FOR AGES GAR ANT FR ERES INC NOTES TO THE FINANCIAL ST A TEMENTS Continued 5 C APIT AL AS SETS Continued Accumulated Net book value Cost amortization June 30 2006 L a n d 68250 68250 P arking 33192 33192 Buildings 940465 616136 324329 Office equipment 102250 92358 9892 Drilling equipment 6346580 4270389 2076191 Machinery and equipment 107229 85179 22050 Computer equipment 105285 86959 18326 V ehicles 1547066 899533 647533 9250317 6083746 3166571 Accumulated Net book value Cost amortization June 30 2005 L a n d 68250 68250 P arking 33192 32449 743 Buildings 811036 469950 341086 L and improvements 115681 99583 16098 Office equipment 100700 87722 12978 Drilling equipment 6092468 3804582 2287886 Machinery and equipment 82729 82729 Computer equipment 98982 77438 21544 V ehicles 1448307 738407 709900 8851345 5392860 3458485 6 BANK LOAN The company has an authorized line of credit for an amount of 5000000 bearing interest at prime rate renewable no later than October 31 of each year Any funds advanced pursuant to this line of credit are secured by accounts receivable and inventories under Section 427 of the Bank A ct On September 30 2006 the prime rate was 6 This line of credit is renewable in October 2006 Under the terms of the bank loan the company must satisfy certain restrictive covenants as to minimum financial ratios F51