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follows: 
                Indicated Income Value - Fee Simple                 $166,160
                LESS: Indicated Income Value - Roof Defects ,       (139,393)
                Price Discount Attributable to Defects              $ 26,767
                ROUNDED                                             $ 27,000
      E. Valuation of the Bankruptcy Leasehold Encixnbrances 
          The   subject property was leased to Hemker Oil Company ccmmencing
  May 
          16,   1985, and expiring May 15, 1990. The tenant has been in 
  Chapter 
          11   Bankruptcy  since  April 24, 1987, and is    in  arrears 
in  rent. 
          Though   the rental is an administrative expense and is payable
  before 
          previous   unsecured creditors are paid, the probability of   collecting
          even   a  portion of the rent is low.   The appraiser has  been
 advised 
          that   legal  proceedings to evict the tenant are   likely.   Given
 the 
          circumstances,   an investor would not expect the property   to
 achieve 
          full   potential  until these issues are resolved and the   property
  is 
          re-rented. 
          It   is  expected that no more than 25 percent of the rent   due
 during 
          the  first six months of 1987 would be collected. Given     the
 current 
          supply   of available space in the La Crosse area, a vacancy period
  of 
          six months following eviction is expected to be normal.    To 
determine 
          the impact on value of the current circumstances, the discounted
cash 
          flow  model   used in the Income Approach was modified to   reflect
 the 
          anticipated scenario.   The value of the property as encumbered
by   the 
          lease   is $108,527, or $109,000 rounded, as reflected in   Exhibit
 14. 
          The   difference  between  the value based on   normal  rents 
with  the 
          associated   roof  problems and the value based on   the  current
 lease 
          circumstances   indicates  the decrease in value due to   the 
leasehold 
          encunbrance.   It is determined as follows: 
                Indicated Income Value - Normal Rents, reserves         $139,393
                LESS:  Indicated Income Value - Lease encumbrance       (108,528)
                Leasehold Bankruptcy Encumbrance                        $
30,865 
                ROUNDED                                                 $
31,000 
IX.   RECONCILIATION OF VALUE 
      The  Income  Approach, which is the primary indicator of    value 
for  this 
      type  of   property,  suggested a value of $166,160.    Accordingly,
 it  is 
      weighted  most   heavily  in  the   determination   of  value.   The
 Market 
      Comparison  Approach   indicated a value of $171,000 and is weighted
   less 
      heavily  than   the  Income   Approach   due    to   the  diversity
 of  the 
      comparables.    The  Cost  Approach  suggested   a  value  for  the
 subject 
      property of $171,000.   However, this approach serves primarily as
a   check 
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