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Statement of Financial Accounting Standards No. 130 - page 54 / 57

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54 / 57

                                                  1998         1999

Net income:

   Gain on sale of securities                                $ 5,000

   Income tax expense                                         (1,500)

   Net gain realized in net income                             3,500

Other comprehensive income:

   Holding gain arising during period, net       $1,400        2,100

of tax

   Reclassification adjustment, net of tax            0       (3,500)

   Net gain (loss) recognized in other            1,400       (1,400)

comprehensive income

Total impact on comprehensive income            $ 1,400      $ 2,100

                                                =======      =======

===========================================================================

Illustration 2: Statement 115 Available-for-Sale Debt Securities

136.  The available-for-sale interest-bearing debt securities (bonds) in

this illustration were purchased at a premium to yield 6.5 percent.

Interest income is included in net income based on the historical yield,

and the bonds decline in fair value during the first two years in which

they are held.

137.  On December 31, 1995, registration of Micki Inc.'s 8-year, 8 percent

debentures, interest payable annually, became effective and the entire

issue of $10,000,000 was sold at par.  At the end of each of the next four

years, the closing prices and the related market interest rates to maturity

were as follows:

    December 31          Price ($000)           Yield (%)

       1996                 $102.6                  7.5

       1997                  107.3                  6.5

       1998                   96.1                  9.0

       1999                   92.2                 10.5

138.  On December 31, 1997, Enterprise purchased $1,000,000 of Micki Inc.'s

bonds on the open market at 107.3 and classified them as available for

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