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..... <br />Notes to Divisional Balance Sheet; Continued <br />2. Accounting Policies, continued: <br />d. Estimates and Assumptions: The preparation of a balance sheet in conformity with <br />generally accepted accounting principles requires management to make estimates and <br />assumptions that affect the reported amounts of assets and liabilities and disclosure of <br />contingent assets and liabilities at the date of the balance sheet. Actual results could differ <br />from those estimates. <br />3. Land Contract: <br />Long-term debt at December 31, 1998 consists of the following: <br />Land contract, bearing interest at 7.00 percent, payable in semiannual installments <br />of 581,868, payments applied first to interest then to the unpaid principal, with <br />the final payment due March 1, 2021 $1,845,348 <br />Less current portion <br />35,500 <br />$1,809,848 <br />The Division has evaluated the fair value of its debt based on the current interest rate <br />environment and current pricing of debt instruments with comparable term;. The carrying <br />value of this debt is considered to approximate fair value. <br />4. Related Party Transactions: <br />Amounts receivable from Edw. C. Levy Co. and affiliates, net are the result of transactions <br />arising out of the normal conduct of business. <br />4 <br />