Laserfiche WebLink
HEWETT-KIER CONSTRUCTION, INC. • <br /> NOTES TO FINANCIAL STATEMENTS <br /> FOR THE YEAR ENDED DECEMBER 31, 1998 <br /> NOTE 4. PROPERTY AND EQUIPMENT <br /> Property and equipment, which is recorded at cost, consisted of the following: <br /> Estimated <br /> Useful Life <br /> in Years <br /> Equipment 5 $ 291,702 <br /> Automobiles and trucks 3-7 122,594 <br /> Leasehold improvements 7 94.337 <br /> 508,633 <br /> Accumulated depredation 292.183 <br /> 5 216 450 <br /> ® NOTE 5. PENSION AND PROFIT SHARING PLANS <br /> The Company maintains pension and profit sharing plans covering all employees who meet <br /> the eligibility requirements. The contribution formula and current period expense for each <br /> Plan is as follows: <br /> Money Purchase Pension Plan - The Company's annual contribution is 3% of <br /> compensation per eligible employee. The contribution for the year ended December 31, <br /> 1998 amounted to $27,850. <br /> Profit Sharing Plan - Contributions by the Company are at the discretion of its Board of <br /> Directors and were authorized in the amount of $50,000 for the year ended December 31, <br /> 1998. Each participant is required to defer an amount equal to 5% of his compensation. <br /> The deferred compensation for the year ended December 31, 1998 amounted to $37,748. <br /> • <br /> NOTE 6. RELATED PARTY TRANSACTION <br /> The Company rents office facilities on a month-to-month basis from an entity that is owned <br /> by its present and former stockholders. In the opinion of management, the monthly rent is <br /> substantially equivalent to that which would have been obtained between unrelated parties <br /> and revocation of this agreement would not adversely affect operations. The amounts paid <br /> under this arrangement amounted to $31,114 for the year ended December 31, 1998. <br /> 8 <br /> DIN(Lncw • CTnnNr.IN • miISKAT • STEIN & COMPANY <br />