Year of RIC status C Employer identification number election

A Name of fund

Please

type or

print

Number, street, and room or suite no. (If a P.O. box, see page 5 of instructions.) D Total assets (See page 5 of

instructions.) Date fund was established

(See page 5 of instructions.)

B

City or town, state, and ZIP code

$

(1) Final return (2) Change of address (3) Amended return

F Check if the fund is a personal holding company (attach Sch. PH) or if the fund is not in compliance with Regs. sec. 1.852-6 for this tax year ©

Part I—Investment Company Taxable Income (See page 6 of instructions.)

1 Dividends 1

2 Interest 2

3 Net foreign currency gain or (loss) from section 988 transactions (attach schedule) 3

4 Payments with respect to securities loans 4

Excess of net short-term capital gain over net long-term capital loss from Schedule D (Form

1120), line 11 (attach Schedule D (Form 1120))

5

Income

5

6 Net gain or (loss) from Form 4797, Part II, line 20 (attach Form 4797) 6

7 Other income (see page 6 of instructions—attach schedule) 7

8 Total income. Add lines 1 through 7 © 8

9 Compensation of officers (Schedule E, line 2) 9

10 10 Salaries and wages (less employment credits)

11 Rents 11

12 12 Taxes and licenses

13 Interest 13

14 Depreciation (attach Form 4562) 14

15 15 Advertising

16 Registration fees 16

17 Insurance 17

18 Accounting and legal services 18

Deductions (See page 6 of instructions.)

19 Management and investment advisory fees 19

20 Transfer agency, shareholder servicing, and custodian fees and expenses 20

21 Reports to shareholders 21

22 Other deductions (attach schedule) 22

23 Total deductions. Add lines 9 through 22 © 23

24 Taxable income before deduction for dividends paid. Subtract line 23 from line 8 24

25 Less: Deduction for dividends paid (Schedule A, line 6a) 25

26 Investment company taxable income. Subtract line 25 from line 24 26

27 Total tax (Schedule J, line 9) 27

28 Payments: a 1995 overpayment credited to 1996 28a

b 1996 estimated tax payments 28b

c Less 1996 refund applied for on Form 4466 28c ( ) d Bal © 28d

e Tax deposited with Form 7004 28e

Credit from other regulated investment companies (attach Form 2439) 28f f

g Credit for Federal tax paid on fuels (attach Form 4136) 28g 28h

29 Estimated tax penalty (see page 8 of instructions). Check if Form 2220 is attached © 29

Tax and Payments

30 Tax due. If line 28h is smaller than the total of lines 27 and 29, enter amount owed 30

31 Overpayment. If line 28h is larger than the total of lines 27 and 29, enter amount overpaid 31

32 32

U.S. Income Tax Return for OMB No. 1545-1010

Regulated Investment Companies

Form 1120-RIC

© Instructions are separate. See page 1 for Paperwork Reduction Act Notice. Department of the Treasury

Internal Revenue Service

Enter amount of line 31 you want: Credited to 1997 estimated tax ©

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge

Please and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Sign

Here Signature of officer Date Title

Preparer’s Date Preparer’s social security no.

signature

Check if self- Paid employed ©

Preparer’s

Use Only

Firm’s name (or yours

if self-employed)

and address

EIN ©

ZIP code ©

For calendar year 1996 or tax year beginning , 1996, and ending , 19

©

Cat. No. 64140B

Refunded ©

©

©

©

Form 1120-RIC (1996)

96

E Check applicable boxes:
Form 1120-RIC (1996) Page 2

Part II—Tax on Undistributed Net Capital Gain Not Designated Under Section 852(b)(3)(D)

1 Net capital gain from Schedule D (Form 1120), line 12 (attach Schedule D (Form 1120)) 1

2 Less: Capital gain dividends from Schedule A, line 6b 2

3 Amount subject to tax. Subtract line 2 from line 1 3

4 Capital gains tax. Multiply line 3 by 35% (.35). Enter tax here and on line 3b, Schedule J 4

Deduction for Dividends Paid (Do not include exempt-interest dividends or capital gain dividends

reported on Form 2438, line 9b.) (See page 8 of instructions.)

Dividends paid (other than dividends paid after the end of the tax year).

Do not include dividends considered paid in the preceding tax year

under section 852(b)(7) or 855(a), or deficiency dividends as defined in

section 860

1

1

Dividends paid in the 12-month period following the close of the tax year that

the fund elects to treat as paid during the tax year under section 855(a)

2

2

Dividends declared in October, November, or December and deemed

paid on December 31 under section 852(b)(7)

3

3

4 Consent dividends (section 565) (attach Forms 972 and 973) 4

5 Foreign tax paid deduction (section 853(b)(1)(B)), if applicable 5

Information Required With Respect to Income From Tax-Exempt Obligations

Did the fund qualify under section 852(b)(5) to pay exempt-interest dividends for 1996? © Yes No

If “Yes,” complete lines 2 through 5. If “No,” go to Schedule E. (See page 8 of instructions.)

Amount of interest excludible from gross income under section 103(a) 2

1

Amounts disallowed as deductions under sections 265 and 171(a)(2) 3

2

Net income from tax-exempt obligations. Subtract line 3 from line 2 4

3

Amount of line 4 designated as exempt-interest dividends

4

5

Compensation of Officers (See instructions for line 9, page 1.)

Complete Schedule E only if total receipts are $500,000 or more.

(d) Percent of fund

stock owned

(c) Percent of time

devoted to business

(e) Amount of

compensation

(b) Social security

number (a) Name of officer

% %

% %

2 Total compensation of officers. Enter here and on line 9, page 1 2

Tax Computation (See page 9 of instructions.)

1 Check if the fund is a member of a controlled group (see sections 1561 and 1563) ©

If the box on line 1 is checked, enter the fund’s share of the $50,000, $25,000, and $9,925,000

taxable income brackets (in that order):

2a

(1) $ (2) $

b Enter the fund’s share of:

3a Tax on investment company taxable income 3a

b Capital gains tax. Enter amount from Part II, line 4 3b

c Income tax. Add lines 3a and 3b 3c

4a Foreign tax credit (attach Form 1118) 4a

General business credit. Enter here and check which forms are attached:

b

8586 8826

3800 3468

8845 4c

Credit for prior year minimum tax (attach Form 8827) 4d

c

4e

d

Total credits. Add lines 4a through 4d

5 Subtract line 4e from line 3c 5

6 Personal holding company tax (attach Schedule PH (Form 1120)) 6

7 Recapture taxes. Check if from: Form 4255 Form 8611 7

8 Alternative minimum tax (attach Form 4626) 8

9 Total tax. Add lines 5 through 8. Enter here and on line 27, page 1 9

Schedule A

Schedule B

Schedule J

Schedule E

1

5

Deduction for dividends paid:

Ordinary dividends. Add lines 1 through 5 of column (a). Enter here and on page 1, line 25

Capital gain dividends. Add lines 1 through 4 of column (b). Enter here

and on Part II, line 2, above

(a) Ordinary dividends (b) Capital gain dividends

6

6a

6b

a

b

8835

Nonconventional source fuel credit QEV credit (attach Form 8834) 4b

e

(3) $

(2) Additional 3% tax (not more than $100,000) $

$

Check:

6478

8847

8844

(1) Additional 5% tax (not more than $11,750)

Important: Members of a controlled group, see instructions on page 9.

8830

8846

5884 6765

8820
Form 1120-RIC (1996) Page 3

Other Information (See pages 10 and 11 of instructions.) Yes No

2 Did the fund at the end of the tax year own, directly or indirectly, 50% or more of the voting stock of a domestic corporation?

(1)

Was the fund a U.S. shareholder of any controlled foreign corporation? (See sections 951 and 957.)

If “Yes,” attach Form 5471 for each such corporation.

At any time during the 1996 calendar year, did the fund have an interest in or a signature or other authority over a financial

account in a foreign country (such as a bank account, securities account, or other financial account)?

If “Yes,” the fund may have to file Form TD F 90-22.1.

If “Yes,” enter the name of the foreign country ©

During the tax year, did the fund receive a distribution from, or was it the grantor of, or transferor to, a foreign trust?

If “Yes,” see page 11 of the instructions for other forms the fund may have to file.

During this tax year, did the fund pay dividends (other than stock dividends and distributions in exchange for stock) in

excess of the fund’s current and accumulated earnings and profits? (See sections 301 and 316.)

If “Yes,” file Form 5452.

Check method of accounting:

Cash

Accrual

Other (specify) ©

Check this box if the fund issued publicly offered debt instruments with original issue discount ©

If checked, the fund may have to file Form 8281.

Enter the amount of tax-exempt interest received or accrued during the tax year. ©

If this return is being filed for a series fund (as defined in section 851(h)(2)), complete a and b:

Enter the name of the regulated investment company in which the fund is a series ©

Enter the date the regulated investment company was incorporated or organized ©

Section 853 election.—Check this box if the fund meets the requirements of section 853(a) and elects to pass through

the deduction or credit for foreign taxes it paid to its shareholders. See the instructions on page 11 for additional details

and requirements ©

Regulations section 1.852-11 election.—Check this box if, for purposes of computing taxable income, the fund elects

under Regulations section 1.852-11(f)(1) to defer all or part of its post-October capital loss or post-October currency

loss for this tax year ©

If the election is made, enter the amounts deferred:

Post-October capital loss ©

Post-October currency loss ©

Schedule K

3

4

a

b

c

5

6

7

8

9

10

11

12

13

1

Did one foreign person at any time during the tax year own, directly or indirectly, at least 25% of:

The total voting power of all classes of stock of the fund entitled to vote, or

The total value of all classes of stock of the fund?

Enter number of Forms 5471 attached ©

a

b

a

b

Enter percentage owned ©

$

(2)

(3)

Enter owner’s country ©

The fund may have to file Form 5472. Enter number of Forms 5472 attached ©

a

b

Is the RIC a subsidiary in a parent-subsidiary controlled group?

If “Yes,” enter the employer identification number and the name of the parent corporation ©

Did any individual, partnership, corporation, estate or trust at the end of the tax year own, directly or indirectly, 50% or

more of the RIC’s voting stock? (For rules of attribution, see section 267(c).)

If “Yes,” attach a schedule showing name and identification number. (Do not include any information already entered in 3

above.) Enter percentage owned ©

14

If “Yes,” attach a schedule showing (a) name and identification number, (b) percentage owned, and (c) taxable income or

(loss) before a net operating loss (NOL) and special deductions of such corporation for the tax year ending with or within

your tax year. 

If “Yes,”:

(For rules of attribution, see section 267(c).)
Form 1120-RIC (1996) Page 4

Beginning of tax year End of tax year

(a) (b) (c) (d) Assets

( ) ( ) b Less allowance for bad debts

3 U.S. government obligations

4 Tax-exempt securities (see page 11 of instructions)

5 Other current assets (attach schedule)

6 Loans to stockholders

7 Mortgage and real estate loans

8 Other investments (attach schedule)

9a Buildings and other fixed depreciable assets

( ) ( ) b Less accumulated depreciation

10 Land (net of any amortization)

11a Intangible assets (amortizable only)

b Less accumulated amortization ( ) ( )

12 Other assets (attach schedule)

13 Total assets

Liabilities and Stockholders’ Equity

14 Accounts payable

15 Mortgages, notes, bonds payable in less than 1 year

16 Other current liabilities (attach schedule)

17 Loans from stockholders

18 Mortgages, notes, bonds payable in 1 year or more

19 Other liabilities (attach schedule)

20 Capital stock

21 Paid-in or capital surplus

22 Retained earnings—Appropriated (attach schedule)

23 Retained earnings—Unappropriated

24 Less cost of treasury stock ( ) ( )

25 Total liabilities and stockholders’ equity

Reconciliation of Income (Loss) per Books With Income per Return (See page 11 of instructions.)

Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 23, Schedule L)

Schedule M-1

Schedule L

Income recorded on books this year

not included on this return (itemize):

7

Tax-exempt interest

Deductions on this return not charged

against book income this year (itemize):

8

Expenses recorded on books this year not

deducted on this return (itemize):

5

a Depreciation 

b

a Depreciation 

Expenses allocable to tax-exempt interest

income $

b

d Travel and entertainment $

9 Net capital gain from Form 2438, line 9a

10 If the fund did not file Form 2438,

enter the net capital gain from

Schedule D (Form 1120), line 12.

Otherwise, enter -0-

6 Add lines 1 through 5

1 Balance at beginning of year 5 Distributions: a Cash

2 Net income (loss) per books b Stock

3 Other increases (itemize): c Property

6 Other decreases (itemize):

7 Add lines 5 and 6

4 8 Add lines 1, 2, and 3 Balance at end of year (line 4 less line 7)

1 Net income (loss) per books

2 Federal income tax

3 Excess of capital losses over capital gains

Income subject to tax not recorded on

books this year (itemize):

4

c Section 4982 tax

11 Add lines 7 through 10

12 Investment company taxable income

(line 26, page 1)—line 6 less line 11

1 Cash 

2a Trade notes and accounts receivable

Deduction for dividends

paid (line 25, page 1)

Note: The fund is not required to complete Schedules M-1 and M-2 if the total assets on line 13, column (d), of Schedule L are less than $25,000.

$

$

$ 

$ 

$ 

Balance Sheets per Books