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Investment in Affiliated Partnership
 3 Months Ended
Mar. 31, 2012
Investment in Affiliated Partnership  
Investment in Affiliated Partnership

(3)                   Investment in Affiliated Partnership

 

In prior periods the Company had a 26.32% ownership interest in a realty limited partnership, United Development Company Limited (“UDT”).  The Company had consolidated the financial statements of UDT for prior periods because it determined that UDT was a VIE.  On February 29, 2012, the Company purchased the manufacturing building that it leased from UDT for $1,350,000, which approximates fair market value.  Since this transaction took place among commonly controlled companies, the building was recorded by the Company at UDT’s carrying value.  Subsequently, UDT was dissolved and its assets were distributed.  Thus, in effect, the Company has acquired the remaining 73.68% ownership interest in UDT, eliminating the VIE.  The non-controlling interests’ portion of the excess of the amount paid for the building over UDT’s carrying value, totaling $535,481, has been recorded in stockholders’ equity as a reduction to additional paid-in capital.  The transaction did not impact the consolidated results of operations.

 

Included in the condensed consolidated balance sheet as of December 31, 2011, are the following amounts related to UDT:

 

 

 

31-Dec-2011

 

Cash

 

$

278,475

 

Net property, plant, and equipment

 

651,032

 

Accrued expenses

 

14,400

 

Current and long-term debt

 

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