents. Some of the cash equivalents are "available for sale securities." These include agency obligations ($20 million), commercial paper ($87 million), corporate debt securities ($78 million), government treasury securities ($606 million) and certificates of deposit ($64 million). In addition, the balance sheet shows $1.1886 billion in cash. There are stated at fair market value, which if it cannot be determined on the open market is estimated. The company values auction rate securities using an internally-developed valuation model. The company also notes that some of the "available for sale" securities are longer-term in

firm’s financing, for example, issuing or repurchasing stock and borrowing or repaying loans. It also

FASB Statement No. 123: Share-Based Payments provides investors and users of financial statements with more complete

* To recognise separately, at the acquisition date, the acquiree’s identifiable assets, liabilities and contingent liabilities.

The company also have a Board of Directors in United Kingdom wherein the directors are elected annually by the Company’s shareholders.

The company also have a Board of Directors in United Kingdom wherein the directors are elected annually by the Company’s shareholders.