**Exhibit 13**

 

FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

 

**BOSTON CAPITAL TAX CREDIT FUND II**

**LIMITED PARTNERSHIP -**

**SERIES 7, 9 THROUGH 12, AND 14**

 

MARCH 31, 2008 AND 2007

 

----

 

TABLE OF CONTENTS

 
|                                                     |                                                       | **PAGE** |
|----------------------------------------------------------|------------------------------------------------------------|----------|
|                                                     |                                                       |     |
| REPORT  OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | F-3                                                        |
|                                                     |                                                       |     |
| FINANCIAL  STATEMENTS                                    |                                                       |
|                                                     |                                                       |     |
|                                                     | BALANCE  SHEETS                                            | F-5      |
|                                                     |                                                       |     |
|                                                     | STATEMENTS  OF OPERATIONS                                  | F-12     |
|                                                     |                                                       |     |
|                                                     | STATEMENTS  OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) | F-19     |
|                                                     |                                                       |     |
|                                                     | STATEMENTS  OF CASH FLOWS                                  | F-23     |
|                                                     |                                                       |     |
|                                                     | NOTES  TO FINANCIAL STATEMENTS                             | F-30     |

 

Schedules not listed are omitted because of the absence of theconditions under which they are required or because the information is includedin the financial statements or the notes thereto.

 

F-2

----

 

REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Partners

Boston Capital TaxCredit Fund II

   Limited Partnership

 

Wehave audited the accompanying balance sheets of Boston Capital Tax Credit FundII Limited Partnership, including Boston Capital Tax Credit Fund II LimitedPartnership - Series 7, Series 9 through 12, and Series 14, intotal and for each series, as of March 31, 2008 and 2007, and the relatedstatements of operations, changes in partners’ capital (deficit) and cash flowsfor the total partnership and for each of the series for each of the years inthe two-year period ended March 31, 2008. These financial statements are the responsibility of the partnership’smanagement.  Our responsibility is toexpress an opinion on these financial statements based on our audits.  We did not audit the financial statements ofcertain operating limited partnerships which investments represent $1,334,482and $310,119 of the total partnership assets as of March 31, 2008 and2007, respectively, and $266,690 and $105,192 of the total partnership loss forthe years ended March 31, 2008 and 2007, respectively; of the assets for Series 7as of March 31, 2008 and 2007, $0 and $0, respectively, and of the lossfor Series 7 for the years ended March 31, 2008 and 2007, $0 and $0,respectively; of the assets for Series 9 as of March 31, 2008 and2007, $0 and $0, respectively, and of the loss for Series 9 for the yearsended March 31, 2008 and 2007, $0 and $0, respectively; of the assets for Series 10as of March 31, 2008 and 2007, $0 and $0, respectively, and of the lossfor Series 10 for the years ended March 31, 2008 and 2007, $0 and $0,respectively; of the assets for Series 11 as of March 31, 2008 and2007, $1,129,193 and $0, respectively, and of the loss for Series 11 forthe years ended March 31, 2008 and 2007, $164,076 and $0, respectively; ofthe assets for Series 12 as of March 31, 2008 and 2007, $0 and $0,respectively, and of the loss for Series 12 for the years ended March 31,2008 and 2007, $0 and $0, respectively; and of the assets for Series 14 asof March 31, 2008 and 2007, $205,289 and $310,119, respectively, and ofthe loss for Series 14 for the years ended March 31, 2008 and 2007,$102,614 and $105,192, respectively. Those statements were audited by other auditors, whose reports have beenfurnished to us, and our opinion, insofar as it relates to those operatinglimited partnerships, is based solely on the reports of the other auditors.

 

Weconducted our audits in accordance with the standards of the Public CompanyAccounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement.  The partnershiphas determined that it is not required to have, nor were we engaged to perform,an audit of its internal control over financial reporting.  Our audit 

 

F-3

----

 

included consideration of internal control overfinancial reporting as a basis for designing audit procedures that areappropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the partnership’s internal control overfinancial reporting.  Accordingly, weexpress no such opinion.  An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation.  Webelieve that our audits and the reports of the other auditors provide areasonable basis for our opinion.

 

In ouropinion, based on our audits and the reports of the other auditors, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Boston Capital Tax Credit Fund II L.P. - Series 7,Series 9 through 12, and Series 14, in total and for each series, asof March 31, 2008 and 2007, and the results of its operations and its cashflows for the total partnership and for each of the series for each of theyears in the two-year period ended March 31, 2008, in conformity withaccounting principles generally accepted in the United States of America.

 

 

**/s/ Reznick Group, P.C.**

REZNICK GROUP, P.C.

 

Bethesda, Maryland

July 14, 2008

 

F-4

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS

 

March 31, 2008 and 2007

 
| ** **                                                                                                                                                                                                                | ** ** | **Total**   | ** ** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------|------------|
| ** **                                                                                                                                                                                                                | ** ** | **2008**    | ** ** | **2007** | ** ** |
| ASSETS                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                      |       |        |       |   |   |
| INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS                                                                                                                                                                             |       | $           | 2,010,067  |   | $ | 2,790,211 |   |
|                                                                                                                                                                                                                      |       |        |       |   |   |
| OTHER ASSETS                                                                                                                                                                                                              |       |        |       |   |   |
| Cash and cash equivalents                                                                                                                                                                                                 |       | 1,085,277   |       | 2,005,864 |   |
| Deferred acquisition costs, net of accumulated amortization                                                                                                                                                               |       | 504,471     |       | 539,263 |   |
| Other                                                                                                                                                                                                                     |       | 14,138      |       | 343,758 |   |
|                                                                                                                                                                                                                      |       |        |       |   |   |
|                                                                                                                                                                                                                      |       | $           | 3,613,953  |   | $ | 5,679,096 |   |
|                                                                                                                                                                                                                      |       |        |       |   |   |
| LIABILITIES  AND PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                         |
|                                                                                                                                                                                                                      |       |        |       |   |   |
| LIABILITIES                                                                                                                                                                                                               |       |        |       |   |   |
| Accounts payable - trade                                                                                                                                                                                                  |       | $           | 10,669     |   | $ | 8,750 |   |
| Accounts payable - affiliates                                                                                                                                                                                             |       | 25,821,618  |       | 27,681,628 |   |
| Capital contributions payable                                                                                                                                                                                             |       | 201,653     |       | 236,345 |   |
|                                                                                                                                                                                                                      |       |        |       |   |   |
|                                                                                                                                                                                                                      |       | 26,033,940  |       | 27,926,723 |   |
|                                                                                                                                                                                                                      |       |        |       |   |   |
| PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                                          |       |        |       |   |   |
| Assignor limited partner                                                                                                                                                                                                  |       |        |       |   |   |
| Units of limited partnership interest consisting of 20,000,000  authorized beneficial assignee certificates (BAC), $10 stated value,  18,679,738 issued and outstanding to the assignees at March 31, 2008 and  2007 |       | —      |       | — |   |
| Limited Partners                                                                                                                                                                                                          |       |        |       |   |   |
| Units of beneficial interest of the limited partnership interest of  the assignor limited partner, 18,679,738 issued and outstanding at  March 31, 2008 and 2007                                                     |       | (20,642,748 | )          | (20,472,111 | ) |
| General partner                                                                                                                                                                                                           |       | (1,777,239  | )          | (1,775,516 | ) |
|                                                                                                                                                                                                                      |       |        |       |   |   |
|                                                                                                                                                                                                                      |       | (22,419,987 | )          | (22,247,627 | ) |
|                                                                                                                                                                                                                      |       |        |       |   |   |
|                                                                                                                                                                                                                      |       | $           | 3,613,953  |   | $ | 5,679,096 |   |

 

F-5

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2008 and 2007

 
| ** **                                                                                                                                                                                                               | ** ** | **Series 7** | ** ** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------------|------------|
| ** **                                                                                                                                                                                                               | ** ** | **2008**          | ** ** | **2007** | ** ** |
| ASSETS                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS                                                                                                                                                                            |       | $                 | —     |   | $ | — |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| OTHER ASSETS                                                                                                                                                                                                             |       |              |       |   |   |
| Cash and cash equivalents                                                                                                                                                                                                |       | 157,566           |       | 187,030 |   |
| Deferred acquisition costs, net of accumulated amortization                                                                                                                                                              |       | —            |       | — |   |
| Other                                                                                                                                                                                                                    |       | —            |       | 326,920 |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | $                 | 157,566    |   | $ | 513,950 |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| LIABILITIES  AND PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                        |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| LIABILITIES                                                                                                                                                                                                              |       |              |       |   |   |
| Accounts payable - trade                                                                                                                                                                                                 |       | $                 | 381        |   | $ | — |   |
| Accounts payable - affiliates                                                                                                                                                                                            |       | 340,032           |       | 833,517 |   |
| Capital contributions payable                                                                                                                                                                                            |       | —            |       | — |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | 340,413           |       | 833,517 |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                                         |       |              |       |   |   |
| Assignor limited partner                                                                                                                                                                                                 |       |              |       |   |   |
| Units of limited partnership interest consisting of 20,000,000  authorized beneficial assignee certificates (BAC), $10 stated value,  1,036,100 issued and outstanding to the assignees at March 31, 2008 and  2007 |       | —            |       | — |   |
| Limited Partners                                                                                                                                                                                                         |       |              |       |   |   |
| Units of beneficial interest of the limited partnership interest of  the assignor limited partner, 1,036,100 issued and outstanding at  March 31, 2008 and 2007                                                     |       | (93,423           | )          | (228,776 | ) |
| General partner                                                                                                                                                                                                          |       | (89,424           | )          | (90,791 | ) |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | (182,847          | )          | (319,567 | ) |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | $                 | 157,566    |   | $ | 513,950 |   |

 

F-6

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2008 and 2007

 
| ** **                                                                                                                                                                                                               | ** ** | **Series 9** | ** ** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------------|------------|
| ** **                                                                                                                                                                                                               | ** ** | **2008**          | ** ** | **2007** | ** ** |
| ASSETS                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS                                                                                                                                                                            |       | $                 | —     |   | $ | — |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| OTHER ASSETS                                                                                                                                                                                                             |       |              |       |   |   |
| Cash and cash equivalents                                                                                                                                                                                                |       | 149,621           |       | 141,756 |   |
| Deferred acquisition costs, net of accumulated amortization                                                                                                                                                              |       | 5,604             |       | 5,991 |   |
| Other                                                                                                                                                                                                                    |       | 14,138            |       | 14,138 |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | $                 | 169,363    |   | $ | 161,885 |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| LIABILITIES  AND PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                        |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| LIABILITIES                                                                                                                                                                                                              |       |              |       |   |   |
| Accounts payable - trade                                                                                                                                                                                                 |       | $                 | 381        |   | $ | — |   |
| Accounts payable - affiliates                                                                                                                                                                                            |       | 6,336,281         |       | 6,159,320 |   |
| Capital contributions payable                                                                                                                                                                                            |       | —            |       | — |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | 6,336,662         |       | 6,159,320 |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                                         |       |              |       |   |   |
| Assignor limited partner                                                                                                                                                                                                 |       |              |       |   |   |
| Units of limited partnership interest consisting of 20,000,000  authorized beneficial assignee certificates (BAC), $10 stated value,  4,178,029 issued and outstanding to the assignees at March 31, 2008 and  2007 |       | —            |       | — |   |
| Limited Partners                                                                                                                                                                                                         |       |              |       |   |   |
| Units of beneficial interest of the limited partnership interest of  the assignor limited partner, 4,178,029 issued and outstanding at  March 31, 2008 and 2007                                                     |       | (5,770,788        | )          | (5,602,623 | ) |
| General partner                                                                                                                                                                                                          |       | (396,511          | )          | (394,812 | ) |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | (6,167,299        | )          | (5,997,435 | ) |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | $                 | 169,363    |   | $ | 161,885 |   |

 

F-7

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2008 and 2007

 
| ** **                                                                                                                                                                                                              | ** ** | **Series 10** | ** ** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                                                                                                                                              | ** ** | **2008**           | ** ** | **2007** | ** ** |
| ASSETS                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                    |       |               |       |   |   |
| INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS                                                                                                                                                                           |       | $                  | 126,503    |   | $ | 234,798 |   |
|                                                                                                                                                                                                                    |       |               |       |   |   |
| OTHER ASSETS                                                                                                                                                                                                            |       |               |       |   |   |
| Cash and cash equivalents                                                                                                                                                                                               |       | 152,374            |       | 312,676 |   |
| Deferred acquisition costs, net of accumulated amortization                                                                                                                                                             |       | 29,873             |       | 31,933 |   |
| Other                                                                                                                                                                                                                   |       | —             |       | — |   |
|                                                                                                                                                                                                                    |       |               |       |   |   |
|                                                                                                                                                                                                                    |       | $                  | 308,750    |   | $ | 579,407 |   |
|                                                                                                                                                                                                                    |       |               |       |   |   |
| LIABILITIES  AND PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                       |
|                                                                                                                                                                                                                    |       |               |       |   |   |
| LIABILITIES                                                                                                                                                                                                             |       |               |       |   |   |
| Accounts payable - trade                                                                                                                                                                                                |       | $                  | 381        |   | $ | — |   |
| Accounts payable - affiliates                                                                                                                                                                                           |       | 2,939,452          |       | 3,477,877 |   |
| Capital contributions payable                                                                                                                                                                                           |       | —             |       | — |   |
|                                                                                                                                                                                                                    |       |               |       |   |   |
|                                                                                                                                                                                                                    |       | 2,939,833          |       | 3,477,877 |   |
|                                                                                                                                                                                                                    |       |               |       |   |   |
| PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                                        |       |               |       |   |   |
| Assignor limited partner                                                                                                                                                                                                |       |               |       |   |   |
| Units of limited partnership interest consisting of 20,000,000  authorized beneficial assignee certificates (BAC), $10 stated value, 2,428,925  issued and outstanding to the assignees at March 31, 2008 and 2007 |       | —             |       | — |   |
| Limited Partners                                                                                                                                                                                                        |       |               |       |   |   |
| Units of beneficial interest of the limited partnership interest of  the assignor limited partner, 2,428,925 issued and outstanding at  March 31, 2008 and 2007                                                    |       | (2,409,859         | )          | (2,674,572 | ) |
| General partner                                                                                                                                                                                                         |       | (221,224           | )          | (223,898 | ) |
|                                                                                                                                                                                                                    |       |               |       |   |   |
|                                                                                                                                                                                                                    |       | (2,631,083         | )          | (2,898,470 | ) |
|                                                                                                                                                                                                                    |       |               |       |   |   |
|                                                                                                                                                                                                                    |       | $                  | 308,750    |   | $ | 579,407 |   |

 

F-8

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2008 and 2007

 
| ** **                                                                                                                                                                                                               | ** ** | **Series 11** | ** ** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                                                                                                                                               | ** ** | **2008**           | ** ** | **2007** | ** ** |
| ASSETS                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS                                                                                                                                                                            |       | $                  | 1,172,660  |   | $ | 1,568,461 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| OTHER ASSETS                                                                                                                                                                                                             |       |               |       |   |   |
| Cash and cash equivalents                                                                                                                                                                                                |       | 149,771            |       | 211,850 |   |
| Deferred acquisition costs, net of accumulated amortization                                                                                                                                                              |       | 21,964             |       | 23,479 |   |
| Other                                                                                                                                                                                                                    |       | —             |       | — |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | $                  | 1,344,395  |   | $ | 1,803,790 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| LIABILITIES  AND PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                        |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| LIABILITIES                                                                                                                                                                                                              |       |               |       |   |   |
| Accounts payable - trade                                                                                                                                                                                                 |       | $                  | 411        |   | $ | 5,000 |   |
| Accounts payable - affiliates                                                                                                                                                                                            |       | 2,938,146          |       | 3,797,133 |   |
| Capital contributions payable                                                                                                                                                                                            |       | —             |       | 22,528 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | 2,938,557          |       | 3,824,661 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                                         |       |               |       |   |   |
| Assignor limited partner                                                                                                                                                                                                 |       |               |       |   |   |
| Units of limited partnership interest consisting of 20,000,000  authorized beneficial assignee certificates (BAC), $10 stated value,  2,489,599 issued and outstanding to the assignees at March 31, 2008 and  2007 |       | —             |       | — |   |
| Limited Partners                                                                                                                                                                                                         |       |               |       |   |   |
| Units of beneficial interest of the limited partnership interest of  the assignor limited partner, 2,489,599 issued and outstanding at  March 31, 2008 and 2007                                                     |       | (1,363,535         | )          | (1,785,977 | ) |
| General partner                                                                                                                                                                                                          |       | (230,627           | )          | (234,894 | ) |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | (1,594,162         | )          | (2,020,871 | ) |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | $                  | 1,344,395  |   | $ | 1,803,790 |   |

 

F-9

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2008 and 2007

 
| ** **                                                                                                                                                                                                               | ** ** | **Series 12** | ** ** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                                                                                                                                               | ** ** | **2008**           | ** ** | **2007** | ** ** |
| ASSETS                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS                                                                                                                                                                            |       | $                  | —     |   | $ | 69,772 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| OTHER ASSETS                                                                                                                                                                                                             |       |               |       |   |   |
| Cash and cash equivalents                                                                                                                                                                                                |       | 105,077            |       | 502,693 |   |
| Deferred acquisition costs, net of accumulated amortization                                                                                                                                                              |       | 135,193            |       | 144,517 |   |
| Other                                                                                                                                                                                                                    |       | —             |       | 2,700 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | $                  | 240,270    |   | $ | 719,682 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| LIABILITIES  AND PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                        |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| LIABILITIES                                                                                                                                                                                                              |       |               |       |   |   |
| Accounts payable - trade                                                                                                                                                                                                 |       | $                  | 7,901      |   | $ | 3,750 |   |
| Accounts payable - affiliates                                                                                                                                                                                            |       | 4,292,427          |       | 4,606,163 |   |
| Capital contributions payable                                                                                                                                                                                            |       | 9,241              |       | 11,405 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | 4,309,569          |       | 4,621,318 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                                         |       |               |       |   |   |
| Assignor limited partner                                                                                                                                                                                                 |       |               |       |   |   |
| Units of limited partnership interest consisting of 20,000,000  authorized beneficial assignee certificates (BAC), $10 stated value,  2,972,795 issued and outstanding to the assignees at March 31, 2008 and  2007 |       | —             |       | — |   |
| Limited Partners                                                                                                                                                                                                         |       |               |       |   |   |
| Units of beneficial interest of the limited partnership interest of  the assignor limited partner, 2,972,795 issued and outstanding at  March 31, 2008 and 2007                                                     |       | (3,777,475         | )          | (3,611,488 | ) |
| General partner                                                                                                                                                                                                          |       | (291,824           | )          | (290,148 | ) |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | (4,069,299         | )          | (3,901,636 | ) |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | $                  | 240,270    |   | $ | 719,682 |   |

 

F-10

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2008 and 2007

 
| ** **                                                                                                                                                                                                               | ** ** | **Series 14** | ** ** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                                                                                                                                               | ** ** | **2008**           | ** ** | **2007** | ** ** |
| ASSETS                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS                                                                                                                                                                            |       | $                  | 710,904    |   | $ | 917,180 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| OTHER ASSETS                                                                                                                                                                                                             |       |               |       |   |   |
| Cash and cash equivalents                                                                                                                                                                                                |       | 370,868            |       | 649,859 |   |
| Deferred acquisition costs, net of accumulated amortization                                                                                                                                                              |       | 311,837            |       | 333,343 |   |
| Other                                                                                                                                                                                                                    |       | —             |       | — |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | $                  | 1,393,609  |   | $ | 1,900,382 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| LIABILITIES  AND PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                        |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| LIABILITIES                                                                                                                                                                                                              |       |               |       |   |   |
| Accounts payable - trade                                                                                                                                                                                                 |       | $                  | 1,214      |   | $ | — |   |
| Accounts payable - affiliates                                                                                                                                                                                            |       | 8,975,280          |       | 8,807,618 |   |
| Capital contributions payable                                                                                                                                                                                            |       | 192,412            |       | 202,412 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | 9,168,906          |       | 9,010,030 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                                         |       |               |       |   |   |
| Assignor limited partner                                                                                                                                                                                                 |       |               |       |   |   |
| Units of limited partnership interest consisting of 20,000,000  authorized beneficial assignee certificates (BAC), $10 stated value,  5,574,290 issued and outstanding to the assignees at March 31, 2008 and  2007 |       | —             |       | — |   |
| Limited Partners                                                                                                                                                                                                         |       |               |       |   |   |
| Units of beneficial interest of the limited partnership interest of  the assignor limited partner, 5,574,290 issued and outstanding at  March 31, 2008 and 2007                                                     |       | (7,227,668         | )          | (6,568,675 | ) |
| General partner                                                                                                                                                                                                          |       | (547,629           | )          | (540,973 | ) |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | (7,775,297         | )          | (7,109,648 | ) |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | $                  | 1,393,609  |   | $ | 1,900,382 |   |

 

See notes to financial statements

 

F-11

----

 

Boston Capital Tax CreditFund II Limited Partnership -

Series 7, 9 through 12,and 14

 

STATEMENTS OF OPERATIONS

 

Years ended March 31,2008 and 2007

 
| ** **                                                 | ** ** | **Total** | ** ** |
|------------------------------------------------------------|------------|-----------|------------|
| ** **                                                 | ** ** | **2008**  | ** ** | **2007** | ** ** |
| Income                                                     |       |      |       |   |   |
| Interest income                                            |       | $         | 65,935     |   | $ | 58,158 |   |
| Miscellaneous income                                       |       | 81,163    |       | 327,422 |   |
|                                                       |       |      |       |   |   |
|                                                       |       | 147,098   |       | 385,580 |   |
|                                                       |       |      |       |   |   |
| Share of income (loss) from operating limited partnerships |       | 1,475,831 |       | 1,989,375 |   |
|                                                       |       |      |       |   |   |
| Expenses                                                   |       |      |       |   |   |
| Professional fees                                          |       | 246,983   |       | 285,048 |   |
| Partnership management fee                                 |       | 1,125,917 |       | 1,285,868 |   |
| Amortization                                               |       | 34,792    |       | 34,792 |   |
| Impairment loss                                            |       | 143,050   |       | 332,494 |   |
| General and administrative expenses                        |       | 186,561   |       | 187,493 |   |
|                                                       |       |      |       |   |   |
|                                                       |       | 1,737,303 |       | 2,125,695 |   |
|                                                       |       |      |       |   |   |
| NET INCOME (LOSS)                                          |       | $         | (114,374   | ) | $ | 249,260 |   |
|                                                       |       |      |       |   |   |
| Net income (loss) allocated to general partner             |       | $         | (1,144     | ) | $ | 2,493 |   |
|                                                       |       |      |       |   |   |
| Net income (loss) allocated to assignees                   |       | $         | (113,230   | ) | $ | 246,767 |   |
|                                                       |       |      |       |   |   |
| Net income (loss) per BAC                                  |       | $         | (0.01      | ) | $ | 0.01 |   |

 

F-12

----

 

Boston Capital Tax CreditFund II Limited Partnership -

Series 7, 9 through 12,and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31,2008 and 2007

 
| ** **                                                 | ** ** | **Series 7** | ** ** |
|------------------------------------------------------------|------------|-------------------|------------|
| ** **                                                 | ** ** | **2008**          | ** ** | **2007** | ** ** |
| Income                                                     |       |              |       |   |   |
| Interest income                                            |       | $                 | 6,911      |   | $ | 6,140 |   |
| Miscellaneous income                                       |       | 1,412             |       | 600 |   |
|                                                       |       |              |       |   |   |
| Total income                                               |       | 8,323             |       | 6,740 |   |
|                                                       |       |              |       |   |   |
| Share of income (loss) from operating limited partnerships |       | 168,901           |       | 363,220 |   |
|                                                       |       |              |       |   |   |
| Expenses                                                   |       |              |       |   |   |
| Professional fees                                          |       | 18,375            |       | 18,897 |   |
| Partnership management fee                                 |       | 6,660             |       | 32,286 |   |
| Amortization                                               |       | —            |       | — |   |
| Impairment loss                                            |       | —            |       | — |   |
| General and administrative expenses                        |       | 15,469            |       | 13,882 |   |
|                                                       |       |              |       |   |   |
|                                                       |       | 40,504            |       | 65,065 |   |
|                                                       |       |              |       |   |   |
| NET INCOME (LOSS)                                          |       | $                 | 136,720    |   | $ | 304,895 |   |
|                                                       |       |              |       |   |   |
| Net income (loss) allocated to general partner             |       | $                 | 1,367      |   | $ | 3,049 |   |
|                                                       |       |              |       |   |   |
| Net income (loss) allocated to assignees                   |       | $                 | 135,353    |   | $ | 301,846 |   |
|                                                       |       |              |       |   |   |
| Net income (loss) per BAC                                  |       | $                 | 0.13       |   | $ | 0.28 |   |

 

F-13

----

 

Boston Capital Tax CreditFund II Limited Partnership -

Series 7, 9 through 12,and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31,2008 and 2007

 
| ** **                                                 | ** ** | **Series 9** | ** ** |
|------------------------------------------------------------|------------|-------------------|------------|
| ** **                                                 | ** ** | **2008**          | ** ** | **2007** | ** ** |
| Income                                                     |       |              |       |   |   |
| Interest income                                            |       | $                 | 6,708      |   | $ | 3,017 |   |
| Miscellaneous income                                       |       | 3,488             |       | 5,502 |   |
|                                                       |       |              |       |   |   |
| Total income                                               |       | 10,196            |       | 8,519 |   |
|                                                       |       |              |       |   |   |
| Share of income (loss) from operating limited partnerships |       | 160,198           |       | (10,078 | ) |
|                                                       |       |              |       |   |   |
| Expenses                                                   |       |              |       |   |   |
| Professional fees                                          |       | 38,119            |       | 44,859 |   |
| Partnership management fee                                 |       | 267,007           |       | 303,930 |   |
| Amortization                                               |       | 387               |       | 387 |   |
| Impairment loss                                            |       | —            |       | — |   |
| General and administrative expenses                        |       | 34,745            |       | 32,592 |   |
|                                                       |       |              |       |   |   |
|                                                       |       | 340,258           |       | 381,768 |   |
|                                                       |       |              |       |   |   |
| NET INCOME (LOSS)                                          |       | $                 | (169,864   | ) | $ | (383,327 | ) |
|                                                       |       |              |       |   |   |
| Net income (loss) allocated to general partner             |       | $                 | (1,699     | ) | $ | (3,833 | ) |
|                                                       |       |              |       |   |   |
| Net income (loss) allocated to assignees                   |       | $                 | (168,165   | ) | $ | (379,494 | ) |
|                                                       |       |              |       |   |   |
| Net income (loss) per BAC                                  |       | $                 | (0.04      | ) | $ | (0.09 | ) |

 

F-14

----

 

Boston Capital Tax CreditFund II Limited Partnership -

Series 7, 9 through 12,and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31,2008 and 2007

 
| ** **                                                 | ** ** | **Series 10** | ** ** |
|------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                 | ** ** | **2008**           | ** ** | **2007** | ** ** |
| Income                                                     |       |               |       |   |   |
| Interest income                                            |       | $                  | 13,096     |   | $ | 7,277 |   |
| Miscellaneous income                                       |       | 45,354             |       | 2,700 |   |
|                                                       |       |               |       |   |   |
| Total income                                               |       | 58,450             |       | 9,977 |   |
|                                                       |       |               |       |   |   |
| Share of income (loss) from operating limited partnerships |       | 371,766            |       | 449,258 |   |
|                                                       |       |               |       |   |   |
| Expenses                                                   |       |               |       |   |   |
| Professional fees                                          |       | 36,201             |       | 43,194 |   |
| Partnership management fee                                 |       | 67,767             |       | 195,739 |   |
| Amortization                                               |       | 2,060              |       | 2,060 |   |
| Impairment loss                                            |       | —             |       | 17,736 |   |
| General and administrative expenses                        |       | 25,474             |       | 26,195 |   |
|                                                       |       |               |       |   |   |
|                                                       |       | 131,502            |       | 284,924 |   |
|                                                       |       |               |       |   |   |
| NET INCOME (LOSS)                                          |       | $                  | 298,714    |   | $ | 174,311 |   |
|                                                       |       |               |       |   |   |
| Net income (loss) allocated to general partner             |       | $                  | 2,987      |   | $ | 1,743 |   |
|                                                       |       |               |       |   |   |
| Net income (loss) allocated to assignees                   |       | $                  | 295,727    |   | $ | 172,568 |   |
|                                                       |       |               |       |   |   |
| Net income (loss) per BAC                                  |       | $                  | 0.12       |   | $ | 0.07 |   |

 

F-15

----

 

Boston Capital Tax CreditFund II Limited Partnership -

Series 7, 9 through 12,and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31,2008 and 2007

 
| ** **                                                 | ** ** | **Series 11** | ** ** |
|------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                 | ** ** | **2008**           | ** ** | **2007** | ** ** |
| Income                                                     |       |               |       |   |   |
| Interest income                                            |       | $                  | 10,274     |   | $ | 7,908 |   |
| Miscellaneous income                                       |       | 3,609              |       | 292,712 |   |
|                                                       |       |               |       |   |   |
| Total income                                               |       | 13,883             |       | 300,620 |   |
|                                                       |       |               |       |   |   |
| Share of income (loss) from operating limited partnerships |       | 814,501            |       | 146,141 |   |
|                                                       |       |               |       |   |   |
| Expenses                                                   |       |               |       |   |   |
| Professional fees                                          |       | 36,131             |       | 40,651 |   |
| Partnership management fee                                 |       | 195,191            |       | 171,403 |   |
| Amortization                                               |       | 1,515              |       | 1,515 |   |
| Impairment loss                                            |       | 143,050            |       | 301,946 |   |
| General and administrative expenses                        |       | 25,788             |       | 24,782 |   |
|                                                       |       |               |       |   |   |
|                                                       |       | 401,675            |       | 540,297 |   |
|                                                       |       |               |       |   |   |
| NET INCOME (LOSS)                                          |       | $                  | 426,709    |   | $ | (93,536 | ) |
|                                                       |       |               |       |   |   |
| Net income (loss) allocated to general partner             |       | $                  | 4,267      |   | $ | (935 | ) |
|                                                       |       |               |       |   |   |
| Net income (loss) allocated to assignees                   |       | $                  | 422,442    |   | $ | (92,601 | ) |
|                                                       |       |               |       |   |   |
| Net income (loss) per BAC                                  |       | $                  | 0.17       |   | $ | (0.04 | ) |

 

F-16

----

 

Boston Capital Tax CreditFund II Limited Partnership -

Series 7, 9 through 12,and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31,2008 and 2007

 
| ** **                                                 | ** ** | **Series 12** | ** ** |
|------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                 | ** ** | **2008**           | ** ** | **2007** | ** ** |
| Income                                                     |       |               |       |   |   |
| Interest income                                            |       | $                  | 13,574     |   | $ | 17,920 |   |
| Miscellaneous income                                       |       | 8,579              |       | 6,714 |   |
|                                                       |       |               |       |   |   |
| Total income                                               |       | 22,153             |       | 24,634 |   |
|                                                       |       |               |       |   |   |
| Share of income (loss) from operating limited partnerships |       | 54,728             |       | 844,126 |   |
|                                                       |       |               |       |   |   |
| Expenses                                                   |       |               |       |   |   |
| Professional fees                                          |       | 41,542             |       | 52,767 |   |
| Partnership management fee                                 |       | 152,534            |       | 77,109 |   |
| Amortization                                               |       | 9,324              |       | 9,324 |   |
| Impairment loss                                            |       | —             |       | 12,812 |   |
| General and administrative expenses                        |       | 29,416             |       | 31,105 |   |
|                                                       |       |               |       |   |   |
|                                                       |       | 232,816            |       | 183,117 |   |
|                                                       |       |               |       |   |   |
| NET INCOME (LOSS)                                          |       | $                  | (155,935   | ) | $ | 685,643 |   |
|                                                       |       |               |       |   |   |
| Net income (loss) allocated to general partner             |       | $                  | (1,559     | ) | $ | 6,856 |   |
|                                                       |       |               |       |   |   |
| Net income (loss) allocated to assignees                   |       | $                  | (154,376   | ) | $ | 678,787 |   |
|                                                       |       |               |       |   |   |
| Net income (loss) per BAC                                  |       | $                  | (0.05      | ) | $ | 0.23 |   |

 

F-17

----

 

Boston Capital Tax CreditFund II Limited Partnership -

Series 7, 9 through 12,and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31,2008 and 2007

 
| ** **                                                 | ** ** | **Series 14** | ** ** |
|------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                 | ** ** | **2008**           | ** ** | **2007** | ** ** |
| Income                                                     |       |               |       |   |   |
| Interest income                                            |       | $                  | 15,372     |   | $ | 15,896 |   |
| Miscellaneous income                                       |       | 18,721             |       | 19,194 |   |
|                                                       |       |               |       |   |   |
| Total income                                               |       | 34,093             |       | 35,090 |   |
|                                                       |       |               |       |   |   |
| Share of income (loss) from operating limited partnerships |       | (94,263            | )          | 196,708 |   |
|                                                       |       |               |       |   |   |
| Expenses                                                   |       |               |       |   |   |
| Professional fees                                          |       | 76,615             |       | 84,680 |   |
| Partnership management fee                                 |       | 436,758            |       | 505,401 |   |
| Amortization                                               |       | 21,506             |       | 21,506 |   |
| Impairment loss                                            |       | —             |       | — |   |
| General and administrative expenses                        |       | 55,669             |       | 58,937 |   |
|                                                       |       |               |       |   |   |
|                                                       |       | 590,548            |       | 670,524 |   |
|                                                       |       |               |       |   |   |
| NET INCOME (LOSS)                                          |       | $                  | (650,718   | ) | $ | (438,726 | ) |
|                                                       |       |               |       |   |   |
| Net income (loss) allocated to general partner             |       | $                  | (6,507     | ) | $ | (4,387 | ) |
|                                                       |       |               |       |   |   |
| Net income (loss) allocated to assignees                   |       | $                  | (644,211   | ) | $ | (434,339 | ) |
|                                                       |       |               |       |   |   |
| Net income (loss) per BAC                                  |       | $                  | (0.12      | ) | $ | (0.08 | ) |

 

See notes to financial statements

 

F-18

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)

 

Years ended March 31, 2008 and 2007

 
| **Total**                                             | ** ** | **Assignees** | ** **  | **General  partner** | ** ** | **Total**   | ** ** |
|-------------------------------------------------------|------------|---------------|-------------|----------------------|------------|-------------|------------|
|                                                  |       |          |        |                 |       |        |       |
| Partners’ capital (deficit), March 31, 2006 |       | (19,175,853   | )           | (1,778,009           | )          | (20,953,862 | )          |
|                                                  |       |          |        |                 |       |        |       |
| Net income (loss)                                     |       | 246,767       |        | 2,493                |       | 249,260     |       |
|                                                  |       |          |        |                 |       |        |       |
| Distributions                                         |       | (1,543,025    | )           | —               |       | (1,543,025  | )          |
|                                                  |       |          |        |                 |       |        |       |
| Partners’ capital (deficit), March 31, 2007 |       | (20,472,111   | )           | (1,775,516           | )          | (22,247,627 | )          |
|                                                  |       |          |        |                 |       |        |       |
| Net income (loss)                                     |       | (113,230      | )           | (1,144               | )          | (114,374    | )          |
|                                                  |       |          |        |                 |       |        |       |
| Distributions                                         |       | (57,407       | )           | (579                 | )          | (57,986     | )          |
|                                                  |       |          |        |                 |       |        |       |
| Partners’ capital (deficit), March 31, 2008 |       | $             | (20,642,748 | )                    | $          | (1,777,239  | )          | $ | (22,419,987 | ) |
|                                                       |            |               |             |                      |            |             |            |  |  |  |

 

F-19

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED

 

Years ended March 31, 2008 and 2007

 
| **Series 7**                                     | ** ** | **Assignees** | ** ** | **General  partner** | ** ** | **Total** | ** ** |
|-------------------------------------------------------|------------|---------------|------------|----------------------|------------|-----------|------------|
|                                                  |       |          |       |                 |       |      |       |
| Partners’ capital (deficit), March 31, 2006 |       | (297,437      | )          | (93,840              | )          | (391,277  | )          |
|                                                  |       |          |       |                 |       |      |       |
| Net income (loss)                                     |       | 301,846       |       | 3,049                |       | 304,895   |       |
|                                                  |       |          |       |                 |       |      |       |
| Distributions                                         |       | (233,185      | )          | —               |       | (233,185  | )          |
|                                                  |       |          |       |                 |       |      |       |
| Partners’ capital (deficit), March 31, 2007 |       | (228,776      | )          | (90,791              | )          | (319,567  | )          |
|                                                  |       |          |       |                 |       |      |       |
| Net income (loss)                                     |       | 135,353       |       | 1,367                |       | 136,720   |       |
|                                                  |       |          |       |                 |       |      |       |
| Distributions                                         |       | —        |       | —               |       | —    |       |
|                                                  |       |          |       |                 |       |      |       |
| Partners’ capital (deficit), March 31, 2008 |       | $             | (93,423    | )                    | $          | (89,424   | )          | $ | (182,847 | ) |
|                                                       |            |               |            |                      |            |           |            |  |  |  |

 
| **Series 9**                                     | ** ** | **Assignees** | ** ** | **General  partner** | ** ** | **Total**  | ** ** |
|-------------------------------------------------------|------------|---------------|------------|----------------------|------------|------------|------------|
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2006 |       | (5,223,129    | )          | (390,979             | )          | (5,614,108 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | (379,494      | )          | (3,833               | )          | (383,327   | )          |
|                                                  |       |          |       |                 |       |       |       |
| Distributions                                         |       | —        |       | —               |       | —     |       |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2007 |       | (5,602,623    | )          | (394,812             | )          | (5,997,435 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | (168,165      | )          | (1,699               | )          | (169,864   | )          |
|                                                  |       |          |       |                 |       |       |       |
| Distributions                                         |       | —        |       | —               |       | —     |       |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2008 |       | $             | (5,770,788 | )                    | $          | (396,511   | )          | $ | (6,167,299 | ) |
|                                                       |            |               |            |                      |            |            |            |  |  |  |

 

F-20

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED

 

Years ended March 31, 2008 and 2007

 
| **Series 10**                                    | ** ** | **Assignees** | ** ** | **General  partner** | ** ** | **Total**  | ** ** |
|-------------------------------------------------------|------------|---------------|------------|----------------------|------------|------------|------------|
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2006 |       | (2,847,140    | )          | (225,641             | )          | (3,072,781 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | 172,568       |       | 1,743                |       | 174,311    |       |
|                                                  |       |          |       |                 |       |       |       |
| Distributions                                         |       | —        |       | —               |       | —     |       |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2007 |       | (2,674,572    | )          | (223,898             | )          | (2,898,470 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | 295,727       |       | 2,987                |       | 298,714    |       |
|                                                  |       |          |       |                 |       |       |       |
| Distributions                                         |       | (31,014       | )          | (313                 | )          | (31,327    | )          |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2008 |       | $             | (2,409,859 | )                    | $          | (221,224   | )          | $ | (2,631,083 | ) |
|                                                  |       |          |       |                 |       |       |       |
| **Series 11**                                    | ** ** | **Assignees** | ** ** | **General  partner** | ** ** | **Total**  | ** ** |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2006 |       | (1,693,376    | )          | (233,959             | )          | (1,927,335 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | (92,601       | )          | (935                 | )          | (93,536    | )          |
|                                                  |       |          |       |                 |       |       |       |
| Distributions                                         |       | —        |       | —               |       | —     |       |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2007 |       | (1,785,977    | )          | (234,894             | )          | (2,020,871 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | 422,442       |       | 4,267                |       | 426,709    |       |
|                                                  |       |          |       |                 |       |       |       |
| Distributions                                         |       | —        |       | —               |       | —     |       |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2008 |       | $             | (1,363,535 | )                    | $          | (230,627   | )          | $ | (1,594,162 | ) |

 

F-21

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED

 

Years ended March 31, 2008 and 2007

 
| **Series 12**                                    | ** ** | **Assignees** | ** ** | **General  partner** | ** ** | **Total**  | ** ** |
|-------------------------------------------------------|------------|---------------|------------|----------------------|------------|------------|------------|
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2006 |       | (3,677,520    | )          | (297,004             | )          | (3,974,524 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | 678,787       |       | 6,856                |       | 685,643    |       |
|                                                  |       |          |       |                 |       |       |       |
| Distributions                                         |       | (612,755      | )          | —               |       | (612,755   | )          |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2007 |       | (3,611,488    | )          | (290,148             | )          | (3,901,636 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | (154,376      | )          | (1,559               | )          | (155,935   | )          |
|                                                  |       |          |       |                 |       |       |       |
| Distributions                                         |       | (11,611       | )          | (117                 | )          | (11,728    | )          |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2008 |       | $             | (3,777,475 | )                    | $          | (291,824   | )          | $ | (4,069,299 | ) |
|                                                  |       |          |       |                 |       |       |       |
| **Series 14**                                    | ** ** | **Assignees** | ** ** | **General  partner** | ** ** | **Total**  | ** ** |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2006 |       | (5,437,251    | )          | (536,586             | )          | (5,973,837 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | (434,339      | )          | (4,387               | )          | (438,726   | )          |
|                                                  |       |          |       |                 |       |       |       |
| Distributions                                         |       | (697,085      | )          | —               |       | (697,085   | )          |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2007 |       | (6,568,675    | )          | (540,973             | )          | (7,109,648 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | (644,211      | )          | (6,507               | )          | (650,718   | )          |
|                                                  |       |          |       |                 |       |       |       |
| Distributions                                         |       | (14,782       | )          | (149                 | )          | (14,931    | )          |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2008 |       | $             | (7,227,668 | )                    | $          | (547,629   | )          | $ | (7,775,297 | ) |

 

See notes to financial statements

 

F-22

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS

 

Years ended March 31, 2008 and 2007

 
| ** **                                                                                         | ** ** | **Total**  | ** ** |
|----------------------------------------------------------------------------------------------------|------------|------------|------------|
| ** **                                                                                         | ** ** | **2008**   | ** ** | **2007** | ** ** |
| Cash flows from operating activities                                                               |       |       |       |   |   |
| Net income (loss)                                                                                  |       | $          | (114,374   | ) | $ | 249,260 |   |
| Adjustments to reconcile net income (loss) to net cash provided by  (used in) operating activities |       |       |       |   |   |
| Distributions from operating limited partnerships                                                  |       | 72,018     |       | 42,081 |   |
| Share of (income) loss from operating limited partnerships                                         |       | (1,475,831 | )          | (1,989,375 | ) |
| Impairment loss                                                                                    |       | 143,050    |       | 332,494 |   |
| Amortization                                                                                       |       | 34,792     |       | 34,792 |   |
| Changes in assets and liabilities                                                                  |       |       |       |   |   |
| Accounts payable and accrued expenses                                                              |       | 1,919      |       | (59,868 | ) |
| Accounts payable - affiliates                                                                      |       | (1,860,010 | )          | (1,564,334 | ) |
| Other assets                                                                                       |       | 329,620    |       | 754,106 |   |
|                                                                                               |       |       |       |   |   |
| Net cash provided by (used in) operating activities                                                |       | (2,868,816 | )          | (2,200,844 | ) |
|                                                                                               |       |       |       |   |   |
| Cash flows from investing activities                                                               |       |       |       |   |   |
| Capital contributions paid to operating limited partnerships                                       |       | (34,692    | )          | — |   |
| Proceeds from disposition of operating limited partnerships                                        |       | 2,040,907  |       | 2,248,992 |   |
|                                                                                               |       |       |       |   |   |
| Net cash provided by (used in) investing activities                                                |       | 2,006,215  |       | 2,248,992 |   |
|                                                                                               |       |       |       |   |   |
| Cash flows from financing activities                                                               |       |       |       |   |   |
| Distributions paid to assignees                                                                    |       | (57,986    | )          | (1,543,025 | ) |
|                                                                                               |       |       |       |   |   |
| Net cash provided by (used in) financing activities                                                |       | (57,986    | )          | (1,543,025 | ) |
|                                                                                               |       |       |       |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                               |       | (920,587   | )          | (1,494,877 | ) |
|                                                                                               |       |       |       |   |   |
| Cash and cash equivalents, beginning                                                               |       | 2,005,864  |       | 3,500,741 |   |
|                                                                                               |       |       |       |   |   |
| Cash and cash equivalents, end                                                                     |       | $          | 1,085,277  |   | $ | 2,005,864 |   |

 

F-23

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2008 and 2007

 
| ** **                                                                                         | ** ** | **Series 7** | ** ** |
|----------------------------------------------------------------------------------------------------|------------|-------------------|------------|
| ** **                                                                                         | ** ** | **2008**          | ** ** | **2007** | ** ** |
| Cash flows from operating activities                                                               |       |              |       |   |   |
| Net income (loss)                                                                                  |       | $                 | 136,720    |   | $ | 304,895 |   |
| Adjustments to reconcile net income (loss) to net cash provided by  (used in) operating activities |       |              |       |   |   |
| Distributions from operating limited partnerships                                                  |       | —            |       | — |   |
| Share of (income) loss from operating limited partnerships                                         |       | (168,901          | )          | (363,220 | ) |
| Impairment loss                                                                                    |       | —            |       | — |   |
| Amortization                                                                                       |       | —            |       | — |   |
| Changes in assets and liabilities                                                                  |       |              |       |   |   |
| Accounts payable and accrued expenses                                                              |       | 381               |       | (9,000 | ) |
| Accounts payable - affiliates                                                                      |       | (493,485          | )          | (719,648 | ) |
| Other assets                                                                                       |       | 326,920           |       | 808,572 |   |
|                                                                                               |       |              |       |   |   |
| Net cash provided by (used in) operating activities                                                |       | (198,365          | )          | 21,599 |   |
|                                                                                               |       |              |       |   |   |
| Cash flows from investing activities                                                               |       |              |       |   |   |
| (Advances to) repayments from operating limited partnerships                                       |       | —            |       | — |   |
| Proceeds from disposition of operating limited partnerships                                        |       | 168,901           |       | 36,300 |   |
|                                                                                               |       |              |       |   |   |
| Net cash provided by (used in) investing activities                                                |       | 168,901           |       | 36,300 |   |
|                                                                                               |       |              |       |   |   |
| Cash flows from financing activities                                                               |       |              |       |   |   |
| Distributions paid to assignees                                                                    |       | —            |       | (233,185 | ) |
|                                                                                               |       |              |       |   |   |
| Net cash provided by (used in) financing activities                                                |       | —            |       | (233,185 | ) |
|                                                                                               |       |              |       |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                               |       | (29,464           | )          | (175,286 | ) |
|                                                                                               |       |              |       |   |   |
| Cash and cash equivalents, beginning                                                               |       | 187,030           |       | 362,316 |   |
|                                                                                               |       |              |       |   |   |
| Cash and cash equivalents, end                                                                     |       | $                 | 157,566    |   | $ | 187,030 |   |

 

F-24

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2008 and 2007

 
| ** **                                                                                         | ** ** | **Series 9** | ** ** |
|----------------------------------------------------------------------------------------------------|------------|-------------------|------------|
| ** **                                                                                         | ** ** | **2008**          | ** ** | **2007** | ** ** |
| Cash flows from operating activities                                                               |       |              |       |   |   |
| Net income (loss)                                                                                  |       | $                 | (169,864   | ) | $ | (383,327 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by  (used in) operating activities |       |              |       |   |   |
| Distributions from operating limited partnerships                                                  |       | —            |       | — |   |
| Share of (income) loss from operating limited partnerships                                         |       | (160,198          | )          | 10,078 |   |
| Impairment loss                                                                                    |       | —            |       | — |   |
| Amortization                                                                                       |       | 387               |       | 387 |   |
| Changes in assets and liabilities                                                                  |       |              |       |   |   |
| Accounts payable and accrued expenses                                                              |       | 381               |       | (2,000 | ) |
| Accounts payable - affiliates                                                                      |       | 176,961           |       | 320,592 |   |
| Other assets                                                                                       |       | —            |       | (22,300 | ) |
|                                                                                               |       |              |       |   |   |
| Net cash provided by (used in) operating activities                                                |       | (152,333          | )          | (76,570 | ) |
|                                                                                               |       |              |       |   |   |
| Cash flows from investing activities                                                               |       |              |       |   |   |
| (Advances to) repayments from operating limited partnerships                                       |       | —            |       | — |   |
| Proceeds from disposition of operating limited partnerships                                        |       | 160,198           |       | 12,222 |   |
|                                                                                               |       |              |       |   |   |
| Net cash provided by (used in) investing activities                                                |       | 160,198           |       | 12,222 |   |
|                                                                                               |       |              |       |   |   |
| Cash flows from financing activities                                                               |       |              |       |   |   |
| Distributions paid to assignees                                                                    |       | —            |       | — |   |
|                                                                                               |       |              |       |   |   |
| Net cash provided by (used in) financing activities                                                |       | —            |       | — |   |
|                                                                                               |       |              |       |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                               |       | 7,865             |       | (64,348 | ) |
|                                                                                               |       |              |       |   |   |
| Cash and cash equivalents, beginning                                                               |       | 141,756           |       | 206,104 |   |
|                                                                                               |       |              |       |   |   |
| Cash and cash equivalents, end                                                                     |       | $                 | 149,621    |   | $ | 141,756 |   |

 

F-25

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2008 and 2007

 
| ** **                                                                                         | ** ** | **Series 10** | ** ** |
|----------------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                         | ** ** | **2008**           | ** ** | **2007** | ** ** |
| Cash flows from operating activities                                                               |       |               |       |   |   |
| Net income (loss)                                                                                  |       | $                  | 298,714    |   | $ | 174,311 |   |
| Adjustments to reconcile net income (loss) to net cash provided by  (used in) operating activities |       |               |       |   |   |
| Distributions from operating limited partnerships                                                  |       | 13,020             |       | 20,582 |   |
| Share of (income) loss from operating limited partnerships                                         |       | (371,766           | )          | (449,258 | ) |
| Impairment loss                                                                                    |       | —             |       | 17,736 |   |
| Amortization                                                                                       |       | 2,060              |       | 2,060 |   |
| Changes in assets and liabilities                                                                  |       |               |       |   |   |
| Accounts payable and accrued expenses                                                              |       | 381                |       | (12,000 | ) |
| Accounts payable - affiliates                                                                      |       | (538,425           | )          | (338,149 | ) |
| Other assets                                                                                       |       | —             |       | — |   |
|                                                                                               |       |               |       |   |   |
| Net cash provided by (used in) operating activities                                                |       | (596,016           | )          | (584,718 | ) |
|                                                                                               |       |               |       |   |   |
| Cash flows from investing activities                                                               |       |               |       |   |   |
| (Advances to) repayments from operating limited partnerships                                       |       | —             |       | — |   |
| Proceeds from disposition of operating limited partnerships                                        |       | 467,041            |       | 546,095 |   |
|                                                                                               |       |               |       |   |   |
| Net cash provided by (used in) investing activities                                                |       | 467,041            |       | 546,095 |   |
|                                                                                               |       |               |       |   |   |
| Cash flows from financing activities                                                               |       |               |       |   |   |
| Distributions paid to assignees                                                                    |       | (31,327            | )          | — |   |
|                                                                                               |       |               |       |   |   |
| Net cash provided by (used in) financing activities                                                |       | (31,327            | )          | — |   |
|                                                                                               |       |               |       |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                               |       | (160,302           | )          | (38,623 | ) |
|                                                                                               |       |               |       |   |   |
| Cash and cash equivalents, beginning                                                               |       | 312,676            |       | 351,299 |   |
|                                                                                               |       |               |       |   |   |
| Cash and cash equivalents, end                                                                     |       | $                  | 152,374    |   | $ | 312,676 |   |

 

F-26

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2008 and 2007

 
| ** **                                                                                | ** ** | **Series 11** | ** ** |
|-------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                | ** ** | **2008**           | ** ** | **2007** | ** ** |
| Cash flows from operating activities                                                      |       |               |       |   |   |
| Net loss                                                                                  |       | $                  | 426,709    |   | $ | (93,536 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in)  operating activities |       |               |       |   |   |
| Distributions from operating limited partnerships                                         |       | 14,680             |       | — |   |
| Share of (income) loss from operating limited partnerships                                |       | (814,501           | )          | (146,141 | ) |
| Impairment loss                                                                           |       | 143,050            |       | 301,946 |   |
| Amortization                                                                              |       | 1,515              |       | 1,515 |   |
| Changes in assets and liabilities                                                         |       |               |       |   |   |
| Accounts payable and accrued expenses                                                     |       | (4,589             | )          | (9,710 | ) |
| Accounts payable - affiliates                                                             |       | (858,987           | )          | (435,167 | ) |
| Other assets                                                                              |       | —             |       | (32,166 | ) |
|                                                                                      |       |               |       |   |   |
| Net cash provided by (used in) operating activities                                       |       | (1,092,123         | )          | (413,259 | ) |
|                                                                                      |       |               |       |   |   |
| Cash flows from investing activities                                                      |       |               |       |   |   |
| Capital contributions paid to operating limited partnerships                              |       | (22,528            | )          | — |   |
| Proceeds from disposition of operating limited partnerships                               |       | 1,052,572          |       | 364,130 |   |
|                                                                                      |       |               |       |   |   |
| Net cash provided by (used in) investing activities                                       |       | 1,030,044          |       | 364,130 |   |
|                                                                                      |       |               |       |   |   |
| Cash flows from financing activities                                                      |       |               |       |   |   |
| Distributions paid to assignees                                                           |       | —             |       | — |   |
|                                                                                      |       |               |       |   |   |
| Net cash provided by (used in) financing activities                                       |       | —             |       | — |   |
|                                                                                      |       |               |       |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                      |       | (62,079            | )          | (49,129 | ) |
|                                                                                      |       |               |       |   |   |
| Cash and cash equivalents, beginning                                                      |       | 211,850            |       | 260,979 |   |
|                                                                                      |       |               |       |   |   |
| Cash and cash equivalents, end                                                            |       | $                  | 149,771    |   | $ | 211,850 |   |

 

F-27

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2008 and 2007

 
| ** **                                                                                         | ** ** | **Series 12** | ** ** |
|----------------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                         | ** ** | **2008**           | ** ** | **2007** | ** ** |
| Cash flows from operating activities                                                               |       |               |       |   |   |
| Net income (loss)                                                                                  |       | $                  | (155,935   | ) | $ | 685,643 |   |
| Adjustments to reconcile net income (loss) to net cash provided by  (used in) operating activities |       |               |       |   |   |
| Distributions from operating limited partnerships                                                  |       | —             |       | 7,710 |   |
| Share of (income) loss from operating limited partnerships                                         |       | (54,728            | )          | (844,126 | ) |
| Impairment loss                                                                                    |       | —             |       | 12,812 |   |
| Amortization                                                                                       |       | 9,324              |       | 9,324 |   |
| Changes in assets and liabilities                                                                  |       |               |       |   |   |
| Accounts payable and accrued expenses                                                              |       | 4,151              |       | (19,778 | ) |
| Accounts payable - affiliates                                                                      |       | (313,736           | )          | (624,950 | ) |
| Other assets                                                                                       |       | 2,700              |       | — |   |
|                                                                                               |       |               |       |   |   |
| Net cash provided by (used in) operating activities                                                |       | (508,224           | )          | (773,365 | ) |
|                                                                                               |       |               |       |   |   |
| Cash flows from investing activities                                                               |       |               |       |   |   |
| Capital contributions paid to operating limited partnerships                                       |       | (2,164             | )          | — |   |
| Proceeds from disposition of operating limited partnerships                                        |       | 124,500            |       | 892,008 |   |
|                                                                                               |       |               |       |   |   |
| Net cash provided by (used in) investing activities                                                |       | 122,336            |       | 892,008 |   |
|                                                                                               |       |               |       |   |   |
| Cash flows from financing activities                                                               |       |               |       |   |   |
| Distributions paid to assignees                                                                    |       | (11,728            | )          | (612,755 | ) |
|                                                                                               |       |               |       |   |   |
| Net cash provided by (used in) financing activities                                                |       | (11,728            | )          | (612,755 | ) |
|                                                                                               |       |               |       |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                               |       | (397,616           | )          | (494,112 | ) |
|                                                                                               |       |               |       |   |   |
| Cash and cash equivalents, beginning                                                               |       | 502,693            |       | 996,805 |   |
|                                                                                               |       |               |       |   |   |
| Cash and cash equivalents, end                                                                     |       | $                  | 105,077    |   | $ | 502,693 |   |

 

F-28

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2008 and 2007

 
| ** **                                                                                | ** ** | **Series 14** | ** ** |
|-------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                | ** ** | **2008**           | ** ** | **2007** | ** ** |
| Cash flows from operating activities                                                      |       |               |       |   |   |
| Net loss                                                                                  |       | $                  | (650,718   | ) | $ | (438,726 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in)  operating activities |       |               |       |   |   |
| Distributions from operating limited partnerships                                         |       | 44,318             |       | 13,789 |   |
| Share of (income) loss from operating limited partnerships                                |       | 94,263             |       | (196,708 | ) |
| Impairment loss                                                                           |       | —             |       | — |   |
| Amortization                                                                              |       | 21,506             |       | 21,506 |   |
| Changes in assets and liabilities                                                         |       |               |       |   |   |
| Accounts payable and accrued expenses                                                     |       | 1,214              |       | (7,380 | ) |
| Accounts payable - affiliates                                                             |       | 167,662            |       | 232,988 |   |
| Other assets                                                                              |       | —             |       | — |   |
|                                                                                      |       |               |       |   |   |
| Net cash provided by (used in) operating activities                                       |       | (321,755           | )          | (374,531 | ) |
|                                                                                      |       |               |       |   |   |
| Cash flows from investing activities                                                      |       |               |       |   |   |
| Capital contributions paid to operating limited partnerships                              |       | (10,000            | )          | — |   |
| Proceeds from disposition of operating limited partnerships                               |       | 67,695             |       | 398,237 |   |
|                                                                                      |       |               |       |   |   |
| Net cash provided by (used in) investing activities                                       |       | 57,695             |       | 398,237 |   |
|                                                                                      |       |               |       |   |   |
| Cash flows from financing activities                                                      |       |               |       |   |   |
| Distributions paid to assignees                                                           |       | (14,931            | )          | (697,085 | ) |
|                                                                                      |       |               |       |   |   |
| Net cash provided by (used in) financing activities                                       |       | (14,931            | )          | (697,085 | ) |
|                                                                                      |       |               |       |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                      |       | (278,991           | )          | (673,379 | ) |
|                                                                                      |       |               |       |   |   |
| Cash and cash equivalents, beginning                                                      |       | 649,859            |       | 1,323,238 |   |
|                                                                                      |       |               |       |   |   |
| Cash and cash equivalents, end                                                            |       | $                  | 370,868    |   | $ | 649,859 |   |

 

F-29

----

 

Boston Capital TaxCredit Fund II Limited Partnership -

Series 7, 9through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS

 

March 31,2008 and 2007

 

NOTE A - ORGANIZATION ANDSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Boston CapitalTax Credit Fund II Limited Partnership (the “partnership” or “fund”) was formedunder the laws of the State of Delaware on June 28, 1989, for the purposeof acquiring, holding and disposing of limited partnership interests inoperating limited partnerships which were to acquire, develop, rehabilitate,operate and own newly constructed, existing or rehabilitated low-incomeapartment complexes which qualify for the Low-Income Housing Tax Creditestablished by the Tax Reform Act of 1986. Accordingly, the apartment complexes are restricted as to rent chargesand operating methods.  Certain of theapartment complexes also qualified for the Historic Rehabilitation Tax Creditfor their rehabilitation of a certified historic structure and are subject tothe provisions of the Internal Revenue Code relating to the RehabilitationInvestment Credit.  The general partnerof the partnership is Boston Capital Associates II Limited Partnership and thelimited partner is BCTC Assignor Corp. II (the “assignor limited partner”).

 

Pursuant tothe Securities Act of 1933, the partnership filed a Form S-11 RegistrationStatement with the Securities and Exchange Commission, effective August 29,1988, which covered the offering (the “Public Offering”) of the partnership’sbeneficial assignee certificates (“BACs”) representing assignments of units ofthe beneficial interest of the limited partnership interest of the assignorlimited partner.  The partnershipregistered 20,000,000 BACs at $10 per BAC for sale to the public in sixseries.  BACs sold in bulk over $100,000were offered to investors at a reduced cost per BAC.  The partnership is no longer selling any BACsrelated to any series.  The final closingin Series 14 was January 27, 1993.

 

The BACsissued and outstanding in each series at March 31, 2008 and 2007 are asfollows:

 
| Series 7  |   | 1,036,100  |   |
|----------------|--------|------------|--------|
| Series 9  |   | 4,178,029  |   |
| Series 10 |   | 2,428,925  |   |
| Series 11 |   | 2,489,599  |   |
| Series 12 |   | 2,972,795  |   |
| Series 14 |   | 5,574,290  |   |
|           |   |       |   |
| Total          |   | 18,679,738 |   |

 

F-30

----

 

Boston Capital TaxCredit Fund II Limited Partnership -

Series 7, 9through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31,2008 and 2007

 

NOTE A - ORGANIZATION AND SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES (Continued)

 

In accordance with the limited partnershipagreement, profits, losses, and cash flow (subject to certain priorityallocations and distributions) and tax credits are allocated 99% to theassignees and 1% to the general partner.

 

Deferred Acquisition Costs

 

Deferredacquisition costs are being amortized on the straight-line method starting April 1,1995 over 27.5 years (330 months).

 

As of April 1,1995, the partnership reclassified certain unallocated acquisition costsincluded in the investments in operating limited partnerships to deferredacquisition costs.  The amounts include$23,920, $94,634 and $47,968 for Series 9, Series 10 and Series 11,respectively.

 

Accumulated amortization as of March 31,2008 and 2007 is as follows:

 
| ** **     | ** ** | **2008** | ** ** | **2007** | ** ** |
|----------------|------------|----------|------------|----------|------------|
|           |       |     |       |     |       |
| Series 7  |       | $        | —     |     | $          | — |   |
| Series 9  |       | 18,318   |       | 17,931   |       |
| Series 10 |       | 64,765   |       | 62,705   |       |
| Series 11 |       | 26,004   |       | 24,489   |       |
| Series 12 |       | 231,019  |       | 221,695  |       |
| Series 14 |       | 490,868  |       | 469,362  |       |
|           |       |     |       |     |       |
|           |       | $        | 830,974    |     | $          | 796,182 |   |

 

The amortization of deferred acquisitioncosts for each of the ensuing 5 years through March 31, 2013 is estimatedto be $34,792 per year.

 

Income Taxes

 

No provision or benefit for income taxes hasbeen included in these financial statements since taxable income or loss passesthrough to, and is reportable by, the general partner and assigneesindividually.

 

F-31

----

 

Boston Capital TaxCredit Fund II Limited Partnership -

Series 7, 9through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31,2008 and 2007

 

NOTE A - ORGANIZATION AND SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Investments in Operating Limited Partnerships

 

Thepartnership accounts for its investments in operating limited partnershipsusing the equity method of accounting. Under the equity method of accounting, the partnership adjusts itsinvestment cost for its share of each operating limited partnership’s resultsof operations and for any distributions received or accrued.  However, the partnership recognizesindividual operating limited partnership losses only to the extent that thefund’s share of losses from the operating limited partnerships exceeds thecarrying amount of the investment and advances to operating limitedpartnerships.  Unrecognized losses aresuspended and offset against future individual operating limited partnershipincome.  No operating limitedpartnerships were acquired during 2008 or 2007.

 

Under EmergingIssues Task Force (EITF) 98-13, after the investment account is reduced tozero, receivables due from the operating limited partnerships are decreased bythe funds’ share of losses and, accordingly a valuation allowance is recordedagainst the receivables.  Accordingly,the partnership recorded a valuation allowance as follows:

 
| ** **     | ** ** | **2008** | ** ** | **2007** | ** ** |
|----------------|------------|----------|------------|----------|------------|
|           |       |     |       |     |       |
| Series 7  |       | $        | —     |     | $          | 130,176 |   |
| Series 9  |       | 7,845    |       | 204,194  |       |
| Series 10 |       | 15,611   |       | 38,979   |       |
| Series 11 |       | 82,845   |       | 295,582  |       |
| Series 12 |       | 95,557   |       | 156,160  |       |
| Series 14 |       | 41,462   |       | 52,498   |       |
|           |       | $        | 243,320    |     | $          | 877,589 |   |

 

A loss in value of an investment in anoperating limited partnership other than a temporary decline is recorded as animpairment loss.  Impairment is measuredby comparing the investment carrying amount to the sum of the total amount ofthe remaining tax credits allocated to the partnership and the estimatedresidual value of the investment.  Inaddition,

 

F-32

----

 

Boston Capital TaxCredit Fund II Limited Partnership -

Series 7, 9through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31,2008 and 2007

 

NOTE A - ORGANIZATION AND SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Investments in Operating Limited Partnerships(Continued)

 

deferred acquisition fees related to eachinvestment are evaluated for impairment when an impairment loss has reduced aninvestment balance to zero.  Accordingly,the partnership recorded an impairment loss of $143,050 and $332,494, duringthe years ended March 31, 2008 and 2007, respectively.

 

Capital contributions to operating limitedpartnerships are adjusted by tax credit adjusters.  Tax credit adjusters are defined asadjustments to operating limited partnership capital contributions due toreductions in actual tax credits from those originally projected.  The partnership records tax credit adjustersas a reduction in investments in operating limited partnerships and capitalcontributions payable.

 

The operating limited partnerships maintaintheir financial statements based on a calendar year and the partnershiputilizes a March 31 year-end.  Thefund records losses and income from the operating limited partnerships on acalendar year basis which is not materially different from losses and incomegenerated if the operating limited partnerships utilized a March 31year-end.

 

The partnership records capital contributionspayable to the operating limited partnerships once there is a bindingobligation to fund a specified amount. The operating limited partnerships record capital contributions from thepartnership when received.

 

The partnership records certain acquisitioncosts as an increase in its investments in operating limited partnerships.  Certain operating limited partnerships havenot recorded the acquisition costs as a capital contribution from thepartnership.  These differences are shownas reconciling items in note C.

 

F-33

----

 

Boston Capital TaxCredit Fund II Limited Partnership -

Series 7, 9through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31,2008 and 2007

 

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (Continued)

 

Investments in Operating Limited Partnerships(Continued)

 

As of March 31, 2004, the partnership adopted FASB Interpretation No. 46- Revised (“FIN 46R”), “Consolidation of Variable Interest Entities.”** FIN 46R providesguidance on when a company should include the assets, liabilities, andactivities of a variable interest entity (“VIE”) in its financial statementsand when it should disclose information about its relationship with a VIE. AVIE is a legal structure used to conduct activities or hold assets, which mustbe consolidated by a company if it is the primary beneficiary because itabsorbs the majority of the entity’s expected losses, the majority of theexpected residual returns, or both.

 

Based on the guidance of FIN 46R, the operating limited partnerships inwhich the partnership invests in meet the definition of a VIE.  However, management does not consolidate thepartnership’s interests in these VIEs under FIN 46R, as it is not considered tobe the primary beneficiary.  Thepartnership currently records the amount of its investment in thesepartnerships as an asset in the balance sheets, recognizes its share ofpartnership income or losses in the statements of operations, and discloses howit accounts for material types of these investments in the financialstatements.

 

The partnership’s balance in investment in operating limitedpartnerships, plus the risk of recapture of tax credits previously recognizedon these investments, represents its maximum exposure to loss.  The partnership’s exposure to loss on thesepartnerships is mitigated by the condition and financial performance of theunderlying properties as well as the strength of the local general partners andtheir guarantee against credit recapture.

 

F-34

----

 

Boston Capital TaxCredit Fund II Limited Partnership -

Series 7, 9through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31,2008 and 2007

 

NOTE A - ORGANIZATION AND SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES (Continued)

 

# CashEquivalents

 

Cash equivalents include moneymarket accounts and repurchase agreements having original maturities at thedate of acquisition of three months or less. The carrying amounts approximate fair value because of the shortmaturity of these instruments.

 

Fiscal Year

 

For financial reporting purposes, thepartnership uses a March 31 year-end, whereas for income tax reportingpurposes, the partnership uses a calendar year. The operating limited partnerships use a calendar year for bothfinancial and income tax reporting.

 

Net Loss per Beneficial Assignee Certificate

 

Net loss per beneficial assignee certificateis calculated based upon the weighted average number of units outstanding.  The weighted average number of unitsoutstanding in each series at March 31, 2008 and 2007 are as follows:

 
| Series 7  |   | 1,036,100  |   |
|----------------|--------|------------|--------|
| Series 9  |   | 4,178,029  |   |
| Series 10 |   | 2,428,925  |   |
| Series 11 |   | 2,489,599  |   |
| Series 12 |   | 2,972,795  |   |
| Series 14 |   | 5,574,290  |   |
|           |   |       |   |
| Total          |   | 18,679,738 |   |

 

F-35

----

 

Boston Capital TaxCredit Fund II Limited Partnership -

Series 7, 9through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31,2008 and 2007

 

NOTE A - ORGANIZATION AND SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES (Continued)

 

# Use ofEstimates

 

The preparation of financial statements inconformity with accounting principles generally accepted in the United Statesof America requires management to make estimates and assumptions that affectthe reported amounts of assets and liabilities and disclosure of contingentassets and liabilities at the date of the financial statements and the reportedamounts of revenue and expenses during the reporting period.  Actual results could differ from thoseestimates.

 

NOTE B - RELATED PARTY TRANSACTIONS

 

During theyears ended March 31, 2008 and 2007, the partnership entered into severaltransactions with various affiliates of the general partner, including BostonCapital Partners, Inc., Boston Capital Holdings Limited Partnership andBoston Capital Asset Management Limited Partnership, as follows:

 

Boston Capital Asset Management Limited Partnership is entitled to anannual partnership management fee based on .5% of the aggregate cost of allapartment complexes acquired by the operating limited partnerships, less theamount of certain partnership management and reporting fees paid or payable bythe operating limited partnerships.  Theaggregate cost is comprised of the capital contributions made by each series tothe operating limited partnerships and 99% of the permanent financing at theoperating limited partnership level.

 

F-36

----

 

Boston Capital TaxCredit Fund II Limited Partnership -

Series 7, 9through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31,2008 and 2007

 

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

 

The fee ispayable without interest as sufficient funds become available from sales orrefinancing proceeds from operating limited partnerships.

 

The annual partnershipmanagement fee charged to operations during the years ended March 31, 2008and 2007 is as follows:

 
| ** **     | ** ** | **2008** | ** ** | **2007** | ** ** |
|----------------|------------|----------|------------|----------|------------|
|           |       |     |       |     |       |
| Series 7  |       | $        | 19,015     |     | $          | 52,291 |   |
| Series 9  |       | 296,961  | ** ** | 340,784  | ** ** |
| Series 10 |       | 161,087  |       | 218,676  |       |
| Series 11 |       | 245,690  |       | 305,140  |       |
| Series 12 |       | 198,649  |       | 308,779  |       |
| Series 14 |       | 575,939  |       | 656,566  |       |
|           |       |     |       |     |       |
|           |       | $        | 1,497,341  |     | $          | 1,882,236 |   |

 

The reporting fees paid by theOperating Partnerships for the years ended March 31, 2008 and 2007 is asfollows:

 
| ** **     | ** ** | **2008** | ** ** | **2007** | ** ** |
|----------------|------------|----------|------------|----------|------------|
|           |       |     |       |     |       |
| Series 7  |       | $        | 12,355     |     | $          | 20,005 |   |
| Series 9  |       | 29,954   |       | 36,854   |       |
| Series 10 |       | 93,320   |       | 22,937   |       |
| Series 11 |       | 50,499   |       | 133,737  |       |
| Series 12 |       | 46,115   |       | 231,670  |       |
| Series 14 |       | 139,181  |       | 151,165  |       |
|           |       |     |       |     |       |
|           |       | $        | 371,424    |     | $          | 596,368 |   |

 

F-37

----

 

Boston Capital TaxCredit Fund II Limited Partnership -

Series 7, 9through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31,2008 and 2007

 

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

 

The partnership management fees paid for the years ended March 31,2008 and 2007 are as follows:

 
| ** **     | ** ** | **2008**  | ** ** | **2007** | ** ** |
|----------------|------------|-----------|------------|----------|------------|
|           |       |      |       |     |       |
| Series 7  |       | $         | 512,500    |     | $          | 776,159 |   |
| Series 9  |       | 120,000   |       | 15,232   |       |
| Series 10 |       | 699,512   |       | 556,825  |       |
| Series 11 |       | 1,104,677 |       | 762,873  |       |
| Series 12 |       | 449,835   |       | 825,968  |       |
| Series 14 |       | 408,277   |       | 412,766  |       |
|           |       |      |       |     |       |
|           |       | $         | 3,294,801  |     | $          | 3,349,823 |   |

 

An affiliate of the generalpartner of the Partnership advanced funds to pay some operating expenses of thePartnership, and to make advances and/or loans to Operating Partnerships. Theseadvances are included in Accounts payable-affiliates. The total advances fromthe affiliate of the general partner to the Operating Partnerships for the yearended March 31, 2008 and 2007 are as follows:

 
| ** **     | ** ** | **2008** | ** ** | **2007** | ** ** |
|----------------|------------|----------|------------|----------|------------|
|           |       |     |       |     |       |
| Series 7  |       | $        | 322,613    |     | $          | 322,613 |   |
| Series 9  |       | —   |       | —   |       |
| Series 10 |       | —   |       | —   |       |
| Series 11 |       | 99,461   |       | 99,461   |       |
| Series 12 |       | 153,188  |       | 215,738  |       |
| Series 14 |       | 172,658  |       | 172,658  |       |
|           |       |     |       |     |       |
|           |       | $        | 747,920    |     | $          | 810,470 |   |

 

All payables to affiliates will be paid,without interest, from available cash flow or the proceeds of sales orrefinancing of the Partnership’s interests in Operating Partnerships.

 

F-38

----

 

Boston Capital TaxCredit Fund II Limited Partnership -

Series 7, 9through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31,2008 and 2007

 

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

 

General and administrativeexpenses incurred by Boston Capital Partners, Inc., Boston CapitalHoldings Limited Partnership and Boston Capital Asset Management LimitedPartnership during the years ended March 31, 2008 and 2007 charged to eachseries’ operations are as follows:

 
| ** **     | ** ** | **2008** | ** ** | **2007** | ** ** |
|----------------|------------|----------|------------|----------|------------|
|           |       |     |       |     |       |
| Series 7  |       | $        | 8,545      |     | $          | 7,517 |   |
| Series 9  |       | 15,821   |       | 15,453   |       |
| Series 10 |       | 13,098   |       | 12,994   |       |
| Series 11 |       | 13,182   |       | 12,750   |       |
| Series 12 |       | 14,703   |       | 14,939   |       |
| Series 14 |       | 28,984   |       | 30,219   |       |
|           |       |     |       |     |       |
|           |       | $        | 94,333     |     | $          | 93,872 |   |

 

The Partnership had previously recorded andpaid BCAMLP in connection with the disposition of certain OperatingPartnerships certain amounts which were incorrectly referred to as salespreparation fees. The payments were actually for reimbursement of overhead andsalary expenses incurred by Boston Capital and its Affiliates in connectionwith the disposition of the related Operating Partnerships.

 

Accounts payable - affiliatesat March 31, 2008 and 2007 represents general and administrative expenses,partnership management fees, and may include advances which are payable toBoston Capital Holdings Limited Partnership and Boston Capital Asset ManagementLimited Partnership.  The carrying valueof accounts payable - affiliates approximates fair value.

 

F-39

----

 

Boston Capital TaxCredit Fund II Limited Partnership -

Series 7, 9through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31,2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITEDPARTNERSHIPS

 

At March 31,2008 and 2007, the partnership has limited partnership interests in operatinglimited partnerships which own operating apartment complexes.  During the year ended March 31, 2008,the partnership disposed of its operating limited partnership interest in four,six, eleven, ten, four, and four of the operating limited partnerships owned bySeries 7, Series 9, Series 10, Series 11, Series 12and Series 14, respectively. During the year ended March 31, 2007,the partnership disposed of its operating limited partnership interest in one,two, two, two, eleven, and ten of the operating limited partnerships owned by Series 7,Series 9, Series 10, Series 11, Series 12 and Series 14,respectively.  The number of operatinglimited partnerships in which the partnership has limited partnership interestsat March 31, 2008 and 2007 by series are as follows:

 
| ** **     | ** ** | **2008** | ** ** | **2007** | ** ** |
|----------------|------------|----------|------------|----------|------------|
|           |       |     |       |     |       |
| Series 7  |       | 3        |       | 7        |       |
| Series 9  |       | 32       |       | 38       |       |
| Series 10 |       | 22       |       | 33       |       |
| Series 11 |       | 25       |       | 35       |       |
| Series 12 |       | 33       |       | 37       |       |
| Series 14 |       | 75       |       | 79       |       |
|           |       |     |       |     |       |
|           |       | 190      |       | 229      |       |

 

F-40

----

** **

Boston Capital TaxCredit Fund II Limited Partnership -

Series 7, 9through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31,2008 and 2007

 

NOTE C - INVESTMENTS INOPERATING LIMITED PARTNERSHIPS (Continued)

 

During the year ended March 31,2008 the partnership disposed of thirty-nine of the operating limitedpartnerships. A summary of the dispositions by Series for March 31,2008 is as follows:

 
| ** **     | ** ** | **Operating  Partnership  Interest Sold** | ** ** | **Sale of  Underlying  Property** | ** ** | **Partnership  Proceeds from  Disposition** | ** ** | **Gain/(Loss) on  Disposition** | ** ** |
|----------------|------------|------------------------------------------------|------------|----------------------------------------|------------|--------------------------------------------------|------------|--------------------------------------|------------|
| Series 7  |       | —                                         |       | 4                                      |       | $                                                | 168,901    |                                 | $          | 168,901 |   |
| Series 9  |       | 1                                              |       | 5                                      |       | 160,198                                          |       | 160,198                              |       |
| Series 10 |       | —                                         |       | 11                                     |       | 467,041                                          |       | 370,777                              |       |
| Series 11 |       | —                                         |       | 10                                     |       | 1,052,572                                        |       | 1,026,080                            |       |
| Series 12 |       | 1                                              |       | 3                                      |       | 124,500                                          |       | 54,728                               |       |
| Series 14 |       | 1                                              |       | 3                                      |       | 67,695                                           |       | 67,695                               |       |
| Total          |       | 3                                              |       | 36                                     |       | $                                                | 2,040,907  |                                 | $          | 1,851,079 |   |

 

During the year ended March 31,2007 the partnership disposed of twenty-eight of the operating limitedpartnerships. A summary of the dispositions by Series for March 31,2007 is as follows:

 
| ** **     | ** ** | **Operating  Partnership  Interest Sold** | ** ** | **Sale of  Underlying  Property** | ** ** | **Partnership  Proceeds from  Disposition** | ** ** | **Gain/(Loss) on  Disposition** | ** ** |
|----------------|------------|------------------------------------------------|------------|----------------------------------------|------------|--------------------------------------------------|------------|--------------------------------------|------------|
| Series 7  |       | —                                         |       | 1                                      |       | $                                                | 36,300     |                                 | $          | 363,220 |   |
| Series 9  |       | —                                         |       | 2                                      |       | 12,222                                           |       | 12,222                               |       |
| Series 10 |       | —                                         |       | 2                                      |       | 546,095                                          |       | 487,978                              |       |
| Series 11 |       | —                                         |       | 2                                      |       | 364,130                                          |       | 364,130                              |       |
| Series 12 |       | 8                                         |       | 3                                      |       | 892,008                                          |       | 874,053                              |       |
| Series 14 |       | 10                                             |       | —                                 |       | 398,237                                          |       | 374,448                              |       |
| Total          |       | 18                                        |       | 10                                     |       | $                                                | 2,248,992  |                                 | $          | 2,476,051 |   |

 

F-41

----

 

Boston Capital TaxCredit Fund II Limited Partnership -

Series 7, 9through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31,2008 and 2007

 

NOTE C - INVESTMENTS INOPERATING LIMITED PARTNERSHIPS (Continued)

 

Under the terms of the partnership’s investments in each operatinglimited partnership, the partnership is required to make capital contributionsto the operating limited partnerships. These contributions are payable ininstallments over several years upon each operating limited partnershipachieving specified levels of construction or operations.

 

Thecontributions payable to operating limited partnerships at March 31, 2008and 2007 by series are as follows:

 
| ** **     | ** ** | **2008** | ** ** | **2007** | ** ** |
|----------------|------------|----------|------------|----------|------------|
|           |       |     |       |     |       |
| Series 7  |       | $        | —     |     | $          | — |   |
| Series 9  |       | —   |       | —   |       |
| Series 10 |       | —   |       | —   |       |
| Series 11 |       | —   |       | 22,528   |       |
| Series 12 |       | 9,241    |       | 11,405   |       |
| Series 14 |       | 192,412  |       | 202,412  |       |
|           |       |     |       |     |       |
|           |       | $        | 201,653    |     | $          | 236,345 |   |

 

F-42

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS INOPERATING LIMITED PARTNERSHIPS (Continued)

 

Thepartnership’s investments in operating limited partnerships at March 31, 2008are summarized as follows:

 
| ** **                                                                                                                                                                                                                                                                                                                                          | ** ** | **Total**   | ** **  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------|-------------|
| Capital contributions paid and to be paid  to operating limited partnerships, net of tax credit adjusters                                                                                                                                                                                                                                           |       | $           | 69,783,417  |   |
|                                                                                                                                                                                                                                                                                                                                                |       |        |        |
| Acquisition costs of operating limited  partnerships                                                                                                                                                                                                                                                                                                |       | 8,306,157   |        |
|                                                                                                                                                                                                                                                                                                                                                |       |        |        |
| Cumulative distributions from operating  limited partnerships                                                                                                                                                                                                                                                                                       |       | (728,157    | )           |
|                                                                                                                                                                                                                                                                                                                                                |       |        |        |
| Cumulative impairment loss in investments  in operating limited partnerships                                                                                                                                                                                                                                                                        |       | (5,963,069  | )           |
|                                                                                                                                                                                                                                                                                                                                                |       |        |        |
| Cumulative losses from operating limited  partnerships                                                                                                                                                                                                                                                                                              |       | (69,388,281 | )           |
|                                                                                                                                                                                                                                                                                                                                                |       |        |        |
| Investments in operating limited  partnerships per balance sheets                                                                                                                                                                                                                                                                                   |       | 2,010,067   |        |
|                                                                                                                                                                                                                                                                                                                                                |       |        |        |
| The partnership (has recorded) has not  recorded capital contributions to the operating limited partnerships during  the year ended March 31, 2008, which (have not) have been included in the  partnerships’ capital account included in the operating limited partnerships’  financial statements as of December 31, 2007 (see note A). |       | (177,532    | )           |
|                                                                                                                                                                                                                                                                                                                                                |       |        |        |
| The partnership has recorded acquisition  costs at March 31, 2008, which have not been recorded in the net assets of  the operating limited partnerships (see note A).                                                                                                                                                                              |       | (830,228    | )           |
|                                                                                                                                                                                                                                                                                                                                                |       |        |        |
| Cumulative losses from operating limited  partnerships for the three months ended March 31, 1999, which the operating  limited partnerships have not included in their capital as of December 31,  1998 due to different year ends (see note A).                                                                                                    |       | 1,536,040   |        |
|                                                                                                                                                                                                                                                                                                                                                |       |        |        |
| Equity in losses from operating limited  partnerships not recognizable under the equity method of accounting (see note  A).                                                                                                                                                                                                                         |       | (39,267,643 | )           |
|                                                                                                                                                                                                                                                                                                                                                |       |        |        |
| The partnership has recorded low-income  housing tax credit adjusters not recorded by operating limited partnerships  (see note A).                                                                                                                                                                                                                 |       | 680,675     |        |
|                                                                                                                                                                                                                                                                                                                                                |       |        |        |
| Cumulative impairment loss in investments  in operating limited partnerships                                                                                                                                                                                                                                                                        |       | 5,963,069   |        |
|                                                                                                                                                                                                                                                                                                                                                |       |        |        |
| Other                                                                                                                                                                                                                                                                                                                                               |       | 1,556,108   |        |
|                                                                                                                                                                                                                                                                                                                                                |       |        |        |
| Equity per operating limited partnerships’  combined financial statements                                                                                                                                                                                                                                                                      |       | $           | (28,529,444 | ) |

 

F-43

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS INOPERATING LIMITED PARTNERSHIPS (Continued)

 

Thepartnership’s investments in operating limited partnerships at March 31, 2008are summarized as follows:

 
| ** **                                                                                                | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
|                                                                                                      |       |              |       |              |       |               |       |
| Capital contributions paid and to be paid  to operating limited partnerships, net of tax credit adjusters |       | $                 | 406,523    |              | $          | 12,635,002         |       | $ | 6,047,145 |   |
|                                                                                                      |       |              |       |              |       |               |       |
| Acquisition costs of operating limited  partnerships                                                      |       | 13,635            |       | 1,644,427         |       | 717,588            |       |
|                                                                                                      |       |              |       |              |       |               |       |
| Cumulative distributions from operating  limited partnerships                                             |       | —            |       | (28,246           | )          | (30,869            | )          |
|                                                                                                      |       |              |       |              |       |               |       |
| Cumulative impairment loss in investments  in operating limited partnerships                              |       | —            |       | (369,919          | )          | (512,842           | )          |
|                                                                                                      |       |              |       |              |       |               |       |
| Cumulative losses from operating limited  partnerships                                                    |       | (420,158          | )          | (13,881,264       | )          | (6,094,519         | )          |
|                                                                                                      |       |              |       |              |       |               |       |
| Investments in operating limited  partnerships per balance sheets                                         |       | —            |       | —            |       | 126,503            |       |
|                                                                                                           |            |                   |            |                   |            |                    |            |  |  |  |

 

F-44

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 
| ** **                                                                                                                                                                                                                                                                                                                                          | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                |       |              |       |              |       |               |       |
| The partnership (has recorded) has not  recorded capital contributions to the operating limited partnerships during  the year ended March 31, 2008, which (have not) have been included in the  partnerships’ capital account included in the operating limited partnerships’  financial statements as of December 31, 2007 (see note A). |       | —            |       | —            |       | —             |       |
|                                                                                                                                                                                                                                                                                                                                                |       |              |       |              |       |               |       |
| The partnership has recorded acquisition  costs at March 31, 2008, which have not been recorded in the net assets of  the operating limited partnerships (see note A).                                                                                                                                                                              |       | 2,338             |       | (125,427          | )          | (2,384             | )          |
|                                                                                                                                                                                                                                                                                                                                                |       |              |       |              |       |               |       |
| Cumulative losses from operating limited  partnerships for the three months ended March 31, 1999, which the operating  limited partnerships have not included in their capital as of December 31,  1998 due to different year ends (see note A).                                                                                                    |       | —            |       | —            |       | —             |       |
|                                                                                                                                                                                                                                                                                                                                                |       |              |       |              |       |               |       |
| Equity in losses from operating limited  partnerships not recognizable under the equity method of accounting (see note  A).                                                                                                                                                                                                                         |       | (442,074          | )          | (11,077,219       | )          | (3,269,380         | )          |
|                                                                                                                                                                                                                                                                                                                                                |       |              |       |              |       |               |       |
| The partnership has recorded low-income  housing tax credit adjusters not recorded by operating limited partnerships  (see note A).                                                                                                                                                                                                                 |       | 359               |       | 45,429            |       | 40,524             |       |
|                                                                                                                                                                                                                                                                                                                                                |       |              |       |              |       |               |       |
| Cumulative impairment loss in investments  in operating limited partnerships                                                                                                                                                                                                                                                                        |       | —            |       | 369,919           |       | 512,842            |       |
|                                                                                                                                                                                                                                                                                                                                                |       |              |       |              |       |               |       |
| Other                                                                                                                                                                                                                                                                                                                                               |       | 9,424             |       | 589,001           |       | 113,987            |       |
|                                                                                                                                                                                                                                                                                                                                                |       |              |       |              |       |               |       |
| Equity per operating limited partnerships’  combined financial statements                                                                                                                                                                                                                                                                      |       | $                 | (429,953   | )                 | $          | (10,198,297        | )          | $ | (2,477,908 | ) |
|                                                                                                                                                                                                                                                                                                                                                     |            |                   |            |                   |            |                    |            |  |  |  |

 

F-45

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS INOPERATING LIMITED PARTNERSHIPS (Continued)

 

Thepartnership’s investments in operating limited partnerships at March 31, 2008are summarized as follows:

 
| ** **                                                                                                | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
|                                                                                                      |       |               |       |               |       |               |       |
| Capital contributions paid and to be paid  to operating limited partnerships, net of tax credit adjusters |       | $                  | 13,362,405 |               | $          | 8,521,950          |       | $ | 28,810,392 |   |
|                                                                                                      |       |               |       |               |       |               |       |
| Acquisition costs of operating limited  partnerships                                                      |       | 1,219,386          |       | 994,371            |       | 3,716,750          |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Cumulative distributions from operating  limited partnerships                                             |       | (410,796           | )          | (44,867            | )          | (213,379           | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Cumulative impairment loss in investments  in operating limited partnerships                              |       | (1,498,289         | )          | (1,024,070         | )          | (2,557,949         | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Cumulative losses from operating limited  partnerships                                                    |       | (11,500,046        | )          | (8,447,384         | )          | (29,044,910        | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Investments in operating limited  partnerships per balance sheets                                         |       | 1,172,660          |       | —             |       | 710,904            |       |
|                                                                                                           |            |                    |            |                    |            |                    |            |  |  |  |

 

F-46

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 
| ** **                                                                                                                                                                                                                                                                                                                                                         | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| The partnership (has recorded) has not  recorded capital contributions to the operating limited partnerships during  the year ended March 31, 2008, which (have not) have been included in  the partnerships’ capital account included in the operating limited  partnerships’ financial statements as of December 31, 2007 (see note A). |       | —             |       | —             |       | (177,532           | )          |
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| The partnership has recorded acquisition  costs at March 31, 2008, which have not been recorded in the net assets  of the operating limited partnerships (see note A).                                                                                                                                                                                        |       | (11,938            | )          | (83,059            | )          | (609,758           | )          |
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| Cumulative losses from operating limited  partnerships for the three months ended March 31, 1999, which the  operating limited partnerships have not included in their capital as of December 31,  1998 due to different year ends (see note A).                                                                                                         |       | —             |       | 279,923            |       | 1,256,117          |       |
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| Equity in losses from operating limited  partnerships not recognizable under the equity method of accounting (see note  A).                                                                                                                                                                                                                                        |       | (4,446,780         | )          | (6,375,451         | )          | (13,656,739        | )          |
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| The partnership has recorded low-income  housing tax credit adjusters not recorded by operating limited partnerships  (see note A).                                                                                                                                                                                                                           |       | 101,163            |       | 190,682            |       | 302,518            |       |
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| Cumulative impairment loss in investments  in operating limited partnerships                                                                                                                                                                                                                                                                                       |       | 1,498,289          |       | 1,024,070          |       | 2,557,949          |       |
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| Other                                                                                                                                                                                                                                                                                                                                                              |       | 633,114            |       | 164,193            |       | 46,389             |       |
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| Equity per operating limited partnerships’  combined financial statements                                                                                                                                                                                                                                                                                     |       | $                  | (1,053,492 | )                  | $          | (4,799,642         | )          | $ | (9,570,152 | ) |
|                                                                                                                                                                                                                                                                                                                                                                    |            |                    |            |                    |            |                    |            |  |  |  |

 

F-47

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

Thepartnership’s investments in operating limited partnerships at March 31,2007 are summarized as follows:

 
| ** **                                                                                                                                                                                                                                                                                                                                                    | ** ** | **Total**   | ** **  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------|-------------|
| Capital contributions paid and to be paid  to operating limited partnerships, net of tax credit adjusters                                                                                                                                                                                                                                                     |       | $           | 83,383,561  |   |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Acquisition costs of operating limited  partnerships                                                                                                                                                                                                                                                                                                          |       | 9,905,206   |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Cumulative distributions from operating  limited partnerships                                                                                                                                                                                                                                                                                                 |       | (665,684    | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Cumulative impairment loss in investments  in operating limited partnerships                                                                                                                                                                                                                                                                                  |       | (8,628,867  | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Cumulative losses from operating limited  partnerships                                                                                                                                                                                                                                                                                                        |       | (81,204,005 | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Investments in operating limited  partnerships per balance sheets                                                                                                                                                                                                                                                                                             |       | 2,790,211   |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| The partnership (has recorded) has not  recorded capital contributions to the operating limited partnerships during  the year ended March 31, 2007, which (have not) have been included in  the partnerships’ capital account included in the operating limited  partnerships’ financial statements as of December 31, 2006 (see note A). |       | (187,532    | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| The partnership has recorded acquisition  costs at March 31, 2007, which have not been recorded in the net assets  of the operating limited partnerships (see note A).                                                                                                                                                                                   |       | (1,404,005  | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Cumulative losses from operating limited  partnerships for the three months ended March 31, 1999, which the  operating limited partnerships have not included in their capital as of  December 31, 1998 due to different year ends (see note A).                                                                                                    |       | 1,647,149   |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Equity in losses from operating limited  partnerships not recognizable under the equity method of accounting (see note  A).                                                                                                                                                                                                                                   |       | (45,224,475 | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| The partnership has recorded low-income  housing tax credit adjusters not recorded by operating limited partnerships  (see note A).                                                                                                                                                                                                                           |       | 717,259     |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Cumulative impairment loss in investments  in operating limited partnerships                                                                                                                                                                                                                                                                                  |       | 8,628,867   |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Other                                                                                                                                                                                                                                                                                                                                                         |       | 1,381,787   |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Equity per operating limited partnerships’  combined financial statements                                                                                                                                                                                                                                                                                |       | $           | (31,650,739 | ) |

 

F-48

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The partnership’s investments in operatinglimited partnerships at March 31, 2007 are summarized as follows:

 
| ** **                                                                                                | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
|                                                                                                      |       |              |       |              |       |               |       |
| Capital contributions paid and to be paid  to operating limited partnerships, net of tax credit adjusters |       | $                 | 1,239,337  |              | $          | 14,833,709         |       | $ | 9,837,872 |   |
|                                                                                                      |       |              |       |              |       |               |       |
| Acquisition costs of operating limited  partnerships                                                      |       | 195,338           |       | 1,862,141         |       | 1,163,183          |       |
|                                                                                                      |       |              |       |              |       |               |       |
| Cumulative distributions from operating  limited partnerships                                             |       | (2,787            | )          | (29,896           | )          | (19,203            | )          |
|                                                                                                      |       |              |       |              |       |               |       |
| Cumulative impairment loss in investments  in operating limited partnerships                              |       | (86,382           | )          | (369,919          | )          | (534,606           | )          |
|                                                                                                      |       |              |       |              |       |               |       |
| Cumulative losses from operating limited  partnerships                                                    |       | (1,345,506        | )          | (16,296,035       | )          | (10,212,448        | )          |
|                                                                                                      |       |              |       |              |       |               |       |
| Investments in operating limited  partnerships per balance sheets                                         |       | —            |       | —            |       | 234,798            |       |
|                                                                                                           |            |                   |            |                   |            |                    |            |  |  |  |

 

F-49

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 
| ** **                                                                                                                                                                                                                                                                                                                                                    | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| The partnership (has recorded) has not  recorded capital contributions to the operating limited partnerships during  the year ended March 31, 2007, which (have not) have been included in  the partnerships’ capital account included in the operating limited  partnerships’ financial statements as of December 31, 2006 (see note A). |       | —            |       | —            |       | —             |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| The partnership has recorded acquisition  costs at March 31, 2007, which have not been recorded in the net assets  of the operating limited partnerships (see note A).                                                                                                                                                                                   |       | (5,643            | )          | (125,427          | )          | (18,725            | )          |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| Cumulative losses from operating limited  partnerships for the three months ended March 31, 1999, which the  operating limited partnerships have not included in their capital as of  December 31, 1998 due to different year ends (see note A).                                                                                                    |       | —            |       | —            |       | —             |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| Equity in losses from operating limited  partnerships not recognizable under the equity method of accounting (see note  A).                                                                                                                                                                                                                                   |       | (1,257,774        | )          | (12,041,879       | )          | (5,608,777         | )          |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| The partnership has recorded low-income  housing tax credit adjusters not recorded by operating limited partnerships  (see note A).                                                                                                                                                                                                                           |       | 359               |       | 49,337            |       | 55,709             |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| Cumulative impairment loss in investments  in operating limited partnerships                                                                                                                                                                                                                                                                                  |       | 86,382            |       | 369,919           |       | 534,606            |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| Other                                                                                                                                                                                                                                                                                                                                                         |       | 33,704            |       | 429,351           |       | 305,289            |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| Equity per operating limited partnerships’  combined financial statements                                                                                                                                                                                                                                                                                |       | $                 | (1,142,972 | )                 | $          | (11,318,699        | )          | $ | (4,497,100 | ) |
|                                                                                                                                                                                                                                                                                                                                                               |            |                   |            |                   |            |                    |            |  |  |  |

 

F-50

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The partnership’s investments in operatinglimited partnerships at March 31, 2007 are summarized as follows:

 
| ** **                                                                                                | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
|                                                                                                      |       |               |       |               |       |               |       |
| Capital contributions paid and to be paid  to operating limited partnerships, net of tax credit adjusters |       | $                  | 16,768,503 |               | $          | 10,065,846         |       | $ | 30,638,294 |   |
|                                                                                                      |       |               |       |               |       |               |       |
| Acquisition costs of operating limited  partnerships                                                      |       | 1,598,344          |       | 1,222,006          |       | 3,864,194          |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Cumulative distributions from operating  limited partnerships                                             |       | (399,870           | )          | (44,867            | )          | (169,061           | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Cumulative impairment loss in investments  in operating limited partnerships                              |       | (3,447,876         | )          | (1,352,077         | )          | (2,838,007         | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Cumulative losses from operating limited  partnerships                                                    |       | (12,950,640        | )          | (9,821,136         | )          | (30,578,240        | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Investments in operating limited  partnerships per balance sheets                                         |       | 1,568,461          |       | 69,772             |       | 917,180            |       |
|                                                                                                           |            |                    |            |                    |            |                    |            |  |  |  |

 

F-51

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 
| ** **                                                                                                                                                                                                                                                                                                                                                         | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| The partnership (has recorded) has not  recorded capital contributions to the operating limited partnerships during  the year ended March 31, 2007, which (have not) have been included in  the partnerships’ capital account included in the operating limited  partnerships’ financial statements as of December 31, 2006 (see note A). |       | (10,000            | )          | —             |       | (177,532           | )          |
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| The partnership has recorded acquisition  costs at March 31, 2007, which have not been recorded in the net assets  of the operating limited partnerships (see note A).                                                                                                                                                                                        |       | (277,649           | )          | (286,566           | )          | (689,995           | )          |
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| Cumulative losses from operating limited  partnerships for the three months ended March 31, 1999, which the  operating limited partnerships have not included in their capital as of  December 31, 1998 due to different year ends (see note A).                                                                                                         |       | —             |       | 324,400            |       | 1,322,749          |       |
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| Equity in losses from operating limited  partnerships not recognizable under the equity method of accounting (see note  A).                                                                                                                                                                                                                                        |       | (6,609,039         | )          | (6,252,903         | )          | (13,454,103        | )          |
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| The partnership has recorded low-income  housing tax credit adjusters not recorded by operating limited partnerships  (see note A).                                                                                                                                                                                                                                |       | 104,214            |       | 192,211            |       | 315,429            |       |
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| Cumulative impairment loss in investments  in operating limited partnerships                                                                                                                                                                                                                                                                                       |       | 3,447,876          |       | 1,352,077          |       | 2,838,007          |       |
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| Other                                                                                                                                                                                                                                                                                                                                                              |       | 352,437            |       | 160,251            |       | 100,755            |       |
|                                                                                                                                                                                                                                                                                                                                                               |       |               |       |               |       |               |       |
| Equity per operating limited partnerships’  combined financial statements                                                                                                                                                                                                                                                                                     |       | $                  | (1,423,700 | )                  | $          | (4,440,758         | )          | $ | (8,827,510 | ) |
|                                                                                                                                                                                                                                                                                                                                                                    |            |                    |            |                    |            |                    |            |  |  |  |

 

F-52

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of theoperating limited partnerships in which Series 7, 9 through 12, and 14hold an interest at December 31, 2007 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 
| ** **                                                   | ** ** | **Total**   | ** **  | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|--------------------------------------------------------------|------------|-------------|-------------|-------------------|------------|-------------------|------------|--------------------|------------|
| ASSETS                                                       |       |        |        |              |       |              |       |               |       |
|                                                         |       |        |        |              |       |              |       |               |       |
| Buildings and improvements, net of  accumulated depreciation |       | $           | 160,253,127 |              | $          | 838,657           |       | $                  | 30,224,320 |   | $ | 15,401,235 |   |
| Land                                                         |       | 15,082,192  |        | 73,738            |       | 2,831,713         |       | 1,278,694          |       |
| Other assets                                                 |       | 31,572,850  |        | 310,014           |       | 5,154,046         |       | 2,969,332          |       |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | $           | 206,908,169 |              | $          | 1,222,409         |       | $                  | 38,210,079 |   | $ | 19,649,261 |   |
|                                                         |       |        |        |              |       |              |       |               |       |
| LIABILITIES  AND PARTNERS’ CAPITAL (DEFICIT)            |       |        |        |              |       |              |       |               |       |
|                                                         |       |        |        |              |       |              |       |               |       |
| Mortgages and construction loans payable                     |       | $           | 215,224,589 |              | $          | 1,623,610         |       | $                  | 43,670,402 |   | $ | 20,498,947 |   |
| Accounts payable and accrued expenses                        |       | 7,420,908   |        | $                 | 4,573      |              | 3,677,211  |               | 246,081    |   |
| Other liabilities                                            |       | 11,038,253  |        | 23,242            |       | 3,032,165         |       | 337,810            |       |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | 233,683,750 |        | 1,651,425         |       | 50,379,778        |       | 21,082,838         |       |
|                                                         |       |        |        |              |       |              |       |               |       |
| PARTNERS’ CAPITAL (DEFICIT)                             |       |        |        |              |       |              |       |               |       |
| Boston Capital Tax Credit Fund II Limited  Partnership       |       | (28,529,444 | )           | (429,953          | )          | (10,198,297       | )          | (2,477,908         | )          |
| Other partners                                               |       | 1,753,863   |        | 937               |       | (1,971,402        | )          | 1,044,331          |       |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | (26,775,581 | )           | (429,016          | )          | (12,169,699       | )          | (1,433,577         | )          |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | $           | 206,908,169 |              | $          | 1,222,409         |       | $                  | 38,210,079 |   | $ | 19,649,261 |   |

 

F-53

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of theoperating limited partnerships in which Series 7, 9 through 12, and 14hold an interest at December 31, 2007 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS -CONTINUED

 
| ** **                                                   | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|--------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
| ASSETS                                                       |       |               |       |               |       |               |       |
|                                                         |       |               |       |               |       |               |       |
| Buildings and improvements, net of  accumulated depreciation |       | $                  | 24,731,983 |               | $          | 20,863,074         |       | $ | 68,193,858 |   |
| Land                                                         |       | 2,117,431          |       | 1,887,610          |       | 6,893,006          |       |
| Other assets                                                 |       | 5,956,892          |       | 4,999,999          |       | 12,182,567         |       |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | $                  | 32,806,306 |               | $          | 27,750,683         |       | $ | 87,269,431 |   |
|                                                         |       |               |       |               |       |               |       |
| LIABILITIES  AND PARTNERS’ CAPITAL (DEFICIT)            |       |               |       |               |       |               |       |
|                                                         |       |               |       |               |       |               |       |
| Mortgages and construction loans payable                     |       | $                  | 30,271,628 |               | $          | 30,657,313         |       | $ | 88,502,689 |   |
| Accounts payable and accrued expenses                        |       | 1,000,807          |       | 460,773            |       | 2,031,463          |       |
| Other liabilities                                            |       | 1,253,415          |       | 1,290,717          |       | 5,100,904          |       |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | 32,525,850         |       | 32,408,803         |       | 95,635,056         |       |
|                                                         |       |               |       |               |       |               |       |
| PARTNERS’ CAPITAL (DEFICIT)                             |       |               |       |               |       |               |       |
| Boston Capital Tax Credit Fund II Limited  Partnership       |       | (1,053,492         | )          | (4,799,642         | )          | (9,570,152         | )          |
| Other partners                                               |       | 1,333,948          |       | 141,522            |       | 1,204,527          |       |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | 280,456            |       | (4,658,120         | )          | (8,365,625         | )          |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | $                  | 32,806,306 |               | $          | 27,750,683         |       | $ | 87,269,431 |   |

 

F-54

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of theoperating limited partnerships in which Series 7, 9 through 12, and 14hold an interest at December 31, 2006 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 
| ** **                                                   | ** ** | **Total**   | ** **  | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|--------------------------------------------------------------|------------|-------------|-------------|-------------------|------------|-------------------|------------|--------------------|------------|
| ASSETS                                                       |       |        |        |              |       |              |       |               |       |
|                                                         |       |        |        |              |       |              |       |               |       |
| Buildings and improvements, net of  accumulated depreciation |       | $           | 197,542,798 |              | $          | 4,013,937         |       | $                  | 36,110,502 |   | $ | 23,132,872 |   |
| Land                                                         |       | 18,207,994  |        | 409,614           |       | 3,150,391         |       | 2,143,842          |       |
| Other assets                                                 |       | 35,029,028  |        | 1,119,496         |       | 5,538,050         |       | 4,440,478          |       |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | $           | 250,779,820 |              | $          | 5,543,047         |       | $                  | 44,798,943 |   | $ | 29,717,192 |   |
|                                                         |       |        |        |              |       |              |       |               |       |
| LIABILITIES  AND PARTNERS’ CAPITAL (DEFICIT)            |       |        |        |              |       |              |       |               |       |
|                                                         |       |        |        |              |       |              |       |               |       |
| Mortgages and construction loans payable                     |       | $           | 257,923,536 |              | $          | 6,759,842         |       | $                  | 50,593,900 |   | $ | 32,289,719 |   |
| Accounts payable and accrued expenses                        |       | 8,524,712   |        | 53,405            |       | 3,618,353         |       | 402,651            |       |
| Other liabilities                                            |       | 15,815,885  |        | 90,218            |       | 3,786,228         |       | 996,081            |       |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | 282,264,133 |        | 6,903,465         |       | 57,998,481        |       | 33,688,451         |       |
|                                                         |       |        |        |              |       |              |       |               |       |
| PARTNERS’ CAPITAL (DEFICIT)                             |       |        |        |              |       |              |       |               |       |
| Boston Capital Tax Credit Fund II Limited  Partnership       |       | (31,650,739 | )           | (1,142,972        | )          | (11,318,699       | )          | (4,497,100         | )          |
| Other partners                                               |       | 166,426     |        | (217,446          | )          | (1,880,839        | )          | 525,841            |       |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | (31,484,313 | )           | (1,360,418        | )          | (13,199,538       | )          | (3,971,259         | )          |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | $           | 250,779,820 |              | $          | 5,543,047         |       | $                  | 44,798,943 |   | $ | 29,717,192 |   |

 

F-55

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of theoperating limited partnerships in which Series 7, 9 through 12, and 14hold an interest at December 31, 2006 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS -CONTINUED

 
| ** **                                                   | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|--------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
| ASSETS                                                       |       |               |       |               |       |               |       |
|                                                         |       |               |       |               |       |               |       |
| Buildings and improvements, net of  accumulated depreciation |       | $                  | 33,960,137 |               | $          | 26,157,572         |       | $ | 74,167,778 |   |
| Land                                                         |       | 2,996,331          |       | 2,381,511          |       | 7,126,305          |       |
| Other assets                                                 |       | 6,692,352          |       | 5,296,504          |       | 11,942,148         |       |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | $                  | 43,648,820 |               | $          | 33,835,587         |       | $ | 93,236,231 |   |
|                                                         |       |               |       |               |       |               |       |
| LIABILITIES  AND PARTNERS’ CAPITAL (DEFICIT)            |       |               |       |               |       |               |       |
|                                                         |       |               |       |               |       |               |       |
| Mortgages and construction loans payable                     |       | $                  | 40,439,986 |               | $          | 35,538,440         |       | $ | 92,301,649 |   |
| Accounts payable and accrued expenses                        |       | 1,576,145          |       | 561,796            |       | 2,312,362          |       |
| Other liabilities                                            |       | 2,327,498          |       | 2,500,884          |       | 6,114,976          |       |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | 44,343,629         |       | 38,601,120         |       | 100,728,987        |       |
|                                                         |       |               |       |               |       |               |       |
| PARTNERS’ CAPITAL (DEFICIT)                             |       |               |       |               |       |               |       |
| Boston Capital Tax Credit Fund II Limited  Partnership       |       | (1,423,700         | )          | (4,440,758         | )          | (8,827,510         | )          |
| Other partners                                               |       | 728,891            |       | (324,775           | )          | 1,334,754          |       |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | (694,809           | )          | (4,765,533         | )          | (7,492,756         | )          |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | $                  | 43,648,820 |               | $          | 33,835,587         |       | $ | 93,236,231 |   |

 

F-56

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized statements ofoperations of the operating limited partnerships for the year ended December 31,2007 in which Series 7, 9 through 12, and 14 hold an interest as of December 31,2007 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

Year ended December 31, 2007

 
| ** **                                                                    | ** ** | **Total**  | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|-------------------------------------------------------------------------------|------------|------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
| Revenue                                                                       |       |       |       |              |       |              |       |               |       |
| Rental                                                                        |       | $          | 38,976,937 |              | $          | 293,144           |       | $                  | 7,400,327  |   | $ | 3,617,676 |   |
| Interest and other                                                            |       | 1,594,001  |       | 13,117            |       | 277,819           |       | 120,105            |       |
|                                                                          |       |       |       |              |       |              |       |               |       |
|                                                                          |       | 40,570,938 |       | 306,261           |       | 7,678,146         |       | 3,737,781          |       |
| Expenses                                                                      |       |       |       |              |       |              |       |               |       |
| Interest                                                                      |       | 7,329,396  |       | 74,748            |       | 1,534,651         |       | 592,587            |       |
| Depreciation and amortization                                                 |       | 10,262,996 |       | 93,479            |       | 1,945,017         |       | 1,062,260          |       |
| Taxes and insurance                                                           |       | 5,786,927  |       | 26,943            |       | 1,254,696         |       | 521,070            |       |
| Repairs and maintenance                                                       |       | 8,296,680  |       | 45,888            |       | 1,403,975         |       | 817,317            |       |
| Operating expenses                                                            |       | 13,169,516 |       | 124,298           |       | 2,503,573         |       | 1,143,168          |       |
| Other expenses                                                                |       | 981,306    |       | 11,320            |       | 129,145           |       | 101,558            |       |
|                                                                          |       |       |       |              |       |              |       |               |       |
|                                                                          |       | 45,826,821 |       | 376,676           |       | 8,771,057         |       | 4,237,960          |       |
|                                                                          |       |       |       |              |       |              |       |               |       |
| NET LOSS                                                                      |       | $          | (5,255,883 | )                 | $          | (70,415           | )          | $                  | (1,092,911 | ) | $ | (500,179 | ) |
|                                                                          |       |       |       |              |       |              |       |               |       |
| Net loss allocated to Boston Capital Tax  Credit Fund II Limited Partnership* |       | $          | (4,940,675 | )                 | $          | (69,712           | )          | $                  | (990,934   | ) | $ | (521,211 | ) |
|                                                                          |       |       |       |              |       |              |       |               |       |
| Net income (loss) allocated to other partners                                 |       | $          | (315,208   | )                 | $          | (703              | )          | $                  | (101,977   | ) | $ | 21,032 |   |

 

----

| * | Amounts  include $69,712, $990,934, $522,200, $357,433, $966,259 and $1,661,589 for  Series 7, Series 9, Series 10, Series 11, Series 12  and Series 14, respectively, of loss not recognized under the equity  method of accounting as described in note A. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

F-57

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized statements ofoperations of the operating limited partnerships for the year ended December 31,2007 in which Series 7, 9 through 12, and 14 hold an interest as of December 31,2007 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS- CONTINUED

 

Year ended December 31, 2007

 
| ** **                                                                    | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|-------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
| Revenue                                                                       |       |               |       |               |       |               |       |
| Rental                                                                        |       | $                  | 6,309,326  |               | $          | 4,831,693          |       | $ | 16,524,771 |   |
| Interest and other                                                            |       | 222,371            |       | 188,063            |       | 772,526            |       |
|                                                                          |       |               |       |               |       |               |       |
|                                                                          |       | 6,531,697          |       | 5,019,756          |       | 17,297,297         |       |
| Expenses                                                                      |       |               |       |               |       |               |       |
| Interest                                                                      |       | 1,056,470          |       | 927,699            |       | 3,143,241          |       |
| Depreciation and amortization                                                 |       | 1,693,807          |       | 1,283,446          |       | 4,184,987          |       |
| Taxes and insurance                                                           |       | 1,018,625          |       | 687,762            |       | 2,277,831          |       |
| Repairs and maintenance                                                       |       | 1,303,110          |       | 1,175,362          |       | 3,551,028          |       |
| Operating expenses                                                            |       | 1,936,910          |       | 1,782,827          |       | 5,678,740          |       |
| Other expenses                                                                |       | 145,982            |       | 217,345            |       | 375,956            |       |
|                                                                          |       |               |       |               |       |               |       |
|                                                                          |       | 7,154,904          |       | 6,074,441          |       | 19,211,783         |       |
|                                                                          |       |               |       |               |       |               |       |
| NET LOSS                                                                      |       | $                  | (623,207   | )                  | $          | (1,054,685         | )          | $ | (1,914,486 | ) |
|                                                                          |       |               |       |               |       |               |       |
| Net loss allocated to Boston Capital Tax  Credit Fund II Limited Partnership* |       | $                  | (569,012   | )                  | $          | (966,259           | )          | $ | (1,823,547 | ) |
|                                                                          |       |               |       |               |       |               |       |
| Net income (loss) allocated to other  partners                                |       | $                  | (54,195    | )                  | $          | (88,426            | )          | $ | (90,939 | ) |

 

----

| * | Amounts  include $69,712, $990,934, $522,200, $357,433, $966,259 and $1,661,589 for  Series 7, Series 9, Series 10, Series 11, Series 12  and Series 14, respectively, of loss not recognized under the equity  method of accounting as described in note A. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

F-58

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized statements ofoperations of the operating limited partnerships for the year ended December 31,2006 in which Series 7, 9 through 12, and 14 hold an interest as of December 31,2006 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

Year ended December 31, 2006

 
| ** **                                                                    | ** ** | **Total**  | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|-------------------------------------------------------------------------------|------------|------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
| Revenue                                                                       |       |       |       |              |       |              |       |               |       |
| Rental                                                                        |       | $          | 46,983,307 |              | $          | 976,686           |       | $                  | 8,017,404  |   | $ | 5,391,252 |   |
| Interest and other                                                            |       | 1,647,687  |       | 50,303            |       | 344,649           |       | 215,301            |       |
|                                                                          |       |       |       |              |       |              |       |               |       |
|                                                                          |       | 48,630,994 |       | 1,026,989         |       | 8,362,053         |       | 5,606,553          |       |
| Expenses                                                                      |       |       |       |              |       |              |       |               |       |
| Interest                                                                      |       | 9,805,253  |       | 148,289           |       | 1,774,480         |       | 1,091,445          |       |
| Depreciation and amortization                                                 |       | 13,171,504 |       | 300,643           |       | 2,280,855         |       | 1,583,769          |       |
| Taxes and insurance                                                           |       | 6,995,231  |       | 143,269           |       | 1,312,354         |       | 796,996            |       |
| Repairs and maintenance                                                       |       | 9,885,074  |       | 209,892           |       | 1,780,237         |       | 1,178,898          |       |
| Operating expenses                                                            |       | 16,168,812 |       | 347,183           |       | 2,611,676         |       | 1,761,621          |       |
| Other expenses                                                                |       | 2,292,727  |       | 28,998            |       | 659,819           |       | 93,984             |       |
|                                                                          |       |       |       |              |       |              |       |               |       |
|                                                                          |       | 58,318,601 |       | 1,178,274         |       | 10,419,421        |       | 6,506,713          |       |
|                                                                          |       |       |       |              |       |              |       |               |       |
| NET LOSS                                                                      |       | $          | (9,687,607 | )                 | $          | (151,285          | )          | $                  | (2,057,368 | ) | $ | (900,160 | ) |
|                                                                          |       |       |       |              |       |              |       |               |       |
| Net loss allocated to Boston Capital Tax  Credit Fund II Limited Partnership* |       | $          | (6,947,562 | )                 | $          | (136,309          | )          | $                  | (1,642,836 | ) | $ | (766,987 | ) |
|                                                                          |       |       |       |              |       |              |       |               |       |
| Net income (loss) allocated to other  partners                                |       | $          | (2,740,045 | )                 | $          | (14,976           | )          | $                  | (414,532   | ) | $ | (133,173 | ) |

 

----

| * | Amounts  include $136,309, $1,642,836, $766,987, $1,085,083, $853,035 and $2,463,312  for Series 7, Series 9, Series 10, Series 11,  Series 12 and Series 14, respectively, of loss not recognized under  the equity method of accounting as described in note A. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

F-59

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized statements ofoperations of the operating limited partnerships for the year ended December 31,2006 in which Series 7, 9 through 12, and 14 hold an interest as of December 31,2006 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS- CONTINUED

 

Year ended December 31, 2006

 
| ** **                                                                    | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|-------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
| Revenue                                                                       |       |               |       |               |       |               |       |
| Rental                                                                        |       | $                  | 7,875,460  |               | $          | 8,257,180          |       | $ | 16,465,325 |   |
| Interest and other                                                            |       | 360,599            |       | 206,857            |       | 469,978            |       |
|                                                                          |       |               |       |               |       |               |       |
|                                                                          |       | 8,236,059          |       | 8,464,037          |       | 16,935,303         |       |
| Expenses                                                                      |       |               |       |               |       |               |       |
| Interest                                                                      |       | 1,633,573          |       | 1,838,483          |       | 3,318,983          |       |
| Depreciation and amortization                                                 |       | 2,379,682          |       | 2,293,265          |       | 4,333,290          |       |
| Taxes and insurance                                                           |       | 1,188,110          |       | 1,219,700          |       | 2,334,802          |       |
| Repairs and maintenance                                                       |       | 1,643,210          |       | 1,612,924          |       | 3,459,913          |       |
| Operating expenses                                                            |       | 2,702,883          |       | 2,928,382          |       | 5,817,067          |       |
| Other expenses                                                                |       | 162,837            |       | 141,881            |       | 1,205,208          |       |
|                                                                          |       |               |       |               |       |               |       |
|                                                                          |       | 9,710,295          |       | 10,034,635         |       | 20,469,263         |       |
|                                                                          |       |               |       |               |       |               |       |
| NET INCOME (LOSS)                                                             |       | $                  | (1,474,236 | )                  | $          | (1,570,598         | )          | $ | (3,533,960 | ) |
|                                                                          |       |               |       |               |       |               |       |
| Net loss allocated to Boston Capital Tax  Credit Fund II Limited Partnership* |       | $                  | (1,085,083 | )                  | $          | (853,035           | )          | $ | (2,463,312 | ) |
|                                                                          |       |               |       |               |       |               |       |
| Net income (loss) allocated to other  partners                                |       | $                  | (389,153   | )                  | $          | (717,563           | )          | $ | (1,070,648 | ) |

 

----

| * | Amounts  include $136,309, $1,642,836, $766,987, $1,085,083, $853,035 and $2,463,312  for Series 7, Series 9, Series 10, Series 11, Series 12  and Series 14, respectively, of loss not recognized under the equity  method of accounting as described in note A. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

F-60

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOMETAX RETURN

 

For income tax purposes, the partnershipreports using a December 31 year-end. The partnership’s net income (loss) for financial reporting and taxreturn purposes for the year ended March 31, 2008 is reconciled asfollows:

 
| ** **                                                                                                | ** ** | **Total**  | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
| Net income (loss) for financial reporting  purposes, March 31, 2008                                  |       | $          | (114,374   | )                 | $          | 136,720           |       | $                  | (169,864   | ) | $ | 298,714 |   |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Operating limited partnership rents  received in advance                                                  |       | 2,014      |       | —            |       | 3,732             |       | —             |       |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Accrued partnership management fees not  recognized for tax purposes                                      |       | (1,797,460 | )          | (493,485          | )          | 176,961           |       | (538,425           | )          |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Other                                                                                                     |       | (105,027   | )          | (23,243           | )          | (123,715          | )          | (190,847           | )          |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Operating limited partnership loss not  allowed for financial reporting under equity method of accounting |       | (4,568,127 | )          | (69,712           | )          | (990,934          | )          | (522,200           | )          |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Impairment loss in investment in operating  limited partnership                                           |       | 143,050    |       | —            |       | —            |       | —             |       |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Excess of tax depreciation over book  depreciation on operating limited partnership assets                |       | (1,534,445 | )          | —            |       | (254,591          | )          | (129,994           | )          |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Difference due to fiscal year for book  purposes and calendar year for tax purposes                       |       | 10,240,067 |       | 1,324,290         |       | 2,239,163         |       | 1,957,591          |       |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Income (loss) for tax return purposes,  December 31, 2007                                            |       | $          | 2,265,698  |              | $          | 874,570           |       | $                  | 880,752    |   | $ | 874,839 |   |

 

F-61

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOMETAX RETURN (Continued)

 

For income tax purposes, the partnership reports using a December 31year-end.  The partnership’s net income(loss) for financial reporting and tax return purposes for the year ended March 31,2008 is reconciled as follows:

 
| ** **                                                                                                | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
| Net income (loss) for financial reporting  purposes, March 31, 2008                                  |       | $                  | 426,709    |               | $          | (155,935           | )          | $ | (650,718 | ) |
|                                                                                                      |       |               |       |               |       |               |       |
| Operating limited partnership rents  received in advance                                                  |       | —             |       | —             |       | (1,718             | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Accrued partnership management fees not  recognized for tax purposes                                      |       | (858,987           | )          | (251,186           | )          | 167,662            |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Other                                                                                                     |       | 29,503             |       | 124,769            |       | 78,506             |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Operating limited partnership loss not  allowed for financial reporting under equity method of accounting |       | (357,433           | )          | (966,259           | )          | (1,661,589         | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Impairment loss in investment in operating  limited partnership                                           |       | 143,050            |       | —             |       | —             |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Excess of tax depreciation over book  depreciation on operating limited partnership assets                |       | (215,653           | )          | (231,945           | )          | (702,262           | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Difference due to fiscal year for book  purposes and calendar year for tax purposes                       |       | 13,847             |       | 1,373,537          |       | 3,331,639          |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Income (loss) for tax return purposes,  December 31, 2007                                            |       | $                  | (818,964   | )                  | $          | (107,019           | )          | $ | 561,520 |   |

 

F-62

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TOINCOME TAX RETURN (Continued)

 

For income tax purposes, the partnership reports using a December 31year-end. The partnership’s net income (loss) for financial reporting and taxreturn purposes for the year ended March 31, 2007 is reconciled as follows:

 
| ** **                                                                                                | ** ** | **Total**  | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
| Net income (loss) for financial reporting  purposes, March 31, 2007                                       |       | $          | 249,260    |              | $          | 304,895           |       | $                  | (383,327   | ) | $ | 174,311 |   |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Operating limited partnership rents  received in advance                                                  |       | 4,011      |       | —            |       | (1,340            | )          | 505                |       |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Accrued partnership management fees not  recognized for tax purposes                                      |       | (2,526,882 | )          | (723,869          | )          | 325,551           |       | (1,397,441         | )          |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Other                                                                                                     |       | 807,831    |       | (189,343          | )          | 554,034           |       | 16,548             |       |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Operating limited partnership loss not  allowed for financial reporting under equity method of accounting |       | (6,947,562 | )          | (136,309          | )          | (1,642,836        | )          | (766,987           | )          |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Impairment loss in investment in operating  limited partnership                                           |       | 332,494    |       | —            |       | —            |       | 17,736             |       |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Excess of tax depreciation over book  depreciation on operating limited partnership assets                |       | (1,580,928 | )          | (37,143           | )          | (294,096          | )          | (160,449           | )          |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Difference due to fiscal year for book  purposes and calendar year for tax purposes                       |       | 12,883,237 |       | 3,150,098         |       | 347,000           |       | 2,710,501          |       |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Income (loss) for tax return purposes,  December 31, 2006                                                 |       | $          | 3,221,461  |              | $          | 2,368,329         |       | $                  | (1,095,014 | ) | $ | 594,724 |   |

 

F-63

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TOINCOME TAX RETURN (Continued)

 

For income tax purposes, the partnership reports using a December 31year-end. The partnership’s net income (loss) for financial reporting and taxreturn purposes for the year ended March 31, 2007 is reconciled as follows:

 
| ** **                                                                                                | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
| Net income (loss) for financial reporting  purposes, March 31, 2007                                       |       | $                  | (93,536    | )                  | $          | 685,643            |       | $ | (438,726 | ) |
|                                                                                                      |       |               |       |               |       |               |       |
| Operating limited partnership rents  received in advance                                                  |       | (323               | )          | —             |       | 5,169              |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Accrued partnership management fees not  recognized for tax purposes                                      |       | (457,733           | )          | (517,190           | )          | 243,800            |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Other                                                                                                     |       | 416,804            |       | (481,152           | )          | 490,940            |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Operating limited partnership loss not  allowed for financial reporting under equity method of accounting |       | (1,085,083         | )          | (853,035           | )          | (2,463,312         | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Impairment loss in investment in operating  limited partnership                                           |       | 301,946            |       | 12,812             |       | —             |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Excess of tax depreciation over book  depreciation on operating limited partnership assets                |       | (279,121           | )          | (241,397           | )          | (568,722           | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Difference due to fiscal year for book  purposes and calendar year for tax purposes                       |       | 3,250,347          |       | 3,142,854          |       | 282,437            |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Income (loss) for tax return purposes,  December 31, 2006                                                 |       | $                  | 2,053,301  |               | $          | 1,748,535          |       | $ | (2,448,414 | ) |

 

F-64

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TOINCOME TAX RETURN (Continued)

 

The differences between the investments in operating limited partnershipsfor tax purposes and financial statements purposes at March 31, 2008 are asfollows: 

 
| ** **                                                                    | ** ** | **Total**  | ** **  | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** **  |
|-------------------------------------------------------------------------------|------------|------------|-------------|-------------------|------------|-------------------|------------|--------------------|-------------|
|                                                                          |       |       |        |              |       |              |       |               |        |
| Investments in operating limited  partnerships - tax return December 31, 2007 |       | $          | (50,388,097 | )                 | $          | (418,413          | )          | $                  | (13,719,707 | ) | $ | (5,490,545 | ) |
|                                                                          |       |       |        |              |       |              |       |               |        |
| Add back losses not recognized under the  equity method                       |       | 39,267,643 |        | 442,074           |       | 11,077,219        |       | 3,269,380          |        |
|                                                                          |       |       |        |              |       |              |       |               |        |
| Impairment loss in investments in operating  limited partnerships             |       | (5,963,069 | )           | —            |       | (369,919          | )          | (512,842           | )           |
|                                                                          |       |       |        |              |       |              |       |               |        |
| Less share of loss - three months ended  March 31, 2008                       |       | (1,536,040 | )           | —            |       | —            |       | —             |        |
|                                                                          |       |       |        |              |       |              |       |               |        |
| Other                                                                         |       | 20,629,630 |        | (23,661           | )          | 3,012,407         |       | 2,860,510          |        |
|                                                                          |       |       |        |              |       |              |       |               |        |
| Investments in operating limited  partnerships - as reported, March 31, 2008  |       | $          | 2,010,067   |              | $          | —            |       | $                  | —      |   | $ | 126,503 |   |

 

F-65

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TOINCOME TAX RETURN (Continued)

 

The differences between the investments in operating limitedpartnerships for tax purposes and financial statements purposes at March 31, 2008are as follows: 

 
| ** **                                                                    | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|-------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
|                                                                          |       |               |       |               |       |               |       |
| Investments in operating limited  partnerships - tax return December 31, 2007 |       | $                  | (5,293,129 | )                  | $          | (8,560,298         | )          | $ | (16,906,005 | ) |
|                                                                          |       |               |       |               |       |               |       |
| Add back losses not recognized under the  equity method                       |       | 4,446,780          |       | 6,375,451          |       | 13,656,739         |       |
|                                                                          |       |               |       |               |       |               |       |
| Impairment loss in investments in operating  limited partnerships             |       | (1,498,289         | )          | (1,024,070         | )          | (2,557,949         | )          |
|                                                                          |       |               |       |               |       |               |       |
| Less share of loss - three months ended  March 31, 2008                       |       | —             |       | (279,923           | )          | (1,256,117         | )          |
|                                                                          |       |               |       |               |       |               |       |
| Other                                                                         |       | 3,517,298          |       | 3,488,840          |       | 7,774,236          |       |
|                                                                          |       |               |       |               |       |               |       |
| Investments in operating limited  partnerships - as reported, March 31, 2008  |       | $                  | 1,172,660  |               | $          | —             |       | $ | 710,904 |   |

 

F-66

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TOINCOME TAX RETURN (Continued)

 

The differences between the investments in operating limitedpartnerships for tax purposes and financial statements purposes at March 31,2007 are as follows: 

 
| ** **                                                                    | ** ** | **Total**  | ** **  | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** **  |
|-------------------------------------------------------------------------------|------------|------------|-------------|-------------------|------------|-------------------|------------|--------------------|-------------|
|                                                                          |       |       |        |              |       |              |       |               |        |
| Investments in operating limited  partnerships - tax return December 31, 2006 |       | $          | (53,895,465 | )                 | $          | (1,713,373        | )          | $                  | (14,732,068 | ) | $ | (6,357,811 | ) |
|                                                                          |       |       |        |              |       |              |       |               |        |
| Add back losses not recognized under the  equity method                       |       | 45,224,475 |        | 1,257,774         |       | 12,041,879        |       | 5,608,777          |        |
|                                                                          |       |       |        |              |       |              |       |               |        |
| Impairment loss in investments in operating  limited partnerships             |       | (8,628,867 | )           | (86,382           | )          | (369,919          | )          | (534,606           | )           |
|                                                                          |       |       |        |              |       |              |       |               |        |
| Less share of loss - three months ended  March 31, 2007                       |       | (4,270,438 | )           | (66,154           | )          | (596,953          | )          | (729,386           | )           |
|                                                                          |       |       |        |              |       |              |       |               |        |
| Other                                                                         |       | 24,360,506 |        | 608,135           |       | 3,657,061         |       | 2,247,824          |        |
|                                                                          |       |       |        |              |       |              |       |               |        |
| Investments in operating limited  partnerships - as reported, March 31, 2007  |       | $          | 2,790,211   |              | $          | —            |       | $                  | —      |   | $ | 234,798 |   |

 

F-67

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE D - RECONCILIATION OF FINANCIALSTATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)

 

The differences between the investments in operating limited partnershipsfor tax purposes and financial statements purposes at March 31, 2007 are asfollows: 

 
| ** **                                                                    | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|-------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
|                                                                          |       |               |       |               |       |               |       |
| Investments in operating limited  partnerships - tax return December 31, 2006 |       | $                  | (5,024,337 | )                  | $          | (8,524,574         | )          | $ | (17,543,302 | ) |
|                                                                          |       |               |       |               |       |               |       |
| Add back losses not recognized under the  equity method                       |       | 6,609,039          |       | 6,252,903          |       | 13,454,103         |       |
|                                                                          |       |               |       |               |       |               |       |
| Impairment loss in investments in operating  limited partnerships             |       | (3,447,876         | )          | (1,352,077         | )          | (2,838,007         | )          |
|                                                                          |       |               |       |               |       |               |       |
| Less share of loss - three months ended  March 31, 2007                       |       | (721,702           | )          | (563,710           | )          | (1,592,533         | )          |
|                                                                          |       |               |       |               |       |               |       |
| Other                                                                         |       | 4,153,337          |       | 4,257,230          |       | 9,436,919          |       |
|                                                                          |       |               |       |               |       |               |       |
| Investments in operating limited  partnerships - as reported, March 31, 2007  |       | $                  | 1,568,461  |               | $          | 69,772             |       | $ | 917,180 |   |

 

F-68

----

 

Boston Capital Tax Credit Fund II Limited Partnership-

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2008 and 2007

 

NOTE E - CASH EQUIVALENTS

 

On March 31,2007, Boston Capital Tax Credit Fund II Limited Partnership purchased$1,850,000 of corporate debt securities under agreements to resell onApril 1, 2007, respectively. Interest is earned at rates ranging from .40%to 3% per annum.

 

NOTE F -SUBSEQUENT EVENTS

 

Subsequent to March 31, 2008, the Partnership has entered intoagreements to sell interests in twenty-five Operating Partnerships. Theestimated sales price and other terms for the disposition of the OperatingPartnerships have been determined. The estimated proceeds to be received forthese twenty-five Operating Partnerships is $2,648,006. The estimated gain onsales of the Operating Partnerships is $2,378,496 and is expected to berecognized in the second, third, or fourth quarter of 2008.

 

NOTE G -CONCENTRATION OF CREDIT RISK

 

The Fund maintains its cash and cash equivalent balances in severalaccounts in various financial institutions. The balances are generally insuredby the Federal Deposit Insurance Corporation (FDIC) or the Securities InvestorProtection Corporation (SIPC) up to specified limits by each institution. Attimes, the balances may exceed these insurance limits; however, the Fund hasnot experienced any losses with respect to it balances in excess of FDIC orSIPC insurance. Management believes that no significant concentration of creditrisk with respect to these cash and cash equivalent balances exists as ofMarch 31, 2008.

 

F-69

----