PruTech Research and Development Partnership
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December 1996
To Our Limited Partners:
As you know, the Limited Partners of PruTech Research and Development
Partnership previously approved a Plan of Dissolution and Liquidation (the
"Plan"), effective as of June 10, 1996, providing for the sale of the
Partnership's assets, the liquidation of its liabilities and the distribution
of the remaining funds in accordance with the Partnership Agreement.
The General Partner, as Liquidating Agent under the Plan, completed the sale
of the Partnership's remaining assets in December 1996. On December 31, 1996,
the Partnership made a final liquidating distribution to the Limited Partners
ranging from $11.94 to $48.81 per unit based upon each Limited Partner's capital
account balance at the time of liquidation. With this final liquidating
distribution, the Partnership has made cash distributions to Limited Partners
ranging from $761.22 to $798.09 per unit since its inception or approximately
76% to 80% of the Limited Partners' original capital contributions.
The difference in capital accounts, and therefore the final distribution
amount, is due to the amount of tax losses passed on to each Limited Partner
early in the Partnership. Those Limited Partners receiving higher per unit
distribution amounts had received lower tax losses earlier in the Partnership.
This variance in allocated tax losses is a function of the date each Limited
Partner originally invested in the Partnership.
If you are not a California resident, the required California withholding,
if any, has been applied to your distribution. You may be eligible for a
refund of some or all of this withholding depending on your individual tax
situation. Limited Partners who have California income tax withheld during
1996 will receive a California Form 592-B in early 1997 which reports the
Partnership's tax withholding. This form should be filed with the California
Franchise Tax Board along with California Form 540NR (541 for fiduciaries).
To order copies of California tax forms or for more information regarding
California taxes, you can call the Franchise Tax Board at (000) 000-0000 or
(000) 000-0000.
As the distribution of these amounts to the Limited Partners represented the
final step in the liquidation process, the General Partner terminated the
Partnership effective December 31, 1996. As soon as practicable, the General
Partner will prepare and file the final tax return and distribute the final
tax information return on Schedule K-1 to the Limited Partners. Should you
have any questions concerning the dissolution and
liquidation of the Partnership, please feel free to contact your Financial
Advisor or call the Prudential Securities' Client Services Department at
0-000-000-0000.
Sincerely,
/s/ Xxxxxxx X. Xxxxxx
Xxxxxxx X. Xxxxxx
President
R & D Funding Corp
General Partner
