<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-K

(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND
    EXCHANGE ACT OF 1934 [FEE REQUIRED]

                 For the fiscal year ended December 31, 1997

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

                  For the transition period from ____ to ____

                         Commission File Number 0-18528

        INCOME GROWTH PARTNERS, LTD. X, A CALIFORNIA LIMITED PARTNERSHIP
             (Exact name of registrant as specified in its charter)

          CALIFORNIA                                             33-0294177
(State of other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

1300 Sorrento Valley Road, Suite 108, San Diego, California         92121
          (Address of principal executive offices)                (Zip Code)

                                 (619) 457-2750
              (Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: 
LIMITED PARTNERSHIP INTERESTS

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
filing requirements for the past 90 days.  Yes [X]  No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. [X]

APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:

Indicate by check mark whether the Registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes[X] No [ ]
<PAGE>   2

                                TABLE OF CONTENTS


<TABLE>
<CAPTION>
                                                                                          PAGE
                                                                                          ----
PART I

<S>         <C>                                                                            <C>
Item 1.     Business........................................................................1

Item 2.     Properties......................................................................3

Item 3.     Legal Proceedings...............................................................4

Item 4.     Submission of Matters to a Vote of Security Holders.............................4

PART II

Item 5.     Market for the Registrant's Units and Related Security Holder Matters...........4

Item 6.     Selected Financial Data.........................................................5

Item 7.     Management's Discussion and Analysis of Financial Condition
            and Results of Operations.......................................................6

Item 8.     Financial Statements and Supplementary Data.....................................9

Item 9.     Disagreements on Accounting and Financial Disclosures...........................9

PART III

Item 10.    Directors and Executive Officers of the Registrant..............................9

Item 11.    Executive Compensation.........................................................10

Item 12.    Security Ownership of Certain Beneficial Owners and Management.................10

Item 13.    Certain Relationships and Related Transactions.................................11

PART IV

Item 14.    Exhibits, Financial Statement Schedules and Reports on Form 8-K................11

Signatures  ...............................................................................14
</TABLE>



<PAGE>   3


                                     PART I

ITEM 1.  BUSINESS

GENERAL

Income Growth Partners, Ltd. X, a California limited partnership (the "Limited
Partnership") and subsidiaries (collectively, the "Partnership"), was formed in
February 1988, to acquire, operate and hold for investment one or more parcels
of income-producing, multi-family residential real property. Currently, the
Limited Partnership operates two separate apartment complexes in Southern
California: 1) Mission Park and 2) Shadow Ridge Meadows. The limited partnership
agreement provides that the Partnership shall continue through February 2021,
unless terminated sooner.

Income Growth Management, Inc. ("IGM") is the sole general partner. The general
partner has made no cash capital contributions to date. As of December 31, 1997,
there were approximately 2,082 limited partners in the Partnership.

The Partnership has no full-time employees. Employees of corporations affiliated
with the general partner perform certain administrative and other services on
behalf of the Partnership (see Item 13). The Partnership's executive offices are
located at 11300 Sorrento Valley Road, Suite 108, San Diego, California 92121
and the Partnership's telephone number is (619) 457-2750.

FINANCING STRATEGY

The Partnership seeks to minimize the cost of financing its properties and will
refinance existing loans from time to time to take advantage of prevailing
market conditions. The Mission Park and Shadow Ridge Meadows properties were
refinanced to prevailing rates during 1995 and 1997, respectively.

COMPETITIVE CONDITIONS

Changes in the national and regional economic climates, changes in local real
estate conditions such as the oversupply of apartments or a reduction in demand
for apartments, competition from single-family housing, apartment properties and
other forms of multifamily residential housing, the inability to provide
adequate maintenance and to obtain adequate insurance, increased operating
costs, changes in zoning, building, environmental, rent control and other laws
and regulations, the costs of compliance with current and future laws, changes
in real property taxes and unusual occurrences (such as earthquakes and floods)
and other factors beyond the control of the Partnership may adversely affect the
income from, and value of, the Partnership's properties.





                                       1
<PAGE>   4


ITEM 1.  BUSINESS, CONTINUED

LEASES AND INFLATION

Substantially all of the leases at the Partnership's apartment properties are
for a period of six months or less, allowing, at the time of renewal, for
adjustments in the rental rate and the opportunity to release the apartment unit
at the prevailing market rate. The short-term nature of these leases generally
serves to minimize the risk to the Partnership of the adverse effect of
inflation and the Partnership does not believe that inflation has had a material
adverse impact on its revenues.

RESTRICTIONS IMPOSED BY LAWS BENEFITING DISABLED PERSONS

Under the Americans with Disabilities Act of 1990 (the "ADA"), all places of
public accommodation are required to meet certain federal requirements related
to access and use by disabled persons. These requirements became effective in
1992. A number of additional federal, state and local laws exist which also may
require modifications to the properties, or restrict certain further renovations
thereof, with respect to access thereto by disabled persons. For example, the
Fair Housing Amendments Act of 1988 (the "FHAA") requires apartment properties
first occupied after March 13, 1990 to be accessible to the handicapped.
Noncompliance with the ADA or the FHAA could result in an order to correct any
noncomplying feature, which could result in substantial capital expenditures.
Although management of the Partnership believes that the properties are
substantially in compliance with present requirements, if the properties are not
in compliance, the Partnership is likely to incur additional costs to comply
with the ADA and the FHAA.

RECENT DEVELOPMENTS

In January 1994, the Limited Partnership filed a voluntary petition for relief
under Chapter 11 of the federal bankruptcy laws in the United States Bankruptcy
Court for Southern District of California.

In October 1994, the Limited Partnership filed a Plan of Reorganization (the
"Plan") that was confirmed by the Bankruptcy Court in March 1995. In general,
the Plan provided for resolution of all claims against the Limited Partnership
as of January 26, 1994. The Limited Partnership emerged from Chapter 11
effective in May 1995 having fully satisfied all claims in accordance with the
Plan.

The Plan proposed that the Limited Partnership raise additional funds through an
offering of Class A Units that have a preferred status over the Original Units.
The gross proceeds from the offering, which closed in June 1995, were
approximately $2 million.

Under the provisions of the Plan, the Limited Partnership was allowed to retain
ownership of the Mission Park and Shadow Ridge Meadows properties. However, the
Limited Partnership was unable to raise the capital necessary to retain
ownership of its third property, Margarita Summit.





                                       2
<PAGE>   5

ITEM 1.  BUSINESS, CONTINUED

During 1995, on a tax free basis, the Limited Partnership exchanged the Mission
Park property for a 99% interest in IGP X Mission Park Associates, L.P., a newly
formed California limited partnership (the "Mission Park Subsidiary"). The
Mission Park Subsidiary is separate and distinct from the Partnership, having
separate assets, liabilities and business operations.

During 1997, on a tax free basis, the Limited Partnership exchanged the Shadow
Ridge Meadows property for a 99% interest in IGP X Shadow Ridge Meadows, Ltd., a
newly formed California limited partnership (the "Shadow Ridge Meadows
Subsidiary"). The Shadow Ridge Meadows Subsidiary is also separate and distinct
from the Partnership, having separate assets, liabilities and business
operations.

Formation of the Mission Park Subsidiary and the Shadow Ridge Subsidiary had no
impact on the Partnership's overall operations, allocation of net income/loss,
cash distributions or Partnership assets.


ITEM 2.  PROPERTIES

The Partnership presently owns two properties, as follows:

      MISSION PARK:

      Date of purchase:  August 1989

      Purchase price:  $17,100,000

      1995 impairment write-down:  $1,200,000

      Property Description: A 264-unit apartment complex located in San Marcos,
      California. The property includes two full-size recreation rooms, two
      heated swimming pools and spas, night-lighted tennis courts, a satellite
      cable TV system and covered parking. The building is approximately eight
      years old. The property contains 215,292 square feet.

      SHADOW RIDGE MEADOWS:

      Date of purchase:  November 1988

      Purchase price:  $12,700,000

      1995 impairment write-down:  $1,600,000

      Property Description: A 184-unit apartment complex located in Vista,
      California. The property includes a large recreation center, a heated
      swimming pool and spa, five laundry facilities, a satellite cable TV
      system and covered parking. The building is approximately eleven years
      old. The property contains 127,197 square feet.





                                       3
<PAGE>   6

ITEM 3.  LEGAL PROCEEDINGS

The Partnership is not a party to any legal proceedings other than various
claims and lawsuits arising in the normal course of its business which, in the
opinion of the Partnership's management, are not individually or in the
aggregate material to its business.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

      None


                                     PART II

ITEM 5.  MARKET FOR REGISTRANT'S UNITS AND RELATED SECURITY HOLDER MATTERS

(a)   Market Information

      As of December 31, 1997, the outstanding securities of the Partnership
      included the Original Units and Class A Units held by the limited
      partners. The Partnership's Amended and Restated Agreement of Partnership
      substantially restricts transfers of all units and no public trading
      market for the units exists or is intended or expected to develop.

(b)   Holders

      As of December 31, 1997, the Partnership's 18,826.5 outstanding Original
      Units and 8,100 Class A Units were held by an aggregate of 2,082 Limited
      Partners.

(c)   Dividends

      As a limited partnership, the Partnership does not pay dividends.

      The amended partnership agreement provides that any distributions of cash
      from operations will be made in the following order of priority:

      First, each Class A Unit receives a 12% cumulative noncompounded annual
      return on the balance of actual funds invested in Class A Units. Second,
      each Class A Unit receives a total return of original invested capital.
      Third, each Class A Unit receives a $500 bonus. Fourth, each Original Unit
      holder receives a 10% noncumulative return on the adjusted balance of
      original invested capital. Thereafter, 90% of distributions on cash from
      operations will be made to the Original Unit holders and 10% to the
      general partner.

      No distributions had been made through December 31, 1997. As of December
      31, 1997 and 1996, cumulative unpaid distributions were approximately
      $15,900,000 and $15,100,000, respectively.





                                       4
<PAGE>   7


ITEM 5.  MARKET FOR REGISTRANT'S UNITS AND RELATED SECURITY
         HOLDER MATTERS, CONTINUED

      The Partnership distributed $100,000 during January 1998. Cash
      distributions are determined at the discretion of the general partner. Any
      future distributions are largely dependent on future income, expenses,
      debt service and operating reserves and there can be no assurance that
      future distributions will be paid.


ITEM 6.  SELECTED FINANCIAL DATA

The following selected financial data should be read in conjunction with the
financial statements and the related notes described in Item 8 herein:

<TABLE>
<CAPTION>
                                            1997           1996            1995          1994           1993
                                        ------------   ------------   ------------   ------------   ------------
<S>                                     <C>            <C>            <C>            <C>            <C>         
Total assets                            $ 21,225,719   $ 21,476,918   $ 22,153,868   $ 28,945,057   $ 33,954,409
Long-term obligations                     19,765,202     19,788,869     19,966,935     29,426,708     29,678,456
Total revenue                              3,791,975      3,576,981      3,896,384      4,344,717      4,418,407
Total expenses                            (4,163,361)    (4,063,509)    (4,584,674)    (9,413,282)    (6,969,061)
Write-down of land and building                    -              -              -      3,900,000              -
Loss before extraordinary item:
    gain on forgiveness of debt             (371,386)      (486,528)      (688,290)    (5,322,740)    (2,550,654)
Extraordinary item:  gain on
    forgiveness of debt                            -              -      4,446,019              -              -
Net income (loss)                           (371,386)      (486,528)     3,757,729     (5,322,740)    (2,550,654)
Net loss per partnership unit
    before extraordinary gain                 (13.79)        (18.06)        (28.48)       (282.73)       (135.49)
Extraordinary gain per partnership unit            -              -         184.01              -              -
Net income (loss) per partnership
    unit                                      (13.79)        (18.06)        155.53        (282.73)       (135.49)
Weighted average limited partnership
 units                                        26,926         26,926         24,161         18,826         18,826
</TABLE>

There had been no cash distributions to partners to December 31, 1997. The
Partnership distributed $100,000 during January 1998.




                                       5
<PAGE>   8


ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS:

The following Management's Discussion and Analysis of Financial Condition and
Results of Operations should be read in conjunction with the financial
statements and notes thereto filed herewith. Historical results and percentage
relationships set forth in the consolidated statement of operations in the
financial statements, including trends which might appear, should not be taken
as indicative of future operations.

(a)   Liquidity and Capital Resources

      In January 1994, the Limited Partnership filed a voluntary petition for
      relief under Chapter 11 of the federal bankruptcy laws in the United
      States Bankruptcy Court for the Southern District of California.

      Under the provisions of the Plan of Reorganization (the "Plan"), the
      Limited Partnership was allowed to retain ownership of the Mission Park
      and Shadow Ridge Meadows properties. Despite $2,025,000 in additional
      capital from existing investors in the form of Class A Units, the Limited
      Partnership was unable to raise the necessary capital to retain ownership
      of its third property, Margarita Summit.

      The Limited Partnership emerged from Chapter 11 effective in May 1995
      having fully satisfied all claims in accordance with the Plan.

      Prior to 1996, the Partnership's operating and debt service obligations
      have been financed through the sale of Partnership Units, cash provided by
      operating activities, and 1995 debt restructuring activities. During 1997
      and 1996, all of the Partnership's operating and debt service cash
      requirements have been met through cash generated from operations.

      As of December 31, 1997, the Partnership's properties, Shadow Ridge
      Meadows and Mission Park, remain highly leveraged. The Mission Park
      mortgage was refinanced in December 1995 at a fixed interest rate of
      7.76%. The Shadow Ridge Meadows mortgage was refinanced in October 1997 at
      a fixed interest rate of 7.49%.

      Despite the refinancings, mortgage indebtedness on the properties remains
      high, which may make it difficult for the properties to service their debt
      through Partnership operations. In the event that one or more of the
      properties is unable to support its debt service and the Partnership is
      unable to cover operational shortfalls from cash reserves, the Partnership
      may have to take one or more alternative courses of action. The general
      partners would then determine, based on their analysis of relevant
      economic conditions and the status of the properties, a course of action
      intended to be consistent with the best interests of the Partnership.
      Possible courses of action might include the sacrifice, sale or
      refinancing of one or more of the properties, the entry into one or more
      joint venture partnerships with other entities, or the filing of another
      bankruptcy petition.





                                       6
<PAGE>   9


ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS, CONTINUED:

      The Partnership changed its method of reporting cash flows from the direct
      method to the indirect method in 1996. Prior period amounts have been
      reclassified to conform with the current year presentation.

      COMPARISON OF YEAR ENDED DECEMBER 31, 1997 TO THE YEAR ENDED
      DECEMBER 31, 1996.

      Net cash provided by operating activities for the year ended December 31,
      1997 was $594,000 compared to $360,000 for the same period in 1996. The
      principal reason for this difference is a decrease in net loss of
      approximately $115,000 and an increase in accounts payable resulting from
      the timing of payments.

      Net cash used in investing activities for the year ended December 31, 1997
      was $252,000 compared to $44,000 for the same period in 1996. The increase
      in cash used in investing activities is due primarily to increases in
      improvements made possible by increased rental revenues.

      Net cash used in financing activities for the year ended December 31, 1997
      was $305,000 compared to $225,000 for the same period in 1996. The
      increase is primarily due to debt issue costs related to the refinancing
      of the Shadow Ridge Meadows property.

      COMPARISON OF YEAR ENDED DECEMBER 31, 1996 TO THE YEAR ENDED 
      DECEMBER 31, 1995.

      Net cash provided by operating activities for the year ended December 31,
      1996 was $360,000 compared to net cash used by operating activities of
      $1,354,000 for the same period in 1995. The change is primarily due to a
      significant decrease in accounts payable resulting from the bankruptcy in
      1995.

      Net cash used in investing activities for the year ended December 31, 1996
      was $44,000 compared to $98,000 for the same period in 1995. The decrease
      is primarily due to fewer capital improvements in 1996 over 1995.

      Net cash used by financing activities for the year ended December 31, 1996
      was $245,000 compared to net cash provided by financing activities for the
      year ended December 31, 1995 of $1,425,000. The decrease is primarily
      attributable to the sale of Class A limited partnership units in 1995.

(b)   Results of Operations

      COMPARISON OF YEAR ENDED DECEMBER 31, 1997 TO THE YEAR ENDED
      DECEMBER 31, 1996.

      Rental revenue for the year ended December 31, 1997 was $3,656,000, an
      increase of 7% over rents of $3,430,000 in the comparable period in 1996.
      The increase is primarily attributable to an increase in monthly tenant
      rental rates and occupancy rates.





                                       7
<PAGE>   10


ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
         RESULTS OF OPERATIONS, CONTINUED:

      Interest expense for the year ended December 31, 1997 was $1,544,000, an
      increase of 1% over interest expense of $1,527,000 in the comparable
      period in 1996. The increase is primarily attributable to the variable
      interest rate on the Shadow Ridge Meadows Property. The increase is also
      attributable to amortization of loan fees related to the refinancing of
      the Shadow Ridge Meadows Property.

      Operating expense for the year ended December 31, 1997 was $1,782,000, an
      increase of 3% over operating expense of $1,726,000 in the comparable
      period in 1996. The increase is primarily attributable to an increase in
      refurbishment expenses in 1997 over 1996. The increase is also
      attributable to higher expenses related to increases in occupancy rates.

      Depreciation expense for the year ended December 31, 1997 was $837,000, an
      increase of 3% over depreciation expense of $810,000 in the comparable
      period in 1996. The increase is primarily attributable to an increase in
      capitalized fixed asset expenditures in 1997 over 1996.

      COMPARISON OF YEAR ENDED DECEMBER 31, 1996 TO THE YEAR ENDED
      DECEMBER 31, 1995.

      Rental revenue for the year ended December 31, 1996 was $3,430,000, a
      decrease of 6% over rents of $3,663,000 in the comparable period in 1995.
      The decrease is primarily attributable to the 1995 foreclosure loss of the
      Margarita Summit property.

      Interest expense for the year ended December 31, 1996 was $1,527,000, a
      decrease of 8% over interest expense of $1,660,000 in the comparable
      period in 1995. The decrease is primarily due to the loss of the Margarita
      Summit Property in 1995.

      Operating expense for the year ended December 31, 1996 was $1,726,000, a
      decrease of 17% over operating expense of $2,074,000 in the comparable
      period in 1995. The decrease is primarily attributable to the 1995
      foreclosure loss of the Margarita Summit property.

      Depreciation expense for the year ended December 31, 1996 was $810,000, a
      decrease of 5% over depreciation expense of $850,000 in the comparable
      period in 1995. The decrease is primarily due to the loss of the Margarita
      Summit Property in 1995 offset by increased capitalized fixed asset
      expenditures in 1996.

(c)   Year 2000

      The Partnership currently uses a prepackaged accounting software on a
      Novell Netware platform. The software maker has announced that it will not
      support the current software beginning in the Year 2000. As a result, the
      Partnership intends to purchase a new accounting system that is Year 2000
      compliant. The Partnership believes that the purchase and related training
      costs will not be material to the Partnership's financial position or
      results of operations.





                                       8
<PAGE>   11


ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The consolidated financial statements and supplementary data required by this
Item are set forth at the pages indicated in Item 14(a).

1ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
          FINANCIAL DISCLOSURE

      None


                                    PART III

ITEM 10.  GENERAL PARTNER AND EXECUTIVE OFFICERS OF THE PARTNERSHIP

      The general partner of the Partnership is Income Growth Management, Inc.
      ("IGM"), a California corporation. The executive officers of IGM do not
      receive compensation from the Partnership.

      The names, ages and positions of responsibility held by the executive
      officers and directors of IGM are as follows:

<TABLE>
<CAPTION>
              NAME             AGE                  POSITION
              ----             ---                  --------
          <S>                   <C>    <C>
          David Maurer          45     President and Director
          Timothy Maurer        48     Secretary and Director
          Robert Green          40     Vice President of Operations and Director
</TABLE>

      FAMILY RELATIONSHIPS

      David Maurer and Timothy Maurer are brothers.

      BUSINESS EXPERIENCE

      The following is a brief background of the directors and executive
      officers of IGM:

      DAVID MAURER has served as President and Director of IGM since 1992, and
      as President and Director of ENA Corporation ("ENA"), an affiliate of IGM,
      since 1979. He has been involved in real estate syndication and property
      management since 1980, and in real estate development and construction
      since 1974. David was educated at the University of California, San Diego
      (B.A. 1974).

      TIMOTHY MAURER has served as Chief Financial Officer, Secretary and
      Director of IGM since 1979. He has been involved in real estate
      syndication, development, design and construction since 1975. Timothy was
      educated at the California College of Arts and Crafts, Oakland (B.F.A.
      1972).





                                       9
<PAGE>   12

ITEM 10.  GENERAL PARTNER AND EXECUTIVE OFFICERS OF THE PARTNERSHIP, CONTINUED

      ROBERT GREEN has served as Vice President of Operations and Director since
      1988. He has also been the Director of Property Management of ENA since
      1988. He has been directly involved in property management since 1980.
      Robert worked for four years with Coldwell Banker Real Estate Management
      Services in San Diego managing both commercial and residential property.
      He also worked for four years with C&R Realty Company managing over 75
      residential properties in Oregon and Washington. Robert was educated at
      Pacific University in Forest Grove, Oregon (B.A. 1980).

ITEM 11.  EXECUTIVE COMPENSATION

      The Partnership has no executive officers and has not paid nor proposes to
      pay any compensation or retirement benefits to the directors or executive
      officers of Income Growth Management, Inc., the general partner. See Item
      13 for compensation to the general partner.



ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

(a)  Security Ownership of Certain Beneficial Owners

<TABLE>
<CAPTION>
                            NAME AND ADDRESS OF        AMOUNT AND NATURE OF       PERCENT
        TITLE OF CLASS       BENEFICIAL OWNER          BENEFICIAL OWNERSHIP      OF CLASS
        --------------      -------------------        --------------------      --------
        <S>                <C>                              <C>                    <C>
        Class A Units      John W. Baer                     609.0000               7.5%
                           1091 Valley View Court
                           Los Altos, CA  94024
</TABLE>

      No other person or group is known by the Partnership to own beneficially
      more than 5% of the outstanding Original Units or Class A Units.

(b)   Security Ownership of Management

      None of the officers and directors of the Partnership's corporate general
      partners are the beneficial owners of any Original Units or Class A Units.





                                       10
<PAGE>   13


ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

      The Partnership is entitled to engage in various transactions involving
      its general partners and its affiliates as described in the Partnership
      Agreement.

      The table below reflects amounts paid to the general partner or its
      affiliates during the year ended December 31, 1996:

<TABLE>
<CAPTION>
                                        1997          1996          1995
                                      --------      --------      --------
           <S>                        <C>           <C>           <C>     
           Management fees            $179,000      $167,000      $175,000
           Administrative fees         113,000        68,600        81,100
           Loan origination fees        97,500             -       102,000
</TABLE>


                                     PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a) Documents filed as part of this report:

    (1) Financial Statements

        The following financial statements of the Partnership and related notes
        to financial statements and accountants' report are filed herewith:

        Report of Independent Accountants

        Consolidated Balance Sheets as of December 31, 1997 and 1996

        Consolidated Statements of Operations for the years ended December 31,
        1997, 1996 and 1995

        Consolidated Statements of Partners' Capital (Deficit) for the years
        ended December 31, 1997, 1996 and 1995

        Consolidated Statements of Cash Flows for the years ended December 31,
        1997, 1996 and 1995

        Notes to Consolidated Financial Statements

    (2) Financial Statement Schedule

        Schedule III - Real Estate and Accumulated Depreciation

        All other schedules are either not required, or the information therein
        is included in the notes to the audited financial statements.





                                       11
<PAGE>   14


ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
          FORM 8-K, CONTINUED

(b)   Reports on Form 8-K

      No reports on Form 8-K were filed during the last quarter of the fiscal
      year covered by this report.

(c)   Exhibits

      The following Exhibit Index lists the exhibits that are either filed as
      part of this report or incorporated herein by reference from a prior
      filing.











                                       12
<PAGE>   15

                                  EXHIBIT INDEX


<TABLE>
<CAPTION>
EXHIBIT NO.                              DESCRIPTION                            LOCATION
-----------                              -----------                            --------
<S>                 <C>                                                            <C>
     2.2            Second Amended Disclosure Statement to Debtor's                (1)
                    Second Amended Plan of Reorganization, As Revised
                    (with Second Amended Plan of Reorganization
                    attached as Exhibit 1) filed with the Bankruptcy Court
                    on October 25, 1994;

                       Order Approving Second Amended Disclosure
                       Statement to Debtor's Second Amended Plan of
                       Reorganization, Approving Ballots and Fixing
                       Dates for Filing Acceptances or Rejections of Plan
                       and for Confirmation Hearing, Combined with
                       Notice Thereof;

                       Equity Interest Holder Ballot for Accepting or
                       Rejecting Debtor's Second Amended Plan of
                       Reorganization;

                       Offering Memorandum for Income Growth Partners, Ltd. X
                       Class A Units dated October 27, 1994 (with Amended and
                       Restated Agreement of Limited Partnership attached as
                       Exhibit B).

     3.1            Articles of Incorporation of IGP X Mission Park, Inc.          (2)

     4.2            Amended and Restated Agreement of Limited Partnership          (3)

     4.3            Agreement of Limited Partnership of IGP X Mission              (2)
                    Park Associates, L.P., A California Limited Partnership

     4.4            Agreement of Limited Partnership of IGP X Shadow Ridge         (6)
                    Meadows, Ltd., A California Limited Partnership

    27.6            Financial Data Schedule                                        (6)

    28.1            Prospectus dated January 3, 1991                               (4)

    28.4            Letter regarding resignation of General Partner                (5)
</TABLE>

-------------------------

(1)  Incorporated by reference from the Partnership's Quarterly Report on Form
     10-Q for the third quarter ended September 30, 1994 (Commission File Number
     0-18528).

(2)  Incorporated by reference from the Partnership's Current Report on Form 8-K
     dated December 27, 1995 (Commission File Number 0-18528).






                                       13
<PAGE>   16

(3)  Included as Exhibit "B" to the Partnership's Offering Memorandum for Income
     Growth Partners, Ltd. X Class A Units dated October 27, 1994, included in
     Exhibit 2.2 incorporated by reference from the Partnership's Quarterly
     Report on Form 10-Q for the third quarter ended September 30, 1994
     (Commission File Number 0-18528).

(4)  Incorporated by reference from the Partnership's Annual Report on Form 10-K
     for the Fiscal Year ended December 31, 1992 (Commission File Number
     0-18528).

(5)  Incorporated by reference from the Partnership's Annual Report on Form 10-K
     for the Fiscal Year ended December 31, 1993 (Commission File Number
     0-18528).

(6)  Filed herewith


                                   SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

Date:  ____________

                                        INCOME GROWTH PARTNERS, LTD. X
                                        (a California Limited Partnership)

                                        By:  Income Growth Management, Inc.
                                             General Partner



                                        By:  /s/ David W. Maurer
                                            -----------------------------------
                                                 David W. Maurer, President

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the Registrant and
in the capacities and on the dates indicated.

             Signatures               Title and Capacity            Date

      -------------------------       ------------------          ---------

      -------------------------       ------------------          ---------






                                       14
<PAGE>   17













                                    APPENDIX

                              FINANCIAL STATEMENTS








<PAGE>   18


              INDEX TO FINANCIAL STATEMENTS - ITEM 14 OF FORM 10-K


<TABLE>
<CAPTION>
                                                                                          PAGE
                                                                                          ----
<S>                                                                                       <C>
Report of Independent Accountants.........................................................F-2

Consolidated Financial Statements and Notes:

     Balance Sheets as of December 31, 1997 and 1996......................................F-3

     Statements of Operations for the Years Ended
     December 31, 1997, 1996 and 1995.....................................................F-4

     Statements of Partners' Capital (Deficit) for the Years Ended
     December 31, 1997, 1996 and 1995.....................................................F-5

     Statements of Cash Flows for the Years Ended
     December 31, 1997, 1996 and 1995.....................................................F-6

     Notes to Financial Statements........................................................F-7

     Schedule III - Real Estate and Accumulated Depreciation.............................F-18
</TABLE>











                                      F-2
<PAGE>   19


                        REPORT OF INDEPENDENT ACCOUNTANTS



Income Growth Partners, Ltd. X,
   a California limited partnership


We have audited the consolidated financial statements and the financial
statement schedule of Income Growth Partners, Ltd. X, a California limited
partnership, and subsidiaries (collectively, the "Partnership") listed in Item
14(a) of this Form 10-K. These financial statements and financial statement
schedule are the responsibility of the general partners and the Partnership's
management. Our responsibility is to express an opinion on these financial
statements and financial statement schedule based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Income Growth
Partners, Ltd. X and subsidiaries as of December 31, 1997 and 1996 and the
results of their operations and cash flows for each of the three years in the
period ended December 31, 1997, in conformity with generally accepted accounting
principles. In addition, in our opinion the financial statement schedule
referred to above, when considered in relation to the basic financial statements
taken as a whole, presents fairly, in all material respects, the information
required to be included therein.





                                          COOPERS & LYBRAND L.L.P.


San Diego, California
February 16, 1998


                                      F-3
<PAGE>   20


                 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                           CONSOLIDATED BALANCE SHEETS
                           DECEMBER 31, 1997 AND 1996

                                   ----------


<TABLE>
<CAPTION>
                                                              1997              1996
                                                         ------------       ------------
<S>                                                      <C>                <C>         
                                     ASSETS

Rental properties:
        Land                                             $  7,078,365       $  7,078,364
        Buildings and improvements                         21,607,078         21,355,047
                                                         ------------       ------------
                                                           28,685,443         28,433,411
        Less accumulated depreciation                      (8,582,492)        (7,745,530)
                                                         ------------       ------------
                                                           20,102,951         20,687,881

Cash and cash equivalents                                     282,293            244,582
Deferred loan fees, net of accumulated amortization
        of $80,873 and $61,434, respectively                  689,294            370,820
Prepaid expenses and other assets                             151,181            173,635
                                                         ------------       ------------
                                                         $ 21,225,719       $ 21,476,918
                                                         ============       ============


                       LIABILITIES AND PARTNERS' CAPITAL

Mortgage loans payable                                   $ 19,765,202       $ 19,788,869

Other liabilities:
        Loan payable to affiliates                            113,000             55,300
        Accounts payable and accrued liabilities              148,501             81,473
        Accrued interest payable                              125,623            123,392
        Security deposits                                     201,250            184,355
                                                         ------------       ------------
                                                           20,353,576         20,233,389

Commitments

Partners' capital                                             882,143          1,253,529
Note receivable from general partner                          (10,000)           (10,000)
                                                         ------------       ------------
                                                         $ 21,225,719       $ 21,476,918
                                                         ============       ============
</TABLE>


    The accompanying notes are an integral part of the financial statements.



                                      F-4
<PAGE>   21
                INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                      CONSOLIDATED STATEMENTS OF OPERATIONS
              FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995

                                   ----------


<TABLE>
<CAPTION>
                                                              1997              1996              1995
                                                          -----------       -----------       -----------
<S>                                                       <C>               <C>               <C>        
Revenues:
   Rents                                                  $ 3,655,595       $ 3,429,751       $ 3,663,206
   Interest                                                     8,925             6,887            31,714
   Other                                                      127,455           140,343           201,464
                                                          -----------       -----------       -----------
            Total revenues                                  3,791,975         3,576,981         3,896,384
                                                          -----------       -----------       -----------

Expenses:
   Operating expenses                                       1,782,364         1,726,424         2,073,775
   Depreciation                                               836,962           810,220           850,178
   Interest and penalties                                   1,544,035         1,526,865         1,660,721
                                                          -----------       -----------       -----------
            Total expenses                                  4,163,361         4,063,509         4,584,674
                                                          -----------       -----------       -----------

Loss before extraordinary item                               (371,386)         (486,528)         (688,290)

Extraordinary item:
   Gain on forgiveness of debt                                      -                 -         4,446,019
                                                          -----------       -----------       -----------
Net income (loss)                                         $  (371,386)      $  (486,528)      $ 3,757,729
                                                          ===========       ===========       ===========

Basic and diluted per limited partnership unit data:
   Loss before extraordinary gain                         $    (13.79)      $    (18.06)      $    (28.48)
   Extraordinary gain                                               -                 -            184.01
                                                          -----------       -----------       -----------

   Net income (loss)                                      $    (13.79)      $    (18.06)      $    155.53
                                                          ===========       ===========       ===========

Weighted average limited partnership units                     26,926            26,926            24,161
                                                          ===========       ===========       ===========
</TABLE>


    The accompanying notes are an integral part of the financial statements.




                                      F-5
<PAGE>   22


                 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

             CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL (DEFICIT)
              FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995

                                   ----------


<TABLE>
<CAPTION>
                                                          LIMITED PARTNERS
                                                    ------------------------ 
                                          GENERAL   ORIGINAL     CLASS A
                                          PARTNER   PARTNERS     PARTNERS             TOTAL
                                        -----------  ------   --------------       ----------- 
<S>               <C> <C>               <C>          <C>      <C>                  <C>         
Balance, December 31, 1994              $(3,972,413) $    -   $            -       $(3,972,413)

Net income                                3,757,729       -                -         3,757,729

Issuance of 8,099 Class A
partnership units, net of issuance
costs                                             -       -        1,954,741         1,954,741
                                        -----------  ------   --------------       ----------- 

Balance, December 31, 1995                 (214,684)      -        1,954,741         1,740,057

Net loss                                    (72,979)      -         (413,549)         (486,528)
                                        -----------  ------   --------------       ----------- 

Balance, December 31, 1996                 (287,663)      -        1,541,192         1,253,529

Net loss                                    (55,708)      -         (315,678)         (371,386)
                                        -----------  ------   --------------       ----------- 

Balance, December 31, 1997              $  (343,371) $    -      $ 1,225,514       $   882,143
                                        ===========  ======   ==============       =========== 
</TABLE>


    The accompanying notes are an integral part of the financial statements.





                                      F-6
<PAGE>   23

                 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995


<TABLE>
<CAPTION>
                                                                                  1997            1996           1995
                                                                              -----------     -----------     -----------
<S>                                                                           <C>             <C>             <C>        
Cash flows from operating activities:
   Net income (loss)                                                          $  (371,386)    $  (486,528)    $ 3,757,729
   Adjustments to reconcile net income (loss) to net cash
      provided (used) by operating activities:
         Depreciation                                                             836,961         810,220         850,178
         Amortization of loan fees                                                 20,103          27,543          13,358
         Write off of refinancing deposit and deferred costs                            -               -          67,805
         Extraordinary gain on forgiveness of debt                                      -               -      (4,446,019)
         Decrease (increase) in prepaid expenses and other assets                  22,454         (25,584)       (284,979)
         Increase (decrease) in:
            Accounts payable and accrued liabilities                               67,028         (49,695)     (1,327,449)
            Security deposits                                                      16,895          19,154         (42,674)
            Accrued interest payable                                                2,231          64,886          58,506
                                                                              -----------     -----------     -----------
               Net cash provided (used) by operating activities                   594,286         359,996      (1,353,545)
                                                                              -----------     -----------     -----------

Cash flows from investing activities:
   Capital expenditures                                                          (252,031)        (44,383)        (98,273)
                                                                              -----------     -----------     -----------
               Net cash used in investing activities                             (252,031)        (44,383)        (98,273)
                                                                              -----------     -----------     -----------

Cash flows from financing activities:
   Sale of Partnership units                                                            -               -       2,024,991
   Payments of debt issuance costs                                                      -               -         (70,250)
   Principal payments under mortgage debt                                         (23,667)       (178,066)       (512,856)
   Loan fees and refinancing costs                                               (338,577)              -               -
   Principal payments to affiliate                                                (14,800)        (46,700)        (17,028)
   Proceeds from affiliate loan                                                    72,500               -               -
                                                                              -----------     -----------     -----------
               Net cash provided (used) by financing activities                  (304,544)       (224,766)      1,424,857
                                                                              -----------     -----------     -----------
               Net increase (decrease) in cash and cash equivalents                37,711          90,847         (26,961)

Cash and cash equivalents at beginning of year                                    244,582         153,735         180,696
                                                                              -----------     -----------     -----------
               Cash and cash equivalents at end of year                       $   282,293     $   244,582     $   153,735
                                                                              ===========     ===========     ===========
Supplemental cash flows information:
   Cash paid for interest                                                     $ 1,337,417     $ 1,434,436     $ 1,588,857
                                                                              ===========     ===========     ===========
</TABLE>


    The accompanying notes are an integral part of the financial statements.




                                      F-7
<PAGE>   24

                INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   ----------



 1.   DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION:

      Income Growth Partners, Ltd. X (a California limited partnership) (the
      "Limited Partnership") and subsidiaries (collectively, the "Partnership")
      was formed in February 1988, to acquire, operate and hold for investment
      one or more parcels of income-producing, multi-family residential real
      property. Currently, the Partnership owns a 264 unit building in San
      Marcos, California ("Mission Park") and a 184 unit building in Vista,
      California ("Shadow Ridge Meadows").

      Income Growth Management, Inc. is the sole general partner. The general
      partner has made no cash capital contributions to date. As of December 31,
      1997, there were approximately 2,082 limited partners in the Partnership.

      In January 1994, the Limited Partnership filed a voluntary petition for
      relief under Chapter 11 of the federal bankruptcy laws in the United
      States Bankruptcy Court for Southern District of California. The Limited
      Partnership emerged from Chapter 11 effective in May 1995 having fully
      satisfied all claims in accordance with the Plan of Reorganization (the
      "Plan").

      Under the provisions of the Plan, the Limited Partnership was allowed to
      retain ownership of the Mission Park and Shadow Ridge Meadows properties.
      However, the Limited Partnership was unable to raise the required capital
      necessary to retain ownership of its third property, Margarita Summit. The
      extraordinary gain on forgiveness of debt reflected in the accompanying
      consolidated statement of operations for the year ended December 31, 1995
      is summarized as follows:

<TABLE>
           <S>                                                  <C>      
           Discharge of debt due to reorganization
                according to the Plan                           $1,433,394
           Refinancing of Mission Park                           2,013,625
           Foreclosure of Margarita Summit                         999,000
                                                                ----------
                                                                $4,446,019
                                                                ==========
</TABLE>

 2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

      PRINCIPLES OF CONSOLIDATION

      The consolidated financial statements include the accounts of the Limited
      Partnership and its subsidiaries. Subsidiaries consist primarily of
      California limited partnerships formed to hold and operating the
      Partnership's properties. All significant intercompany balances and
      transactions have been eliminated.





                                      F-8
<PAGE>   25

                INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   ----------



 2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED:

      CASH AND CASH EQUIVALENTS

      Cash and cash equivalents consist of cash and short-term investments with
      original maturities at the date of purchase of 90 days or less.

      LAND, BUILDINGS AND IMPROVEMENTS

      Land, buildings and improvements are recorded at cost. Buildings and
      improvements are depreciated using the straight-line method over the
      estimated useful lives of 27.5 and 5 to 15 years, respectively.

      Expenditures for maintenance and repairs are charged to expense as
      incurred. Significant renovations are capitalized and depreciated over the
      remaining life of the property.

      The Partnership assesses its property for impairment whenever events or
      changes in circumstances indicate that the carrying amount of the property
      may not be recoverable. Recoverability of property to be held and used is
      measured by a comparison of the carrying amount of the property to future
      undiscounted net cash flows expected to be generated by the property. If
      the property is considered to be impaired, the impairment to be recognized
      is measured by the amount by which the carrying amount of the property
      exceeds the fair value of the property.

      The cost and related accumulated depreciation of real estate are removed
      from the accounts upon disposition. Gains and losses arising from the
      dispositions are reported as income or expense.

      DEFERRED LOAN FEES

      Deferred loan fees represent expenses incurred in obtaining the
      Partnership's mortgage loans payable. These fees are being amortized to
      interest expense over the initial term of the loan using the straight-line
      method which approximates the effective interest method.

      REVENUE RECOGNITION

      Rental revenues are recognized at the beginning of each month based on the
      current occupancy of the apartments. Tenant leases are generally for a
      term of six months with an option to renew for an additional six months or
      to rent on a month-to-month basis.





                                      F-9
<PAGE>   26

                INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   ----------



 2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED:

      ADVERTISING COSTS

      Advertising costs are expensed as incurred. Total advertising expense was
      approximately $52,000, $56,000 and $61,000 for the years ended December
      31, 1997, 1996 and 1995, respectively.

      INCOME TAXES

      No provision has been made for federal or state income taxes on the
      operations of the Partnership. Such taxes are imposed on the individual
      partners for their respective shares of Partnership income or loss. The
      tax returns and amounts of allocable Partnership income or loss of the
      Partnership are subject to examination by federal and state taxing
      authorities. If such examinations result in a change in the Partnership
      status, or in changes to allocable Partnership income or loss, the tax
      liability of the Partnership or of the partners could be changed
      accordingly.

      USE OF ESTIMATES

      The preparation of financial statements in conformity with generally
      accepted accounting principles requires management to make estimates and
      assumptions that affect the reported amounts of assets and liabilities and
      disclosure of contingent assets and liabilities at the date of financial
      statements, and the reported amounts of revenue and expense during the
      reporting period. Actual results could differ from estimates.

      RECLASSIFICATIONS

      Certain prior year amounts have been reclassified to conform with the
      current year presentation.

      DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

        CASH AND SHORT-TERM INVESTMENTS: The carrying amount approximates fair
        value because of the short maturity of those instruments.

        LONG-TERM DEBT: The fair value of the Partnership's long-term debt is
        estimated based on the quoted market prices for the same or similar
        issues or on the current rates offered to the Partnership for debt of
        the same remaining maturities. The fair value of the mortgage loans on
        both the Mission Park and Shadow Ridge Meadows properties approximates
        their respective carrying values.





                                      F-10
<PAGE>   27

                INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   ----------



 3.   SUPPLEMENTAL CASH FLOW INFORMATION:

      Excluded from the consolidated statements of cash flows for the year ended
      December 31, 1995 are the following effects of certain noncash activities
      associated with the discharge of debt, refinancing of Mission Park and
      foreclosure of Margarita Summit in 1995:

      o   Assumption of a $102,000 note payable to an affiliate for payment of
          loan origination costs associated with the refinancing of the Mission
          Park property.

      o   $80,000 of additional debt incurred in connection with the cure and
          reinstatement of the mortgage loan related to the Shadow Ridge Meadows
          property.

      o   Extraordinary gain of $999,000 resulting from the foreclosure on the
          Margarita Summit property. Such gain was the difference between the
          carrying value of the property and the related liability of
          approximately $6,274,000 and $7,273,000, respectively.

      o   $1,433,000 of liabilities subject to compromise discharged due to
          reorganization.

      o   Extraordinary gain of approximately $2,014,000, representing the
          forgiveness of debt as a result of refinancing of Mission Park
          property.


 4.   CONCENTRATION OF CREDIT RISK:

      UNINSURED CASH

      The Partnership maintains cash accounts which may exceed FDIC insured
      levels at one financial institution. All of the Partnership's cash
      equivalents are held in a U.S. Treasury Money Fund which invests in
      short-term U.S. Treasury securities. The Partnership has not experienced
      any losses to date on its cash or cash equivalents.





                                      F-11
<PAGE>   28
                INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   ----------



 4.   CONCENTRATION OF CREDIT RISK, CONTINUED:

      NATURE OF BUSINESS

      Changes in the national and regional economic climates, changes in local
      real estate conditions such as the oversupply of apartments or a reduction
      in demand for apartments, competition from single-family housing,
      apartment properties and other forms of multifamily residential housing,
      the inability to provide adequate maintenance and to obtain adequate
      insurance, increased operating costs, changes in zoning, building,
      environmental, rent control and other laws and regulations, the costs of
      compliance with current and future laws, changes in real property taxes
      and unusual occurrences (such as earthquakes and floods) and other factors
      beyond the control of the Partnership may adversely affect the income
      from, and value of, the Partnership's properties.


 5.   ACTIVITIES OF THE PARTNERSHIP:

      The general partner or its affiliates manage and control the affairs of
      the Partnership and have general responsibility for supervising the
      Partnership's properties and operations. The general partner and
      affiliates are compensated for these efforts as explained in Note 7.

      The original partnership agreement was amended in October 1994 and
      provides that cash distributions from operations are to be determined at
      the discretion of the general partner. After adequate working capital
      reserves have been met, cash distributions deemed appropriate by the
      general partner will be made as set forth, therein.

      DISTRIBUTION OF CASH FROM OPERATIONS

      The amended partnership agreement provides that any distributions of cash
      from operations will be made in the following order of priority:

        First, each Class A Unit receives a 12% cumulative noncompounded annual
        return on the balance of actual funds invested in Class A Units. Second,
        each Class A Unit receives a total return of original invested capital.
        Third, each Class A Unit receives a $500 bonus. Fourth, each Original
        Unit holder receives a 10% noncumulative return on the adjusted balance
        of original invested capital. Thereafter, 90% of distributions on cash
        from operations will be made to the Original Unit holders and 10% to the
        general partner.





                                      F-12
<PAGE>   29

                INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   ----------



 5.   ACTIVITIES OF THE PARTNERSHIP, CONTINUED:

      No distributions have been made to December 31, 1997. As of December 31,
      1997 and 1996, cumulative unpaid distributions were approximately
      $15,900,000 and $15,100,000, respectively.

      DISTRIBUTION OF CASH FROM SALE OR REFINANCING

      The amended partnership agreement provides that any distributions of sale
      or refinancing will be made in the following order of priority:

        First, each Class A Unit receives a 12% cumulative noncompounded annual
        return on the balance of actual funds invested in Class A Units. Second,
        each Class A Unit receives a total return of original invested capital.
        Third, each Class A Unit receives a $500 bonus. Fourth, each Original
        Unit holder receives an amount equal to the adjusted balance of original
        invested capital. Fifth, each Original Unit holder receives a 10%
        cumulative return on the adjusted balance of original invested capital
        (the "Preferred Return"). Thereafter, 85% of distributions of cash from
        operations will be made to the Original Unit holders and 15% to the
        general partner.

      ALLOCATION OF NET INCOME/LOSS

      Net losses are allocated 85% to the limited partners and 15% to the
      general partner. Losses in excess of the limited partners' capital
      balances are allocated 100% to the general partner. Net income will be
      allocated 100% to the general partner until the aggregate net income
      allocated is equal to the aggregate net losses allocated to the general
      partner in all previous years. The balance of net income after the initial
      allocation to the general partner, shall be allocated 85% to the limited
      partners and 15% to the general partner.

 6.   MORTGAGE LOANS AND LOAN PAYABLE TO AFFILIATE:

      At December 31, 1997 and 1996, mortgage loans and loan payable to
      affiliate consisted of the following:

<TABLE>
<CAPTION>
                                                                                      1997         1996
                                                                                  -----------   -----------
     <S>                                                                            <C>             <C>
     Mission Park - Note dated December 27, 1995, collateralized by first trust
     deed on land and buildings and a guarantee by officers of the general
     partner, interest and principal of $73,144 payable monthly based on 7.76%
     annual interest rate, amortized over 30 years, balloon payment of
     approximately $8,918,000 due in January 2006.                                $10,022,451   $10,118,364
</TABLE>





                                      F-13
<PAGE>   30

                INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   ----------



 6. MORTGAGE LOANS AND LOAN PAYABLE TO AFFILIATE, CONTINUED:

<TABLE>
<CAPTION>
                                                                                         1997           1996
                                                                                     -----------    -----------
     <S>                                                                             <C>            <C>        
     Shadow Ridge Meadows - Note dated October 27, 1997, collateralized by first
     trust deed on land and buildings, interest and principal of $68,106 payable
     monthly based on 7.49% annual interest rate, amortized over 30 years,
     balloon payment of approximately $8,475,000 due in November 2007.               $ 9,742,751    $         -

     Shadow Ridge Meadows - Note dated July 26, 1988, collateralized by first
     trust deed on land and buildings with interest only payments plus
     additional payments of $8,250 per month based on 11th District cost of
     funds, plus 2.75% until August 1997, thereafter these payments include
     principal and interest, and call for periodic increases in interest rates,
     remaining principal of $9,585,000 paid October 1997.                                      -      9,670,505
                                                                                     -----------    -----------
                                                                                      19,765,202     19,788,869

     ContiNote payable to ENA, affiliate of general partner - promissory note dated
     December 27, 1995, with simple interest and principal payable from time to
     time at the published prime rate, stated as 8.5% at December 31, 1997, and due
     upon demand.                                                                         40,500         55,300

     Note payable to Income Growth Property Management, affiliate of the general
     partner - promissory note dated October 23, 1997, with simple interest and
     principal payable from time to time at the published prime rate, stated as
     8.5% at December 31, 1997, and due upon demand.                                      72,500              -
                                                                                     -----------    -----------
                                                                                     $19,878,202    $19,844,169
                                                                                     ===========    ===========
</TABLE>

      Future minimum annual principal payments are summarized as follows:

<TABLE>
           <S>                                    <C>         
           1998                                   $    307,244
           1999                                        209,602
           2000                                        226,176
           2001                                        244,060
           2002                                        263,360
           Thereafter                               18,627,760
                                                   -----------
                                                   $19,878,202
                                                   ===========
</TABLE>





                                      F-14
<PAGE>   31

                INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   ----------



 7.   RELATED PARTY TRANSACTIONS:

      Following is a description of related party transactions for the three
      years ended December 31, 1997 that have not otherwise been disclosed:

      MANAGEMENT FEES

      The Partnership's properties are managed by an affiliate of the general
      partner who receives a management fee.

      The fee for Mission Park is equal to 5% of the operating revenues
      generated by that property. The fee for Shadow Ridge Meadows was equal to
      4% of the operating revenues generated by that property through October
      1997 and 5% thereafter.

      Management fees aggregated approximately $179,000, $167,000 and $175,000
      in 1997, 1996 and 1995, respectively.

      ADMINISTRATIVE COSTS

      The Partnership has an agreement with an affiliate of the general partner
      (the "Affiliate") who furnishes certain administrative services and
      facilities to the Partnership, including accounting, data processing,
      duplication and transfer agent expenses, professional (including, but not
      limited to, regulatory reporting and legal services) and recording and
      partner communication expenses. The agreement provides for reimbursement
      to the affiliate for actual costs incurred. Reimbursements paid to the
      Affiliate under the provisions of this agreement aggregated approximately
      $113,000, $68,600 and $81,100 in 1997, 1996 and 1995, respectively.

      NOTE RECEIVABLE FROM GENERAL PARTNER

      At December 31, 1997 and 1996, a non-interest bearing note receivable of
      $10,000 was due from the general partner for their initial partnership
      capital contribution.

      DEBT PLACEMENT FEES

      During 1997 and 1995, the Partnership issued notes payable to an affiliate
      of the general partner for payment of debt placement fees of $97,500 and
      $102,000, respectively. Debt placement fees were equal to 1% of the
      principal amounts of the new third party financing. At December 31, 1997
      and 1996, the aggregate balances of these notes were $113,000 and $55,300,
      respectively (See Note 6).





                                      F-15
<PAGE>   32

                INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   ----------



 7.   RELATED PARTY TRANSACTIONS, CONTINUED:

      SUBORDINATED REAL ESTATE BROKERAGE COMMISSIONS

      If the general partner, or any of its affiliates, render services in
      negotiating and implementing the sale of Partnership properties, the
      general partner or such affiliates will be paid a real estate brokerage
      commission in an amount up to one-half of the commission customarily
      charged in arm's-length transactions but not in excess of 3% of the
      contract price for the property. Payment of such commission (other than
      payments in the form of promissory notes that are subordinated to the
      return of capital contributions to limited partners) shall be deferred
      until the limited partners have received distributions equal to their
      total original invested capital, plus the 10% Preferred Return described
      in Note 5. No properties were sold in 1997, 1996 or 1995 and, accordingly,
      no brokerage commissions were paid by the Partnership.


 8.   RECENT AUTHORITATIVE PRONOUNCEMENTS:

      In June 1997, the FASB issued SFAS No. 130, Reporting Comprehensive
      Income. SFAS No. 130 establishes requirements for disclosure of
      comprehensive income and becomes effective for the Partnership for the
      year ending December 31, 1998. Comprehensive income includes such items as
      foreign currency translation adjustments and unrealized holding gains and
      losses on available for sale securities that are currently being presented
      by the Company as a component of stockholders' equity (deficit). The
      Partnership does not expect this pronouncement to materially impact the
      Partnership's results of operations.

      In June 1997, the FASB issued SFAS No. 131, Disclosures About Segments of
      an Enterprise and Related Information. SFAS No. 131 establishes standards
      for disclosure about operating segments in annual financial statements and
      selected information in interim financial reports. It also establishes
      standards for related disclosures about products and services, geographic
      areas and major customers. This statement supersedes SFAS No. 14,
      Financial Reporting for Segments of a Business Enterprise. The new
      standard becomes effective for the Partnership for the year ending
      December 31, 1998 and requires that comparative information from earlier
      years be restated to conform to the requirements of this standard. The
      Partnership does not expect this pronouncement to materially change the
      Partnership's current reporting and disclosures.






                                      F-16
<PAGE>   33

                INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   ----------



 9.   EARNINGS PER LIMITED PARTNERSHIP UNIT DISCLOSURES:

      The Partnership has adopted the provisions of SFAS No. 128, Earnings Per
      Share, effective December 31, 1997. SFAS No. 128 requires the presentation
      of basic and diluted earnings per limited partnership unit. Basic earnings
      per limited partnership unit is computed by dividing income allocable to
      limited partners by the weighted average number of limited partnership
      units outstanding for the period. No dilutive effects exist for the
      Partnership's limited partnership units. There were no adjustments to
      prior period earnings per share amounts resulting from the implementation
      of this pronouncement.














                                      F-17
<PAGE>   34

                                                                    SCHEDULE III

                 INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES
                       (A CALIFORNIA LIMITED PARTNERSHIP)

             SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                      FOR THE YEAR ENDED DECEMBER 31, 1997

                                   ----------

<TABLE>
<CAPTION>
                                                                    NET CHANGE              GROSS AMOUNT AT WHICH
                                     INITIAL COST           SUBSEQUENT TO ACQUISITION     CARRIED AT CLOSE OF PERIOD
                              ---------------------------  ---------------------------   -----------------------------
                                            BUILDINGS AND                BUILDINGS AND                   BUILDINGS AND
               ENCUMBRANCES      LAND       IMPROVEMENTS      LAND       IMPROVEMENTS       LAND         IMPROVEMENTS 
               -----------    ----------    -------------  ---------     -------------   ----------      -------------
<S>            <C>            <C>           <C>            <C>           <C>             <C>            <C>         
Shadow Ridge
  Meadows      $ 9,742,751    $3,294,260    $ 9,821,589    $(400,000)    $  (997,151)    $2,894,260     $  8,824,438
                                                                                                                    
Mission Park    10,022,451     4,484,105     13,490,802     (300,000)       (708,162)     4,184,105       12,782,640
               -----------    ----------    -----------    ---------     -----------     ----------      -----------
               $19,765,202    $7,778,365    $23,312,391    $(700,000)    $(1,705,313)    $7,078,365      $21,607,078
               ===========    ==========    ===========    =========     ===========     ==========      ===========
</TABLE>


<TABLE>
<CAPTION>
                                                                              LIFE ON WHICH
                                   ACCUMULATED     DATE OF      DATE    DEPRECIATION IN LATEST
                        TOTAL     DEPRECIATION  CONSTRUCTION  ACQUIRED  STATEMENTS IS COMPUTED
                    -----------   ------------  ------------  --------  -----------------------
<S>                 <C>            <C>            <C>         <C>              <C>       
Shadow Ridge
  Meadows           $11,718,698    $3,208,918     Jan. 1988   Nov. 1988        27.5 years

Mission Park         16,966,745     5,373,574     May 1989    Aug. 1989        27.5 years
                    -----------    ----------
                    $28,685,443    $8,582,492
                    ===========    ==========
</TABLE>

(a) Reconciliation of total real estate carrying value for the three years ended
    December 31, 1997:

<TABLE>
<CAPTION>
                                             1997            1996            1995
                                         ------------    ------------    ------------
      <S>                                <C>             <C>             <C>         
      Balance at beginning of year       $ 28,433,411    $ 28,389,029    $ 37,863,984
      Acquisitions                            252,032          44,382          98,273
      Foreclosure of Margarita Summit               -               -      (9,573,228)
                                         ------------    ------------    ------------
      Balance at end of year             $ 28,685,443    $ 28,433,411    $ 28,389,029
                                         ============    ============    ============
</TABLE>

(b) Reconciliation of accumulated depreciation for the three years ended
    December 31, 1997:


<TABLE>
<CAPTION>
                                             1997           1996           1995
                                         -----------    -----------    -----------
      <S>                                <C>            <C>            <C>        
      Balance at beginning of year       $ 7,745,530    $ 6,935,310    $ 9,340,165
      Expense                                836,962        810,220        850,178
      Foreclosure of Margarita Summit              -              -     (3,255,033)
                                         -----------    -----------    -----------
      Balance at end of year             $ 8,582,492    $ 7,745,530    $ 6,935,310
                                         ===========    ===========    ===========
</TABLE>





                                      F-18