UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON, D.C. 20549


                            FORM 10-K


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

          For the fiscal year ended December 31, 1996  

                                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  33-28988 

DBSI PACIFIC INCOME & GROWTH FUND - II A Real Estate Limited Partnership

     State of Organization:  Idaho           Employer ID #:  82-0428903

        1070 N. Curtis Rd., Suite 270, Boise, Idaho  83706

                Telephone number:  (208) 322-5858

   Securities registered pursuant to Section 12(b) of the Act:

          Title of each class      Name of each exchange on which registered 
                N/A                            N/A

   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 
such 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 (Section 229.405 of this chapter) 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 ]

<PAGE>

                        CROSS REFERENCE TO
               DOCUMENTS INCORPORATED BY REFERENCE

Document Incorporated                             Part of Form 10-K

Form S-11, Post Effective                         Part I, Item 1
Amendment #9, File No. 33-28988,
Pgs. 26-29, 54-56, 61-64, 118-140

Form S-11, Post Effective                         Part I, Item 2
Amendment #9, File No. 33-28988,
Pgs. 148a(1) - 148a(16)

Form S-11, Post Effective                         Part III, Items 10 (c) 
Amendment #9, File No. 33-28988,                  and (e)
Pgs. 26-29.

Form S-11, Post Effective                         Part IV, Items 14 (3)  
Amendment #9, File No. 33-28988,                  and (4)
Pgs. 118-140.

                              PART I

Item  1.  Business.
          
          The registrant is a Partnership which was formed for the express      
          purpose of investing in income-producing multi-family residential     
          real properties in the Northwestern United States.  The Partnership   
          filed a Form S-11 registration statement which was declared effective 
          by the SEC on January 10, 1990.  The primary objectives of the        
          Partnership are to:  (1) preserve and protect the limited partners'   
          capital; (2) provide cash distributions to limited partners and (3)   
          obtain long-term appreciation through increases in the value of the   
          Partnership's real estate assets.  

          The general partners of the registrant are DBSI Housing Inc., an    
          Idaho corporation (incorporated in February 1980) and DBSI Realty   
          Partners, an Idaho general partnership (formed in May 1989). The    
          registrant is a limited partnership which was formed as of May 17,    
          1989 under the Idaho Uniform Limited Partnership Act and will         
          continue until December 31, 2039, unless sooner dissolved, in         
          accordance with the Partnership Agreement.  The Partnership Offering
          Circular disclosed the Partnership's intent to sell or refinance its 
          properties within five to ten years of the original offering date, and
          to distribute the proceeds to its partners.  The Partnership elected
          to sell the properties, and has consummated sales on three of the 
          four properties and is actively marketing the fourth.  See documents 
          incorporated by reference and attached hereto.  (Form S-11, Post    
          Effective Amendment #9, File No. 33-28988, Pgs. 26-29, 54-56, 61-64, 
          118-140).

Item  2.  Properties.

          See documents incorporated by reference.  (Form S-11, Post Effective 
          Amendment #9, File No. 33-28988, Pgs. 148a(1) - 148a(16).

Item  3.  Legal Proceedings.

          There were no material pending legal proceedings against the          
          registrant during 1996.  

<PAGE>

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

          Before distributing liquidation proceeds available from the sales, 
          the Partnership offered each limited partner an opportunity to 
          exchange their units in the Partnership for a new class of units 
          within the Partnership.  Approximately 9.6% ($893,160) of the limited 
          partners exchanged their units.  The new class offers a tax deferral 
          and a cumulative annual preferred return of 4% through the end of a 
          ten-year period.  In addition, the holders of the new class of units 
          have the option to put the units to the Partnership after ten years  
          for an amount, in cash, equal to their original capital contribution 
          plus any cumulative unpaid preferred return amounts.  The value of 
          this put is guaranteed by the General Partner.  The General Partner 
          received the rights to future income and liquidation distributions of 
          the limited partners who exchanged their units.  The remaining limited
          partners elected to remain in the Partnership until the liquidation is
          complete.  


                             PART II

Item  5.  Market for Registrant's Common Equity and Related Stockholder
          Matters.

          There is no established public trading market for the Limited
          Partnership Interests of the registrant. 
               
          As of December 31, 1991 the registrant had received the proceeds from
          subscriptions for 9,262 interests.  The offering period ended on      
          December 31, 1991.  

          Distributions to Limited Partners during the years ended December 31,
          1996, 1995 and 1994 totaled $4,027,107, $480,435 and $682,938.  

<TABLE>

Item  6.  Selected Financial Data.

<CAPTION>
                                   Dec. 31,       Dec. 31,       Dec. 31,       Dec. 31,      Dec. 31,              
                                     1992            1993          1994          1995           1996         
                                   __________     __________     __________     __________     __________   
<S>                               <C>            <C>            <C>            <C>            <C>   
Total and other rental income      $2,376,910     $2,377,701     $2,373,954     $2,349,549     $2,019,842                  
Total interest income                  66,348         27,244         14,764          3,272        117,738        
Gain on sale of rental properties                                                               1,606,745  
Net income (loss)                      33,882         (7,691)      (190,713)      (215,148)     1,260,603            

Cash and cash equivalents           1,470,760        192,207        294,265         41,572        286,062    
Rental property                    14,450,373     14,495,644     14,893,542     14,996,503      5,623,446  
Total assets                       15,390,996     13,784,641     13,628,017     12,928,418      8,159,252        

Long term debt                      8,702,599      7,766,202      8,506,409      8,435,881      6,648,920               
Syndication costs                   1,576,090      1,576,464      1,576,464      1,576,464      1,576,464 
Redeemable capital                                                                                560,762          
Partners' capital                   6,529,730      5,812,999      4,887,928      4,192,345        469,422  

</TABLE>

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

Liquidity and Capital Resources

The Partnership generated funds primarily from sales of rental properties, from
the operation of rental properties and to a lesser extent from interest on 
savings and certificates of deposit.

Funds are used for distributions to partners, rental property operating 
expenses, debt service, fixed asset replacements, capital improvements, 
management and professional fees.  The three properties sold for $10,304,243, 
with selling costs of $429,725 and a net carrying value of $7,917,824, resulting
in a total gain on sale of $1,956,694 ($1,606,745 current gain and $349,949 
deferred gain).

<PAGE>

The general partners believe that the Partnership has the liquidity and capital
resources to meet all of its known obligations and commitments.

The cash and cash equivalents position of the Partnership at December 31, 1996
represented approximately $286,062 available for Partnership operations, and 
approximately $22,394 additionally in bank accounts reserved for tax, insurance
and replacements.  There were no external sources of liquidity and there are no
outstanding capital commitments.  The average rate of interest earned on cash
deposits was 5%. 

Cash Flow and Operations

For the years ended December 31, 1996, 1995 and 1994, the projects generated
$103,675, $247,645, and $358,429 of cash from operating activities per the
Statements of Cash Flows.  The following adjustments should be made to the
current year cash flow in order to arrive at an amount which can be compared to
the individual project first year pro forma funds from operations as found in 
the supplements to the prospectus.  First, changes in noncash operating assets
and liabilities should be adjusted to increase or decrease cash flow to the
actual funds generated from operations on an ongoing basis.  Second, mortgage 
debt service payments should be reduced to the anticipated level of mortgage 
loans as shown on the pro forma statements.  Third, cash flow should be reduced 
for normal operational fixed asset purchases.  Finally, on projects sold during 
the year, cash flow should be annualized to a full year for comparisons to the
pro forma.

With the above adjustments, the individual projects generated the following 
amounts of cash flow as a percent of pro forma:

<TABLE>

<CAPTION>
                                                  Weatherstone    Talisman    Sorrento      Dakota
__________________________________________________________________________________________________
<S>                                                   <C>         <C>         <C>         <C>      
Cash flow from operations                              ($1,557)   ($53,576)   $173,690     $30,102   
Changes in current assets and liabilites               (30,918)     11,341      19,834      (7,885)   
                                                  ________________________________________________
Subtotal                                               (32,475)    (42,235)    193,524      22,217    
Add non pro forma interest payments                                             63,246      33,591       
Add non pro forma principal payments                                            13,717       3,734  
Less fixed asset purchases                            (118,185)    (40,225)    (18,612)     (3,152) 
                                                  ________________________________________________
                                                      (150,660)    (82,460)    251,875      56,390  
Annualization factor                                                133.33%     133.33%     240.00%       
                                                  ________________________________________________ 
Annualized                                            (150,660)   (109,947)    335,833      135,336         
Pro forma cash flow                                    112,741      82,450     311,181      179,244

Percent of pro forma                                     -134%       -133%        108%          76% 

</TABLE>

Annualized 1996 total rental property operating revenues of $2,502,824 increased
6.5% from the 1995 total revenue of $2,349,549 and 5.4% over the two years' 
prior 1994 revenue of $2,373,954.  Weatherstone Apartments (the only continuing
property) rental revenue increased in 1996 to $960,195, an 18.4% increase from 
1995 revenue of $811,042 and an 11.5% increase over its two years' prior 1994 
revenue of $861,533.  Weatherstone operating expenses during the same periods 
increased from $837,310 in 1994 and $833,640 in 1995 to $993,107 in 1996, due 
largely to increased maintenance and utilities.  With the increased income, 
Weatherstone reduced its cash flow deficit to near break-even in 1996.  
Interest income increased from $3,272 in 1995 to $117,738 in 1996, due to 
investment of sale proceeds prior to distribution to partners.  Repair and 
maintenance costs of $401,541 in 1996 increased approximately $120,000 due 
primarily to fix-up costs to prepare the rental properties for sale.  

<PAGE>

Following the sale of the three properties in 1996, the Partnership will only 
distribute any cash flow from the remaining property or from the installment 
note payments received in the sale.  The Partnership distributed $4,027,107 to 
limited partners and $395,657 to the General Partner in 1996, primarily from 
rental property sales proceeds of $6,624,519 (net of debt payments of 
$1,984,161) and to a lesser extent from cash flow from operations of $103,675.  
The Partnership distributed $480,435 in 1995, including $247,645 from current 
operations and $232,790 from excess cash reserves.  In 1994 the partnership 
distributed $734,358, including $358,429 from current year operations and 
$375,929 from excess cash reserves.  

Per $1,000 investment (on the basis of a $1,000 investment made at the inception
of the escrow and offering) distributions have been made in the following 
amounts:  escrow period - $58; November 1990 through May 1995 - approximately 
$18 per quarter; August 1995 through October 1996 - $7.50 per quarter.   
Distributions total approximately $440 per $1,000 investment since inception.  
The partial liquidation distribution totalled $448 per $1,000 investment.  
Limited partners who did not elect to exchange their units should expect to 
receive additional liquidation distributions from the installment notes and the 
sale of the fourth property.  

Partnership net income (loss), after depreciation, for 1996, 1995 and 1994 were 
$1,260,603, ($215,148) and ($190,713) respectively; therefore, cash 
distributions in excess of cumulative net income to date have been a return of 
capital.  

Item  8.  The following documents are filed on the pages listed below, as part
          of Part II, Item 8, of this Report.

                             Document                                      Page
                             --------                                      ----
   1.   Financial Statements and Accountants' Report:

            Independent Auditors' Report                                    F-1

        Financial Statements:
            Balance Sheets as of December 31, 1996 and December 31, 1995    F-2

            Statements of Operations for the years ended December 31, 1996,
            December 31, 1995 and December 31, 1994                         F-3

            Statements of Partners' Capital for the years ended December 31,
            1996, December 31, 1995 and December 31, 1994                   F-3

            Statements of Cash Flows for the years ended December 31,
            1996, December 31, 1995 and December 31, 1994                   F-4

   2.   Notes to the Financial Statements (Notes 1-8)              F-5 thru F-10


Item  9.  Changes in and Disagreements with Accountants on Accounting and       
          Financial Disclosure.

          None.

                             PART III

Item 10.  Directors and Executive Officers of the Registrant.

          (a)  Identification of directors.

               There has been no change in the general partners of the          
               Registrant.

<PAGE>
               The following individuals are not directors of the registrant   
               but are directors or partners of the general partners of the    
               registrant.  Consequently the following information concerning  
               their roles as directors or partners in those other entities is 
               being submitted.

               DBSI Housing Inc.:
                    Director - Douglas L. Swenson      Age - 48
                    Term of office - February 1980 to present
                    Other positions - President of DBSI Housing Inc.
                    Founded DBSI in 1979.

                    Director - John D. Foster     Age - 56
                    Term of office - March 1992 to present
                    Other positions - Executive Vice President, Operations
                    Time with firm - 1989 to present

                    Director - Charles E. Hassard      Age - 49
                    Term of office - March 1992 to present
                    Other positions - Executive Vice President, Finance
                    Time with firm - 1984 to present 

                    Director - John Mayeron       Age - 42
                    Term of office - March 1992 to present
                    Other positions - Executive Vice President, Marketing
                    Time with firm - 1990 to present

                    Director - Farrell Bennett    Age - 58
                    Term of office - March 1992 to present
                    Other positions - Vice President, Marketing
                    Time with firm - 1984 to present

                    Director - Walt Mott          Age - 47
                    Term of office - March 1992 to present
                    Other positions - Vice President, Asset Management
                    Time with firm - 1991 to present

               DBSI Realty Partners:
                    Partner - Douglas L. Swenson
                    Age - see above
                    Term of office - May 1989 to present
                    Time with firm - May 1989 to present

          (b)  Identification of executive officers.

               The registrant has two general partners who direct and control  
               the operations of the Partnership.  The officers of those two   
               general partners perform functions and tasks for the registrant 
               similar to those of executives.  Those individuals are Douglas  
               L. Swenson, John D. Foster, and Charles E. Hassard and the ages 
               and other information concerning them are included in Item 10(a)
               above.

          (c)  Identification of certain significant employees.  

               The current principal officers of the Company and the business  
               experience of each in the last five years are as follows:

<PAGE>

               Douglas L. Swenson, age 48, is President of the Company and also
               the founder and current President of the other DBSI companies.  
               Prior to founding the DBSI group of companies, he practiced for 
               three and one-half years as a Certified Public Accountant in   
               Boise, Idaho, with Touche Ross & Co., an international           
               accounting firm, specializing in taxation.  In this capacity, he
               had extensive experience in the analysis of real estate        
               investments including their syndication into limited         
               partnerships.  Prior to joining Touche Ross & Co., he was a   
               practicing Certified Public Accountant with Peat, Marwick,     
               Mitchell and Co. in Houston, Texas, beginning in 1972.    
               Mr. Swenson is a Certified Public Accountant, a real estate   
               licensee, and a direct placement securities principal in various
               states and with the National Association of Securities Dealers. 
               He holds a Master of Accountancy degree from Brigham Young    
               University.

               John D. Foster, age 56, is Executive Vice President, Operations
               of the Company and DBSI Housing Inc.  Prior to joining the DBSI 
               group of companies in 1989, he was managing partnerships and  
               third-party properties for Paul B. Larsen & Associates in    
               Boise, Idaho.  He spent seven years with Boise Cascade        
               Corporation as Manager of the Timberland Resources Planning,   
               responsible for optimizing the financial return on a six-million
               acre timberland base.  He has management experience with other 
               Fortune 500 companies and while on active duty with the Navy was
               responsible for management of all buildings, piers, and grounds
               of the U.S. Naval Station, San Diego, California.  He holds a  
               Bachelor of Science degree from Oklahoma State University and a
               Master of Business Administration degree from the University of  
               Tulsa. 

               Charles E. Hassard, age 49, is Executive Vice President, Finance
               of the Company and DBSI Housing Inc.  Prior to joining the DBSI  
               group of companies in 1984, he was a Certified Public Accountant 
               for seven years with Touche Ross & Co. in San Francisco,         
               California, and Boise, Idaho, specializing in taxation.  In his  
               position, he had extensive experience in analyzing real estate   
               investments and syndications.  Mr. Hassard holds a Master  
               of Accountancy degree from Brigham Young University. 

               John Mayeron, age 42, is Executive Vice President, Marketing of
               the Company and DBSI Housing Inc.  With over ten years of        
               experience in the securities industry, his most recent position  
               was with Kavanaugh Securities before joining DBSI in 1990.  Mr.  
               Mayeron holds a Bachelor's degree from the University of Oregon 
               in Marketing, International Business and Political Science.  He 
               is a member of Phi Beta Kappa and Beta Gamma Sigma.  

               Farrell J. Bennett, age 58, is Vice President, Marketing of the
               Company and DBSI Housing Inc.  Prior to joining the DBSI group  
               of companies in 1984, he was owner-broker of American Realty   
               Corporation in Boise, Idaho, since 1967.  In that position, he 
               analyzed and marketed numerous residential and commercial      
               properties.  Mr. Bennett holds the CRB designation, is a       
               licensed real estate broker and a licensed direct placement    
               securities representative.  His formal education was at the    
               University of Utah.

               Walt Mott, age 47, is Vice President, Asset Management of the
               Company and DBSI Housing Inc.  Prior to joining the DBSI group 
               of companies in 1991, he was with Boise Cascade Corporation for 
               14 years where he served as Manager of Timberland Resources    
               Planning.  In this capacity, Mr. Mott was responsible for the  
               financial analysis of nearly $400,000,000 in timberlands.  He  
               has a background in land sales and acquisitions, as well as    
               experience in finance and accounting.  He holds an A.A.S. degree
               in Computer Science from County College of Morris, a Bachelor's 
               degree from the University of Idaho, a Master's degree       
               emphasizing finance and price theory from the University of    
               Idaho, and a Bachelor's degree in accounting from Boise State
               University.
             
          (d)  Family relationships.

               There are no family relationships between any director,      
               executive officer or person so nominated.

<PAGE>

          (e)  Business experience.

               (1)  Background.  The business experience of the directors and 
                    partners of the general partners and other significant    
                    employees are discussed in the aforementioned Form S-11   
                    Post-Effective Amendment #9 (File No. 33-28988)
                    on pages 26-29 which are incorporated herein by reference.

          (f)  Involvement in certain legal proceedings.

               There are no events listed in Regulation Section 229.401(f) that
               would be material to an evaluation of the ability or integrity 
               of the people listed above.

          (g)  Promoters and control persons.

               There are no items to report in Regulation Section 229.401(g)

Item 11.  Executive Compensation.

               There was no cash, bonus or deferred compensation paid to any
               executive officers by the registrant during the fiscal year of 
               this report.

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

               This item is not applicable to the registrant during the fiscal
               year of this report.

Item 13.  Certain Relationships and Related Transactions.

               See footnote 5 to the financial statements, December 31, 1996  
               (page F-8).


                             PART IV

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

               There have been no reports on form 8-K which were filed in the 
               last quarter of the period covered by this report.    
     
               The following documents are filed as part of this report:

               Exhibits required by Item 601:
                                                                       Page of
                                                                      Form 10-K
                                                                      ---------
          (1)  Financial Statements: 

                    Independent Auditors' Report                          F-1

                    Balance Sheets as of December 31, 1996
                    and December 31, 1995                                 F-2

                    Statements of Operations for the years ended
                    December 31, 1996, December 31, 1995, and
                    December 31, 1994                                     F-3

                    Statements of Partners' Capital for the years
                    ended December 31, 1996, December 31, 1995, and
                    December 31, 1994                                     F-3

<PAGE> 

                    Statements of Cash Flows for the years ended
                    December 31, 1996, December 31, 1995, and
                    December 31, 1994                                     F-4 

                    Notes to the Financial Statements              F-5 thru F-10

          (2)  Schedules:

               All schedules are omitted because they are not required or       
               because the required information is included in the financial
               statements or notes thereto.

          (3)  Articles of Incorporation and by-laws (Partnership
               Agreement) - pages 118-140 of the aforementioned Form
               S-11 Post-Effective Amendment #9 (File No. 33-28988)
               which is incorporated herein by reference.                      
 
          (4)  Instruments defining the rights of security holders,
               including indentures - pages 118-140 of the
               aforementioned Form S-11 Post-Effective Amendment #9
               (File No. 33-28988) which is incorporated herein by
               reference.

          (9)  Voting trust agreement                                      N/A

          (10) Material contracts                                          N/A

          (11) Statement re computation of per share earnings              N/A

          (12) Statements re computation of ratios                         N/A

          (13) Annual report to security holders.  Form 10-Q
               or quarterly report to security holders                     N/A 

          (16) Letter re change in certifying accountant                   N/A 

          (18) Letter re change in accounting principles                   N/A 

          (19) Previously unfiled documents                                N/A

          (21) Subsidiaries of the registrant                              N/A

          (22) Published report regarding matter submitted to
               vote of security holders                                    N/A 

          (23) Consents of experts and counsel                             N/A

          (24) Power of attorney                                           N/A 

          (28) Information from reports furnished to state
               insurance regulatory authorities                            N/A 

          (99) Additional exhibits                                         None

<PAGE>
          
       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.

DBSI PACIFIC INCOME & GROWTH FUND - II
A Real Estate Limited Partnership


by______________________________________                       Date__________
    Charles E. Hassard, Executive Vice President, Finance
    of DBSI Housing Inc., general partner of 
    DBSI PACIFIC INCOME & GROWTH FUND - II
    A Real Estate Limited Partnership

     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.


by______________________________________                       Date__________
    Douglas L. Swenson, President and 
    a Member of the Board of Directors 
    of DBSI Housing Inc., general partner 
    of DBSI PACIFIC INCOME & GROWTH FUND - II
    A Real Estate Limited Partnership


by______________________________________                       Date__________  
    Charles E. Hassard, Executive Vice President, Finance
    and a Member of the Board of Directors
    of DBSI Housing Inc., general partner 
    of DBSI PACIFIC INCOME & GROWTH FUND - II
    A Real Estate Limited Partnership


by______________________________________                       Date__________
    John D. Foster, Executive Vice President, Operations
    and a Member of the Board of Directors
    of DBSI Housing Inc., general partner 
    of DBSI PACIFIC INCOME & GROWTH FUND - II
    A Real Estate Limited Partnership


by______________________________________                       Date__________ 
    Farrell J. Bennett, Vice President, Marketing
    and a Member of the Board of Directors
    of DBSI Housing Inc., general partner 
    of DBSI PACIFIC INCOME & GROWTH FUND - II
    A Real Estate Limited Partnership

     Douglas L. Swenson, John D. Foster, Charles E. Hassard and Farrell J.
Bennett constitute a majority in interest of the Board of Directors of DBSI
Housing Inc. which is a general partner of the registrant.

<PAGE>


INDEPENDENT AUDITORS' REPORT


To the Partners of
  DBSI Pacific Income and Growth Fund - II
  A Real Estate Limited Partnership:


We have audited the accompanying balance sheets of DBSI Pacific Income and
Growth Fund - II, A Real Estate Limited Partnership as of December 31, 1996 and
1995 and the related statements of operations, partners' capital and cash flows
for each of the three years in the period ended December 31, 1996.  These
financial statements are the responsibility of the Partnership's management.
Our responsibility is to express an opinion on these financial statements 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, such financial statements present fairly, in all material
respects, the financial position of DBSI Pacific Income and Growth Fund - II, 
A Real Estate Limited Partnership as of December 31, 1996 and 1995, and the 
results of its operations and its cash flows for each of the three years in the
period ended December 31, 1996, in conformity with generally accepted accounting
principles. 




DELOITTE & TOUCHE LLP

Boise, Idaho
March 14, 1997

<PAGE>

<TABLE>
                                     DBSI PACIFIC INCOME & GROWTH FUND - II
                                       A REAL ESTATE LIMITED PARTNERSHIP
                                         (an Idaho limited partnership)

                                                 BALANCE SHEETS

<CAPTION>

                ASSETS                                           December 31, 1996     December 31, 1995
                                                                 _________________     _________________  
<S>                                                                 <C>                  <C>                             
   
Rental property (Notes 2 and 3):
        Land                                                           $575,000            $1,527,400
        Buildings and improvements                                    4,540,262            12,461,311 
        Furniture and fixtures                                          508,184             1,007,792   
                                                                  ________________     _________________ 
                                                                      5,623,446            14,996,503   
        Less accumulated depreciation                                (1,134,148)           (2,372,813)     
                                                                  ________________     _________________ 
                                                                      4,489,298            12,623,690   
Cash and cash equivalents                                               286,062                41,572   
Accounts receivable                                                      55,635                 7,229    
Prepaid expenses                                                                               12,166        
Reserves                                                                 22,394                41,010   
Tenant security deposits                                                 19,960                84,015    
Note receivable (Note 2)                                              3,241,921     
Other assets (Note 6)                                                    43,982               118,736   
                                                                   _______________     _________________
Total assets                                                         $8,159,252           $12,928,418   


                LIABILITIES AND PARTNERS' CAPITAL

Accounts payable (Note 5)                                               $55,524               $43,624  
Interest payable                                                         54,715                75,466  
Property taxes payable                                                                         10,052
Security deposits payable                                                19,960                50,550 
Notes payable affiliate (Note 5)                                                              120,500  
Mortgages payable (Note 4)                                            6,648,920             8,435,881
Deferred gain on sale of rental property (Note 2)                       349,949  
                                                                     _____________        ______________   
Total liabilities                                                     7,129,068             8,736,073         

Redeemable limited partners' capital (Notes 1 and 7)                    560,762  

Partners' capital (Notes 1 and 7)                                       469,422             4,192,345 
                                                                    ______________        ______________
Total liabilities and capital                                        $8,159,252           $12,928,418 


<FN>
       The Accompanying Notes are an Integral Part of these Financial Statements
</TABLE>

<PAGE>

<TABLE>
                                          DBSI PACIFIC INCOME & GROWTH FUND - II
                                             A REAL ESTATE LIMITED PARTNERSHIP
                                               (an Idaho limited partnership)

                                                 STATEMENTS OF OPERATIONS

<CAPTION>

                                                 Year Ended            Year Ended           Year Ended
                REVENUES                      December 31, 1996     December 31, 1995    December 31, 1994
                                              -----------------     ------------------   ----------------- 
<S>                                                 <C>                 <C>                 <C>  
Tenant rent                                         $1,883,575          $2,244,280          $2,289,103  
Gain on sale of rental property (Note 2)             1,606,745 
Interest income                                        117,738               3,272              14,764 
Other income                                           136,267             105,269              84,851 
                                                   ____________        ____________        ____________  
                                                     3,744,325           2,352,821           2,388,718 


                EXPENSES

Interest                                               763,669             811,968             807,051 
Depreciation                                           396,742             484,263             476,947   
Property tax and insurance                             206,540             223,938             254,219 
Maintenance and repairs                                401,541             281,936             316,597  
Utilities                                              263,975             279,899             267,328 
Administrative                                         166,924             198,457             172,016 
Management fees (Note 5)                                82,097             104,058             106,234  
On-site manager (Note 5)                               127,480             153,922             142,281  
Amortization                                            74,754              29,528              36,758    
                                                    ___________         ___________         ___________ 
                                                     2,483,722           2,567,969           2,579,431  
                                                    ___________         ___________         ___________
Net income (loss)                                   $1,260,603          ($ 215,148)         ($ 190,713)  

Net income (loss) per unit                             $136.10             ($23.23)            ($20.59)         


                                                     STATEMENTS OF PARTNERS' CAPITAL

                                                 Year Ended             Year Ended          Year Ended
                                              December 31, 1996     December 31, 1995    December 31, 1994
                                              -----------------     -----------------    ----------------- 
Beginning capital                                   $4,192,345          $4,887,928          $5,812,999   
Preferred interest transfers                          (533,962)        
Distributions                                       (4,422,764)           (480,435)           (734,358) 
Net income (loss)                                    1,233,803            (215,148)           (190,713)  
                                                   ____________        ____________        ____________  
Ending capital                                        $469,422          $4,192,345          $4,887,928 

<FN>
       The Accompanying Notes are an Integral Part of these Financial Statements

</TABLE>
 
<PAGE>

<TABLE>
                                             DBSI PACIFIC INCOME & GROWTH FUND - II
                                               A REAL ESTATE LIMITED PARTNERSHIP
                                                 (an Idaho limited partnership)

                                                  STATEMENTS OF CASH FLOWS

<CAPTION>

                CASH FLOWS FROM                     Year Ended          Year Ended             Year Ended
                OPERATING ACTIVITIES            December 31, 1996   December 31, 1995      December 31, 1994
                                                -----------------   -----------------      ----------------- 
<S>                                                  <C>                 <C>                   <C>   
Net income (loss)                                   $1,260,603           ($215,148)          ($190,713)  
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
        Depreciation and amortization                  471,496             513,791             513,705 
        Gain on sale of rental property             (1,606,745)   
        Changes in current operating                                                                    
        assets and liabilities:                                                                  
                Accounts receivable                    (48,406)              2,635              (2,880)
                Prepaid expenses                        12,166               7,400              (6,139)  
                Tenant security deposits                64,055              (7,045)             16,216   
                Accounts payable                        11,899             (34,855)             13,689   
                Interest payable                       (20,751)              7,754              17,222  
                Property taxes payable                 (10,052)              1,645              (8,592) 
                Security deposits payable              (30,590)            (28,532)              5,921
                                                      _________           _________           _________ 
Net cash provided by operating activities              103,675             247,645             358,429 

                CASH FLOWS FROM
                INVESTING ACTIVITIES                                                           
                                                                                                
Rental property purchases                             (180,174)           (102,961)           (397,898)  
Decrease in reserves                                    18,616              38,057             124,316   
Proceeds from sales of rental properties             6,624,519  
Proceeds from principal payments on note receivable      8,079
                                                      _________           _________           _________  
Net cash provided by (used in) investing activities  6,471,040             (64,904)           (273,582) 

                                                                                                
                CASH FLOWS FROM
                FINANCING ACTIVITIES                                                            
                                                                                                
Decrease (increase) in other assets                                         (4,971)             11,362  
Advances from affiliate                                 76,700             120,500
Repayments to affiliate                               (197,200)
Principal payments on mortgages                     (1,786,961)            (70,528)            (59,793)
Distributions to partners                           (4,422,764)           (480,435)           (734,358) 
Proceeds from financing                                                                        800,000    
                                                     __________           _________          __________    
Net cash provided by (used in)
financing activities                                 (6,330,225)          (435,434)             17,211 
                                                     ___________          __________        ___________
Net increase (decrease) in
cash and cash equivalents                               244,490           (252,693)            102,058 
Cash and cash equivalents at
beginning of period                                      41,572            294,265             192,207
                                                     __________           __________         __________ 
Cash and cash equivalents at end of period             $286,062            $41,572            $294,265   

</TABLE>

     In a non cash transaction (not included above), the Partnership received a
     $3,250,000 installment note from the sale of Talisman Apartments.  

[FN]
     The Accompanying Notes are an Integral Part of these Financial Statements

<PAGE>

                      DBSI PACIFIC INCOME & GROWTH FUND - II
                        A REAL ESTATE LIMITED PARTNERSHIP
                          (an Idaho limited partnership)

                          NOTES TO FINANCIAL STATEMENTS
              For the Years Ended December 31, 1996, 1995, and 1994


NOTE 1.  SUMMARY OF PARTNERSHIP ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Partnership Organization.  

DBSI Pacific Income & Growth Fund - II A Real Estate Limited Partnership, was
formed on May 17, 1989 with general partners DBSI Housing Inc., an Idaho
corporation, and DBSI Realty Partners, an Idaho general partnership.  The
Partnership was in the development stage through January 9, 1990 and in the
offering stage through December 31, 1991.  The business purpose of the
Partnership is to acquire and operate leveraged multi-family housing projects
in the Western United States.  The Partnership Offering Circular disclosed the 
Partnership's intent to sell or refinance its properties within five to ten 
years of the original offering date, and to distribute the proceeds to its 
partners.  The Partnership elected to sell the properties, and has consummated 
sales on three of its four properties and is actively marketing the fourth (See 
Note 2).  The partnership agreement provides that the Partnership will be 
dissolved no later than December 31, 2039, unless sooner terminated as 
provided in the agreement.

Operating profits and losses exclusive of losses from the sale or disposition of
Partnership properties, and cash distributions, are allocated 98% to limited 
partners and 2% to general partners.  After the limited partners have received
distributions equal to a 7% annual return on their capital contributions 
the general partners receive additional distributions equal to 5% of total 
distributions.  Proceeds from sale or refinancing are to be distributed, 
generally, 100% to the limited partners until they have received cumulative 
distributions equal to their capital contributions, then 85% to the limited 
partners and 15% to the general partners.  However, the limited partners must 
receive cumulative distributions from operations and sale or refinancing 
proceeds equal to their capital contributions plus a 10% per annum return 
thereon before the general partners receive any sale or refinancing proceeds.  

Before distributing liquidation proceeds available from the sales, the 
Partnership offered each limited partner an opportunity to exchange their 
units in the Partnership for a new class of units within the Partnership.  
Approximately 9.6% ($893,160) of the limited partners voted to exchange their 
units.  The new class offers a tax deferral and a cumulative annual preferred 
return of 4% through the end of a ten-year period.  In addition, the holders 
of the new class of units have the option to put the units to the Partnership 
after ten years, for an amount, in cash, equal to their original capital 
contribution plus any cumulative unpaid return amounts.  The value of this put 
is guaranteed by the General Partner.  The General Partner received the rights 
to future income and liquidation distributions of the limited patners who 
exchanged their units.  The remaining limited partners elected to receive 
liquidation proceeds under the initial partnership agreement.  

Significant Accounting Policies.  

The balance sheets include only those assets, liabilities, and partners'
capital which relate to the business of the Partnership and do not include
any assets, liabilities, revenues or expenses attributable to the partners'
activities.  No partners receive salaries from the Partnership for services. 
No provision has been made for federal and state income taxes since these taxes
are the personal responsibility of the partners. 

<PAGE>

Rental property is recorded at cost.  Depreciation is computed for all assets
over their estimated useful lives as follows:  buildings and structural
improvements, 15 to 32 years; furniture and fixtures, 5 to 12 years. 
Expenditures for maintenance and repairs are charged to operating expenses as
incurred.  Mortgage loan fees are amortized over the estimated life of the
mortgage notes. 

Cash and cash equivalents include cash in banks (except for security deposits
and reserve bank accounts).  Reserves consist of bank deposits for repairs and
replacements, property taxes, insurance, and Partnership reserves.

The estimated fair value of cash and cash equivalents, accounts receivable, 
notes receivable, accounts payable, interest payable, security deposits, 
notes payable, and mortgages payable approximates their carrying amounts.  

The preparation of the Partnership's 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 the financial
statements and the reported amounts of revenues and expenses during the
reporting period.  Actual results could differ from those estimates.

The Financial Accounting Standards Board's Statement of Financial Accounting
Standards No. 121, Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to be Disposed Of, requires management to review long-lived
assets for impairment whenever events or changes in circumstances indicate that
the carrying amount of the assets may not be recoverable or that management 
intends to dispose of them.  Such assets are required to be adjusted to fair 
value minus estimated selling costs if the value is less than carrying value 
minus estimated selling costs.  The Partnership's remaining rental property 
appraised at an amount in excess of net carrying value minus selling costs, 
therefore no adjustment is considered necessary.  

NOTE 2.   SALE OF RENTAL PROPERTIES

The Partnership acquired three properties during 1990;  Weatherstone 
Apartments, an existing 138-unit project located in Silverdale (Kitsap 
County), Washington; Sorrento View Apartements, an existing 80-unit project, 
and Dakota Station Apartments, an existing 40-unit project, both located in 
the Beaverton/Tigard (Portland), Oregon metropolitan area.  In October 1991 
the Partnership purchased a fourth property, Talisman Apartments, an existing 
96-unit project located in Olympia, Washington.  

During 1996, the Partnership sold three of the properties to unrelated third 
parties.  Dakota Station and Sorrento View were sold for cash.  Talisman was 
sold for cash and an installment note receivable of $3,250,000, payable in 
monthly installments of $26,050 including interest at 8.25% until October 
1998, monthly installments of $26,050 including interest at 8.50% until 
October 2000, and monthly installments of $26,345 including interest of 8.75% 
until November 15, 2001, when the full balance of approximately $2,997,000 is 
due.  The note is collateralized by the Talisman property.  The $349,949 
portion of the gain related to the proceeds to be received from note payments 
is deferred and will be recognized on a pro rata basis as payments are 
received.  Gain and proceeds from the sales are as follows:  

<TABLE>

<CAPTION>                               Dakota Station      Talisman      Sorrento View     Total
                                        --------------     ----------     -------------  -----------
<S>                                         <C>           <C>             <C>            <C>
Sale date                                 June 5, 1996   Sept. 27, 1996   Oct. 16, 1996

Sale price                                  $2,080,000     $4,204,243     $4,020,000     $10,304,243
Costs of sale                                 (110,620)      (194,920)      (124,185)       (429,725)
                                            ----------     ----------     ----------     -----------
Proceeds from sale                           1,969,380      4,009,323      3,895,815       9,874,518
Net carrying value at date of sale          (1,525,678)    (3,548,687)    (2,843,459)     (7,917,825)
Deferred gain related to installment note                    (349,949)                      (349,949)
                                            ----------     ----------     ----------     -----------
Gain on property sales recognized in 1996      443,702        110,687      1,052,356       1,606,745
                                            ==========     ==========     ==========     ===========

Proceeds from sale                           1,969,380      4,009,323      3,895,815       9,874,518
Prorations taken from closing                  (38,239)       (48,053)       (61,591)      (147,883)
Note repayment                                (779,341)                     (941,483)     (1,720,824)
Installment note received                                  (3,250,000)                    (3,250,000)
                                            ----------     ----------     ----------     -----------
Net cash at sale date                       $1,151,800     $  711,270     $2,892,741     $ 4,755,811
                                            ==========     ==========     ==========     =========== 
</TABLE>

<PAGE>

Distributions of $3,749,198 to the limited partners and $395,657 to the 
General Partner (related to exchanged interests - see Note 1) were made on 
November 1, 1996 from the proceeds.  A short-term working capital note of 
$197,200 due to an affiliate of the General Partner was also paid from the 
proceeds.  

NOTE 3.  RENTAL PROPERTY

The following schedules detail the activity in rental property assets and
accumulated depreciation. 

<TABLE>

<CAPTION>
                                            Beginning                                Ending 
       Rental Property                      Balance      Additions   Disposals      Balance 
       -------------------------------------------------------------------------------------- 
                                 
       <S>                                  <C>           <C>       <C>           <C>
       Land                                 $ 1,527,400                           $ 1,527,400
       Buildings and improvements            12,410,992   $ 50,319                 12,461,311
       Furniture and fixtures                   955,150     52,642                  1,007,792
                                            -------------------------------------------------
       Total year ended December 31, 1995   $14,893,542   $102,961                $14,996,503 
                                            ================================================= 
                                    
       Land                                 $ 1,527,400              $  952,400   $   575,000 
       Buildings and improvements            12,461,311   $ 28,997    7,950,046     4,540,262
       Furniture and fixtures                 1,007,792    151,177      650,785       508,184
                                            -------------------------------------------------
       Total year ended December 31, 1996   $14,996,503   $180,174   $9,553,231   $ 5,623,446


                                            Beginning                                Ending 
       Accumulated Depreciation             Balance      Additions     Disposals    Balance  
       ______________________________________________________________________________________
       Buildings and improvements           $1,535,781    $386,123                 $1,921,904 
       Furniture and fixtures                  352,770      98,139                    450,909
                                            -------------------------------------------------
       Total year ended December 31, 1995   $1,888,551    $484,262                 $2,372,813
                                            =================================================

       Buildings and improvements           $1,921,904    $309,912   $1,329,171    $  902,645
       Furniture and fixtures                  450,909      86,829      306,235       231,503
                                            -------------------------------------------------                            
       Total year ended December 31, 1996   $2,372,813    $396,741   $1,635,406    $1,134,148
                                            =================================================
</TABLE>                                                                 
                                     
NOTE 4. MORTGAGES PAYABLE

A mortgage payable of $3,875,000 to Pacific First Federal Savings Bank was used
in the purchase of Weatherstone Apartments in March, 1990.  The balance of
$3,756,344 as of December 31, 1996 and $3,779,445 as of December 31, 1995 bears
interest at 9.875% and requires monthly payments of $32,942 through April 1,
2000 when the remaining balance of approximately $3,660,621 is due.  

In October, 1991, the Partnership purchased Talisman Apartments by executing a
mortgage loan in the amount of $3,000,000.  The mortgage note in the current
amount of $2,892,576 at December 31, 1996, and a balance of $2,918,151 as of 
December 31, 1995 is held by the State of Washington, State Investment Board, 
and requires payments of $26,050 monthly with interest charged at 9.875%.  
The entire balance of the loan is due in ten years (November, 2001) when the 
approximate balance will be $2,722,795.  The loan is secured by the underlying
property which has been sold to a third party (See Note 2).  The loan may not be
prepaid during the first five years of the loan period.  During the second five 
years of the loan period it may be prepaid subject to the greater of a yield 
maintenance prepayment penalty or a minimum 2% prepayment penalty.  

A first deed of trust loan of approximately $998,000 to Canada Life Assurance
Company was in place and required monthly payments of $7,996 with interest at 
8.375%, until it was repaid upon the sale of the property on October 16, 1996. 

An 8.25% $800,000 loan from Canada Life Assurance Co. secured by the Dakota
Station Apartments was obtained on April 28, 1994 to finance six to eighteen
additional units at Weatherstone Apartments.  The loan was for five years with a
25-year amortization.  The loan required monthly payments of $6,308 until it 
was repaid upon sale of the property on June 5, 1996.  

<PAGE>

<TABLE>

The following schedule details principal payments on outstanding mortgages as
of December 31, 1996: 

<CAPTION>
                                                                  
Project          1997      1998      1999       2000      2001      Thereafter      Total    
-------------------------------------------------------------------------------------------
<S>            <C>       <C>       <C>       <C>         <C>        <C>          <C>          
Weatherstone   $25,500   $28,135   $31,042   $3,671,667      -0-           -0-   $3,756,344
Talisman        28,218    31,134    34,352       37,593  $41,139    $2,720,140    2,892,576
               ----------------------------------------------------------------------------
               $53,718   $59,269   $65,394   $3,709,260  $41,139    $2,720,140   $6,648,920
               ============================================================================

</TABLE>
                                                                                
Interest paid on all debts for cash flow purposes during 1996, 1995, and 1994 
was $784,420, $809,570, and $788,218.    


NOTE 5.  RELATED PARTY TRANSACTIONS

The Partnership borrowed $197,200 through the second quarter of 1996 from an
affiliate of the General Partner.  This loan bears interest at the General
Partner's bank borrowing rate of prime plus 1.5% (10% as of December 31, 1996).
The loan proceeds provided funds for short-term operating cash flow needs of
the Seattle area projects and to enable the Partnership to maintain 
distribution rates following the lower than anticipated operating cash flow 
from these properties.  The note was repaid from proceeds of the Dakota 
Station property sale on June 5, 1996.  

As described in the partnership agreement, affiliates of the general partner
receive compensation and fees in connection with the management of the
Projects.  Such fees totaled $10,535 for 1996, $104,058 for 1995, and $106,234 
for 1994, and were paid to affiliates of general partner DBSI Housing Inc.  
DBSI Housing Inc. was reimbursed for $187, $153,922, and $142,281 of payroll
costs for on-site managers in 1996, 1995, and 1994.   

Amounts due to related parties included in Accounts Payable at December 31
were for DBSI Realty Corp. (affiliate of DBSI Housing Inc.), administrative/
office supplies expense as follows:  $1,211 for 1996, $1,547 for 1995, and 
$111 for 1994.  

NOTE 6.  OTHER ASSETS

Other assets and accumulated amortization at December 31, 1996 consisted of 
loan fees of $141,250, less amortization of $97,268.  

<PAGE>
                                                                                
NOTE 7.  PARTNERS' CAPITAL

The following schedule details the capital activity and allocations between the
redeemable limited, limited and general partners during the periods reported:  

<TABLE>

<CAPTION>
                              Redeemable                                          Syndication &
                               Limited      Limited     General        Total       Unallocated
                               Partners     Partners    Partners     Allocated      Capital         Total
                               ________   ________________________________________________________________
<S>                            <C>        <C>          <C>          <C>          <C>            <C>           
Balance January 1, 1994                   $7,561,227   $(171,764)   $7,389,463   $(1,576,464)   $5,812,999 
Net Loss                                    (186,879)     (3,834)     (190,713)                   (190,713)
Distributions to Partners                   (682,938)    (51,420)     (734,358)                   (734,358)
                                          ________________________________________________________________ 
Balance December 31, 1994                  6,691,410    (227,018)    6,464,392    (1,576,464)    4,887,928 
Net Loss                                    (210,739)     (4,409)     (215,148)                   (215,148)
Distributions to Partners                   (480,435)                 (480,435)                   (480,435)
                                          ________________________________________________________________
Balance December 31, 1995                  6,000,236    (231,427)    5,768,809    (1,576,464)    4,192,345
1996 quarterly distributions                (277,912)                 (277,912)                   (277,912)
Preferred interest transfer    $528,410     (528,410)                 (528,410)                   (528,410) 
Liquidating distributions                 (3,749,195)   (395,657)   (4,144,852)                 (4,144,852)
Net income                       26,800    1,116,268     117,535     1,233,803                   1,233,803
Preferred return                  5,552                   (5,552)       (5,552)                     (5,552)
                               --------   -----------------------------------------------------------------
Balance December 31, 1996      $560,762   $2,560,987   ($515,101)   $2,045,886   ($1,576,464)   $  469,422
                               ========   ==========   =========    ==========   ===========    ==========  

</TABLE>

<PAGE>
 
NOTE 8.  NET INCOME (LOSS) FROM RENTAL PROPERTIES

       The following schedule details separate rental property and partnership 
operations for the year ended December 31, 1996.  

<TABLE>

<CAPTION>
                          _________________________________________________________________________________ 
                          Weatherstone    Talisman   Sorrento View  Dakota Station
Revenues:                  Apartments    Apartments    Apartments     Apartments   Partnership      Total
                          ---------------------------------------------------------------------------------
<S>                        <C>             <C>           <C>           <C>         <C>           <C>     
Tenant rent                $  873,656      $439,572      $457,635      $112,712                  $1,883,575
Interest income                   437           713           859           554    $  115,175       117,738
Other income                   86,539        17,806        22,854         9,013            55       136,267
Gain on sale of rental property                                                     1,606,745     1,606,745
                           -------------------------------------------------------------------------------- 
                              960,632       458,091       481,348       122,279     1,721,975     3,744,325

Expenses:

Interest                      371,799       191,550        63,246        33,591       103,483       763,669
Depreciation                  186,469        90,438        93,701        26,134                     396,742
Property tax and insurance     92,385        55,078        44,901        14,176                     206,540
Maintenance and repairs       230,421       102,408        49,295        19,417                     401,541
Utilities                     132,939        61,124        53,898        16,014                     263,975
Administration                 72,006        38,632        23,318         5,544        27,424       166,924
Management fees                33,752        16,912        24,037         7,396                      82,097
On-site manager                59,805        34,622        29,129         3,924                     127,480
Amortization                                                                           74,754        74,754
                           -------------------------------------------------------------------------------- 
                            1,179,576       590,764       381,525       126,196       205,661     2,483,722
                           -------------------------------------------------------------------------------- 
Net income (loss)          ($ 218,944)    ($132,673)     $ 99,823      ($ 3,917)   $1,516,314    $1,260,603 
                           ================================================================================ 

</TABLE>