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                         SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C. 20549
          
          
          
                                    FORM 10-Q
          
          
                    Quarterly Report Under Section 13 or 15(d)
                      of The Securities Exchange Act of 1934
          
          
          
          For the Quarter ended             Commission File Number
              June 30, 1998                        33-19038
          
          
          
                    PERSHING LEASE INCOME LIMITED PARTNERSHIP
              (Exact name of registrant as specified in its charter)
          
          
          
                                     MISSOURI
          (State or other jurisdiction of incorporation or organization)
          
          
          
                                    43-1463913
                       (I.R.S. Employer Identification No.)
          
          
          
             6300 Lamar, Shawnee Mission, Kansas 66202 (913) 236-2000
        (Address, including zip code, and telephone number, including area
                code, of registrant's principal executive offices)
          
          
     Indicate by check mark whether the registrant (1) has filed all reports
     required  to be filed by Section 13 or 15(d) of the Securities Exchange
     Act of 1934 during the preceding 12 months (or such shorter period that
     the  registrant  was required to file such reports),  and (2) has  been
     subject to such filing requirements for the past 90 days. Yes X  No   
     
     
     
     
     
     
     
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                    PERSHING LEASE INCOME LIMITED PARTNERSHIP
                         (A Missouri Limited Partnership)
          
                                Table of Contents
          
          
          Part I - Financial Information
     
          Financial Statements:                                   Page
          
            Balance Sheet - June 30, 1998 and 
            December 31, 1997                                       3
          
            Statements of Income for the Three Months and Six 
            Months Ended June 30, 1998 and 1997                     4
          
            Statement of Cash Flows for the Six Months
            Ended June 30, 1998 and 1997                            5
          
            Notes to Financial Statements                         6-8
          
          Management's Discussion and Analysis of 
            Financial Condition and Results of Operations        9-10
          
          
          PART II - OTHER INFORMATION
          
          Item 1.  Legal Proceedings.                              11
          
          Item 2.  Changes in Securities.                          11
          
          Item 3.  Default Upon Senior Securities.                 11
          
          Item 4.  Submission of Matters to a Vote of Security 
                   Holders.                                        11
          
          Item 5.  Other Information.                              11
          
          Item 6.  Exhibits and Reports on Form 8-K.
                   (a) Exhibits                                    11
                   (b) Reports on Form 8-K                         11
          
          
          
          
          
          
     
     
     
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                     Pershing Lease Income Limited Partnership
                          (A Missouri Limited Partnership)
       
                                   Balance Sheets
       
                                                     June 30,    December 31,
                                                       1998           1997   
       Assets                                       (Unaudited)  
       Investment property:                                      
         Cost                                      $   801,339   $    801,339
         Less accumulated depreciation                 799,054        791,882
           Investment property, net                      2,285          9,457
       Cash and cash equivalents                       234,162        137,247
       Rents and other receivables                       6,741          9,227
       Prepaid insurance                                   683          1,270
                                                                 
            Total assets                           $   243,871   $    157,201
                                                    ==========    ===========
                                                                 
                                                                 
       Liabilities and Partners' Equity                          
       Liabilities:                                              
         Due to affiliates                               4,320   $      4,562
         Accounts Payable                                1,850              -
                                                                 
             Total liabilities                           6,170          4,562
                                                                 
       Partners' Equity (Deficit):                               
         General Partner:                                        
           Capital contribution                          1,000          1,000
           Cumulative net income                     1,221,860      1,104,430
           Cumulative cash distributions            (1,316,610)    (1,316,610)
                                                       (93,750)      (211,180)
         Limited Partners (62,840 units):                        
           Capital contributions, net of                         
             offering costs                         27,738,501     27,738,501
           Cumulative net income                     5,555,266      5,587,634
           Cumulative cash distributions           (32,962,316)   (32,962,316)
                                                       331,451        363,819
             Total partners' equity                    237,701        152,639
             Total liabilities and partners'                     
               equity                              $   243,871   $    157,201
                                                    ==========    ===========
                                                                 
                                                                 
                                                                 
                                                                 
                                                                 
                                                                 
                                                                 
               See accompanying notes to the financial statements.
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                    PERSHING LEASE INCOME LIMITED PARTNERSHIP
                         (A Missouri Limited Partnership)
     
                               Statements of Income
                                   (Unaudited)
     
                               Six Months Ended        Three Months Ended
                                    June 30                 June 30       
                              1998         1997         1998        1997  
     Revenue:
       Rental income       $  116,805  $  214,645    $ 116,805   $  84,787 
       Interest income            625      10,497          322       4,285 
       Net gain on                                              
        sale of equipment           -     155,900            -     108,400
          Total revenue       117,430     381,042      117,127     197,472
                                                                
     Expenses:                                                  
       Depreciation             7,172      57,216        3,586      28,608 
       General and                                              
         administrative        25,196      56,824       12,198      25,863
          Total expenses       32,368     114,040       15,784      54,471
                                                                
                                                                
     Net income            $   85,062  $  267,002    $ 101,343   $ 143,001
                            =========   =========     ========    ========
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                 See accompanying notes to financial statements.
     
     
     
     
     
     
     
     
     
     
     
     
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                    PERSHING LEASE INCOME LIMITED PARTNERSHIP
                         (A Missouri Limited Partnership)
     
                             Statement of Cash Flows
                                   (Unaudited)
                                                      For the Six Months
                                                        Ended June 30,     
                                                      1998           1997  
                                                                
     Cash flows from operating activities:        $    85,062   $   267,002 
       Net income                                               
                                                                
       Adjustments to reconcile net income                      
         to net cash provided by                                
         (used in) operating activities:                        
           Depreciation and amortization                7,172        57,216
           Net gain on sale of investment                       
             property                                       -      (155,900)
                                                                
       Changes in assets and liabilities:                       
         Receivables                                    2,486        (2,590)
         Prepaid insurance                                587         1,009 
         Due to affiliates                               (242)       (4,608)
         Accounts payable                               1,850           332 
         Unearned rental revenue                            -        11,030
       Net cash provided by operating                           
         activities                                    96,915       173,491 
                                                                
     Cash flows from investing activities:                      
       Disposition of investment property                   -       155,900 
                                                                
     Cash flows from financing activities:                      
       Cash distributions to Partners                       -      (524,306)
                                                                
     Net increase (decrease) in cash and                        
       cash equivalents                                96,915      (194,915)
                                                                
     Cash and cash equivalents at beginning                     
         of period                                    137,247       639,226
                                                                
     Cash and cash equivalents at end of                        
         period                                   $   234,162   $   444,311
                                                   ==========    ==========   
                                                                
                                                                
                                                                
     
                 See accompanying notes to financial statements.
     
     
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                    PERSHING LEASE INCOME LIMITED PARTNERSHIP
                         (A Missouri Limited Partnership)
          
                          Notes to Financial Statements
                                   (Unaudited)
          
          In the opinion of the General Partner,  the accompanying unaudited
     financial  statements  contain  all adjustments  necessary  to  present
     fairly the financial position, results of operations and cash flows.
          
     (1) Summary of Significant Accounting Policies
          
          Organization
          
          Pershing  Lease Income Limited Partnership (the "Partnership") was
     organized under the Missouri Revised Uniform Limited Partnership Act on 
     November  30,  1987.  The Partnership was formed to invest primarily in
     equipment  to  be leased to third parties.   The Amended  Agreement  of
     Limited  Partnership  authorized the issuance of up to  60,000  Limited
     Partnership  units  at  a  price  of $500 per unit  and  up  to  20,000
     additional units.   The Partnership had an initial closing and thirteen
     subsequent  closings.   The closings occurred on May 3,  1988,  June 3,
     1988, July 8, 1988, August 5, 1988, September 8, 1988, October 7, 1988,
     November 7,  1988, December 7, 1988, January 9, 1989, February 7, 1989,
     March 7,  1989,  April 7,  1989, May 5,  1989,  and June 14,  1989 with
     10,732,  6,712, 3,984, 4,268, 5,011, 3,822, 2,562, 2,701, 4,001, 3,256,
     3,604, 4,014, 3,592, and 4,581 units, respectively.
     
          Pursuant  to  the  terms  of  the  Amended  Agreement  of  Limited   
     Partnership, distributable cash from operations and profits for federal
     income  tax  purposes from normal operations,  as defined,  are  to  be
     allocated  95%  to the Limited Partners and 5% to the  General  Partner
     until  payout has occurred,  and 85% to the Limited Partners and 15% to
     the General Partner thereafter.   Special allocations of taxable income
     may  be required to reduce or eliminate the deficit account balances of 
     Partners   according  to  Treasury  Regulations  and  the   partnership
     agreement.  "Payout"  means  the time when the aggregate amount of  all
     distributions  to  the  Limited  Partners of  distributable  cash  from
     operations  and of distributable cash from sales or refinancing  equals
     the aggregate amount of the Limited Partners' original invested capital
     plus  a  cumulative  8%  annual return on  their  aggregate  unreturned
     invested  capital  (calculated  from the beginning of  the  first  full
     fiscal  quarter  following  each  Limited Partner's  admission  to  the
     Partnership).   Losses  for federal income tax purposes from the normal
     operations  of  the  Partnership will be allocated 99% to  the  Limited
     Partners  and  1% to the General Partner.  In  addition,  special  cost
     recovery  allocations may be required to reflect the differing  initial
     capital  contributions of the General Partner and the Limited Partners. 
     The Partnership's books and records are in accordance with the terms of
     the Amended Agreement of Limited Partnership.
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                    Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
     
                      Notes to Financial Statements, Continued
                                   (Unaudited)
                                         
          The  General Partner,  Waddell & Reed Leasing,  Inc.,  contributed
     $1,000  for its General Partnership interest.   The General Partner  is
     not  required  to  make any other capital  contributions  except  under
     certain limited circumstances upon termination of the Partnership.
     
     
         Basis of Presentation
     
         The  Partnership financial statements are presented on the  accrual
     basis of accounting.
     
         Cash and Cash Equivalents
     
         Cash  and  cash equivalents in the accompanying statements of  cash
     flows  include  cash on hand and short-term investments  with  original
     maturities of less than ninety days.
     
         Investment Property
     
         At June 30,  1998 and December 31, 1997, the Partnership owned min-
     ing equipment,  with a depreciable cost basis of $801,339.   The depre-
     ciable  cost basis at June 30,  1998 and December  31,  1997,  includes
     acquisition  fees of $36,337,  which were paid to the General  Partner.   
     Depreciation is provided using an accelerated method.  The equipment is
     being marketed for sale.
     
     
         Income Taxes
     
         The Partnership is a pass-through entity and, accordingly, taxes on
     income,  if  any,  are  the responsibility of the individual  partners.
     Partners'  equity at June 30,  1998 as reported herein has been reduced
     by sales commissions and other costs of the offering, which will not be
     deductible  by the partners until the Partnership is liquidated or  the
     partners' units are otherwise disposed of.
     
     
     
     
     
     
     
     
     
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                    Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
     
                     Notes to Financial Statements, Continued
                                   (Unaudited)
     
     
     (2) Related Party Transactions
     
          Fees,  commissions  and  other  expenses paid or  payable  by  the    
     Partnership to the General Partner or affiliates of the General Partner
     for the quarter ending June 30, 1998 follow:
     
         Reimbursable operating expenses                   $11,159
     
     
          The following costs were due to affiliates  as of June 30, 1998: 
     
         Reimbursable operating expenses                   $ 4,320
     
     
     (3) Subsequent Event
     
          Proceeds  from  the sale of the last piece of equipment  that  the
     Partnership  owned in the amount of $127,500 were received on July  31,
     1998.
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
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                    Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
     
     
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                          CONDITION AND  RESULTS OF OPERATIONS.
     
     
     Partnership Operations
     
          Rental  income  of  the second quarter of 1998  was  $116,805,  an
     increase  of $32,018 over the same period in 1997.   The rental  income
     represents past due rents that were received as the result of the Part-
     nership's  claim  against the assets of a lessee that filed  for  bank-
     ruptcy  in  1993.   Rental income for the first six months of 1998  was
     $116,805,  a  decrease  of $97,840 from 1997 due to lease  expirations. 
     The  Partnership did not sell any equipment during the first six months
     of   1998.   As a result,  the net gain from sales of equipment for the
     first  three  months and the first six months of 1998 was $108,400  and
     $155,900,  respectively, lower than the amounts for the same periods in
     1997.
     
          The use of accelerated depreciation methods combined with the sale
     of  some  of  the equipment resulted in a decline  in  depreciation  of
     $25,022 from the second quarter of 1998 as compared to 1997.  Deprecia-
     tion for the first six months of 1998 was $7,172, a decrease of $50,044
     from  1997.   General and administrative expenses for the quarter  were
     $12,198,  a  decrease of $13,665 compared to the second quarter of 1997
     due primarily to lower management fees and accounting fees. General and
     administrative  expenses for the first six months of 1998 were $25,196,
     a  decrease of $31,628 from 1997.   Most of the decrease is related  to
     lower management fees and accounting fees.
     
     Proceeds  from the sale of the Partnership's last piece of equipment in
     the amount of $127,500 were received on July 31,  1998. The Partnership
     plans  to  make its final distribution of cash and cease operations  by
     December 31, 1998.
     
         
     Liquidity and Capital Resources
     
          Management  believes  the Partnership has sufficient cash to  fund
     operations until it ceases operations and provide for a final cash dis-
     tribution to the partners.
     
     
     
     
     
     
     <PAGE>
     
                    Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
     
                 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                        CONDITION AND RESULTS OF OPERATIONS.
     
     
     Cash and Distributable Cash from Operations and Sales
         Shown  below is the calculation of Cash and Distributable Cash from
     Operations and Sales for the quarter ended June 30,  1998 as defined by
     Section 17 of the Amended Agreement of Limited Partnership:
                                         
      
         Rental income                                   $  116,805
         Interest income                                        322
         Cash from sales                                          -
           Total cash inflow                                117,127
                                                         
           Operating expenses                               (12,198)
           Cash from operations and sales                   104,929
                                                         
         Reserve for distributions and operations           104,929
         Partnership management fee                               -
                                                         
           Distributable cash from operations and sales  $        -
                                                          =========
                                                         
      
      There were no distributions made to the Limited Partners of record on
      March 31, 1998.
                                         
     
     Equipment Summary
                                                  Acquisition
     Equipment Description                           Cost    
     Construction/Mining                           $801,339
     
     
     
     
     
     
     
     
     
     
     
     
     
     
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                    Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
     
     
     PART II - OTHER INFORMATION
     
     Item 1.  Legal Proceedings.
     
              Not applicable.
     
     Item 2.  Changes in Securities.
     
              Not applicable.
     
     Item 3.  Default Upon Senior Securities.
     
              Not applicable.
     
     Item 4.  Submission of Matters to a Vote of Security Holders.
     
              Not applicable.
     
     Item 5.  Other Information.
     
              The  Partnership disposed of the last of its equipment on July
              31, 1998.  This equipment consisted of mining equipment for      
              which the Partnership received $127,500 from an unrelated     
              third party.   The Partnership plans to make its final distri- 
              bution of cash and cease operations by December 31, 1998.
     
     Item 6.  Exhibits and Reports on Form 8-K.
     
              (a) Exhibits  - There are no exhibits.
                                       
              (b) Form 8-K - There have been no reports on Form
                  8-K.
     
     
     
     
     
     
     
     
     
     
     
     
     
     
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                     Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
     
                                    SIGNATURES
     
     
     Pursuant  to  the requirements of the Securities Exchange Act of  1934,
     the  registrant has duly caused this report to be signed on its  behalf
     by the undersigned, thereunto duly authorized.
     
     
                    PERSHING LEASE INCOME LIMITED PARTNERSHIP
                                   (Registrant)
     
     
     
                              By:                                   
                                  Michael D. Strohm, Executive Vice
                                  President and Assistant Treasurer
                                  of the General Partner
                                                                            
                              Date:   August 13, 1998               
     
     
                              By:                                    
                                  Robert L. Hechler, as President and
                                  Treasurer of the General Partner
                                  (Principal Accounting and Financial
                                  Officer)
                         
                              Date:  August 13, 1998