DEVON	50%	STOCK OF VARIN C CORP
MARIAN	50%	STOCK OF VARIN C CORP
VARIN INC DISTRIBUTES REAL ESTATE PROPERTY TO DEVON.
FMV	$ 500,000.00
TAX COST BASIS TO VARIN	$ 100,000.00
VARIN INC DISTRIBUTES A PATENT TO MARIAN.
FMV	$ 500,000.00
TAX COST BASIS TO VARIN	$ 25,000.00
VARIN'S TAX RATE	35%	$ 175,000.00
1	DEVON'S TAXABLE INCOME:
MARIAN'S TAXABLE INCOME:
2	DEVON'S TAX COST BASIS:
MARIAN'S TAX COST BASIS:
3	VARIN RECOGNIZED TAX GAIN OF		ON DEVON'S REAL ESTATE.
VARIN RECOGNIZED TAX GAIN OF		ON MARIAN'S PATENT.
4	VARIN TAKES A		ADJUSTMENT FOR E& P ON DEVON'S REAL ESTATE.
VARIN TAKES A		ADJUSTMENT FOR E& P ON MARIAN'S PATENT.