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which was located in Bermuda, and all ground equipment of which 90 percent of the total in value was located in New York. Spare parts and ground equipment were not actually counted but were evaluated on the basis of Colonial's inventory. In making its appraisal, Eastern relied on the experience of air carriers in selling DC-3 and DC-4 equipment, the current market for flight equipment, the current market for flight equipment, spare parts and supplies, and the hours remaining before overhaul for flight equipment.

The following is a detail of Eastern's appraisal of Colonial's fixed assets as of December 1954:

Flight Equipment

8 Douglas DC-3 Aircraft $ 640,000
5 Douglas DC-4 Aircraft 2,425,000
15 Wright G-202 Engines with Mounts 112,000
13 P&S - R-2000-ii M-2 Engines with Mounts 305,000
Propellers and hubs, DC-3 and DC-4 8,750
DC-3 Spare Parts 200,000
DC-4 Spare Parts 325,000
Interchangeable Spare Parts 120,000
Non-Inventory Items 40,000
Surplus and Obsolete Parts 15,000

Total Flight Equipment $4,191,250

Ground Equipment

Ground Equipment — including all
passenger service, station communication,
hanger shop and ramp, small tools, motorized
equipment, furniture, fixtures, office machines, office supplies, other ground equipment and improvements to leased property $ 503,500

Construction Work in Progress

Work in Progress - Cost $7,339

Total Fair Market Value of Colonial's Fixed Assets $4,702,089