Alan Angus McDonald

LORD ABBETT AFFIIATED A- — Int/Div — Bought

Bank of the West Accounts - Yakima, WA — Interest

RENTAL PROPERTY, Selah, WA — Rent

MARUDO ASSOCIATES (1/2 INTEREST) Land Develop. — Rent

CHIAWANA ORCHARDS (1/4 int)Bent Grant, Yak & Frank Co — Rent — Bought — Farms Ltd

CHIAWANA ORCHARDS (1/4 int)Bent Grant, Yak & Frank Co — Bought — Younker

CHIAWANA INC (1/4 int) fruit warehouse, Yakima, WA — Rent — Bought — Seasons Assoc

AMERICAN EXPRESS, common stock — Int/Div

AMERIPRISE FINANCIAL, common stock — Int/Div

BOEING, INC, common stock — Int/Div

USBANCORP, common stock — Int/Div

PYPER JAFFRAY, common stock — None

P'SHIP, 1/3 int, Yakima, WA., cold storage MPM" — Rent

P'SHIP, 1/2 int, Yakima, WA, wood apple bin rentals-"M&M" — Rent

LEHMAN BROS. HOLDINGS, INC, common stock — Int/Div

BADGER POCKET VISTA RANCH, Kittitas Co., WA (2/3 interest) — Rent

GOLDENDALE WA WTR SWR REV REF — Interest

5/1/13. tax free

NUVEEN SENIOR INC FD, common stock — Int/Div

ALTRIA GRP, common stock — Int/Div

SAFECO CORP. common stock — Int/Div

COSTCO, common stock — Int/Div

ROYAL DUTCH SHELL — Int/Div

GREATER BAY BANKS, pfd stock, 9% 8/31/2006 — Interest — Redeemed — Gain

ALLIANCE BERNSTEIN, mutual fund — Int/Div

CHEVRON CORP. common stock — Int/Div

PRINCIPAL FINANCIAL GROUP common stock — Int/Div

AMGEN, common stock — None

CISCO SYS, common stock — None

CITIGROUP, common stock — Int/Div

GENERAL ELECTRIC, common stock — Int/Div

INTEL CORP. common stock — Int/Div

INTERNATIONAL BUSINESS MACHINE, common stock — Int/Div

ADC TELECOMMUNICATIONS. — None — Sale

stock

MUNDER POWER PLUS, CI-A, common stock — None

MUNDER POWER PLUS, CI-B — None

U SBANK ACCOUNT, Agency Account — Interest — Sale — Gain

U SBANK ACCOUNT, Agency Account — Sale — Gain

MEDTRONIC, common stock — Int/Div — Sale

COHEN & STEERS, common stock — Int/Div

GABELLI DIVIDEND, common stock — Int/Div

CALAMOS CONV, common stock — Int/Div

TOBACCO SETTLEMENT, Wa, 6.5% tax exempt bond — Interest

LORD ABBETT, tax-free, Nat Inc - A — Interest

MADISON CLAYMORE COVERED CALL FUND — Int/Div

ISTAR FINANCIAL. common stock — Int/Div

ELECTRONIC DATA SYSTEM CORP, com. st. — Int/Div — Sale — Gain

KAYNE ANDERSON ENERGY, common stock — Int/Div — Sale

NFJ DIVIDEND INT & PREM STAT FD, common stock — Int/Div

CALAMOS CONVERT. TXBL, SERIES T, — Int/Div

CALAMOS CONVERT. TXBL, SERIES F, fixed inc. — Int/Div

RMR REAL ESTATE FD. fixed inc — Int/Div

PIONEER TAX ADVANTAGED BAL. TR. — Int/Div

CAPITAL LEASE FUNDING — Int/Div

TAMARACK INVT. FUNDS, tax free (cash equivalent) — Interest

BRISTOL MYERS SQUIBB, common stock — None — Bought

CLAYMORE DELTA CAN. ENER.TR — Int/Div — Bought

DOVER CORP., common stock — Int/Div — Bought

TECHNOLOGY INVEST. CAP. CORP common stk — Int/Div — Bought

ROYAL BANK OF CANADA, common stk — None — Bought

RMR prf. Div. Fd,, fixed income — Int/Div — Bought

BREITBURN ENERGY PARTNER, LP — None — Bought

ENTERPRISE PRODS PARTNERS, LP — None — Bought

ENTERPRISE PRODS PARTNERS, LP — Bought

LINN ENERGY LLC — None — Bought

RENTAL PROPERTY, Condo in Shoreline, WA — Rent — Bought

IRA, DAIN RAUSCHER BROKERAGE ACCOUNT — Int/Div

Misc FNMA REMIC, collateralized obligation — Sale — Gain

Bristol Myers Squibb, common stock — Sale — Gain

Tamarack Invt Fds - cash equivalent

Exxon Mobil Corp, common stock

General Electric, common stock

Nicholas Applegate, tax fixed income bond

Flaherty & Crumrine, bond

Govt Nat' Mtg Assn, 9%, 9/15/08, coll. Obligation

Boston Scientific Corp, common stock — Sale

Nisource Inc., common stock

Chevron, common stock

Greater Bay Banks, 9%, pfd bond — Sale — Gain

Chittenden Capital 8% Pfd, bond

Crosstex Energy Lp — Sale

Markwest Energy Partners, LP

Calamos Convertible Opp & Inc Fund

Cimarex Energy Co

Gabelli Div & Inc. Fund

Technology Investment Cap. Corp

Tortoise Energy Corp.

Venzon Communications — Sale — Gain

XM Satellite Radio — Sale — Gain

Eaton Vance Enhanced Equity Inc Fund

Copano Energy

RMR F.LR.E. Fund — Sale — Gain

Advent Claymore Enhanced Growth/Income Fund

China Fund

Williams Partners — Sale

Electronic Data Sys — Sale — Gain

Fidelity Adv. Equity Value - Class A — Sale

Fidelity Adv. Mid-Cap II - Class A

Gamerica Capital - A — Sale

American Cap. Strategies, LTD — Bought

Claymore Delta Canadian — Bought

Fidelity Adv New Insight Fd, Cl A — Bought

Fidelity Adv. Technology - T — Bought

USB Capital X, 6.5% pfd bond — Bought

Breitburn Energy Partner, LP — Bought

Enterprise Prods. Partners, LP — Bought

Linn Energy LLC — Bought

Linn Energy LLC — Bought

Linn Energy LLC — Bought

STOCKHOLDER, CHIAWANA INC

OWNER, as a tenant in common, Los om BADGER PCKET ORCHARD 2 = ~~ oO

Liability — Farm Credit Services — Term Note (Chiawana Inc) Part Vii, Line 7

Liability — Farm Credit Services — Note/Debt (Chiawana Orch) Part Vii, Line 5

Reimbursement — Shareholder Option Obligation — note (Chiawana Inc) Part VII, Line 7

Reimbursement — U.S. Bank — note (Chiawana Inc) Part VII, Line 7

Reimbursement — David Newman — note (Chiawana Orch), Part VII, Line 5

Reimbursement — Shareholder Option Obligation — note (Chiawana Orch) Part VII, Line 5

Reimbursement — Capital Equipment Lease — equipment(Chiawana Orch), Part VII, Line 5

Reimbursement — David Newman — note (Chiawana Inc) Part VII, Line 7

Reimbursement — G. Meyer, Jr — note (Chiawana Inc) Part VII, Line 7

Reimbursement — U.S.Bank — operating line (Chiawana Orch) Part VII, Line 5

Reimbursement — Allen/Meyer/McDonald — notes (Chiawana Orch) Part VII, Line 5

Reimbursement — Misc. payables — revolving (Chiawana Orch) Part VII, Line 5

Reimbursement — Misc. payables — revolving (Chiawana Inc) Part VII, Line 7

VI. LIABILITIES

Item #11 listed on the 2005 annual report (Shinn (QP LLC note) was paid in full by Chiawana orchards on 9/14/2006 and has been deleted from the liabilities

section.

Item #14 on the current annual report is a new note entered into on 1/1/2006 by Chiawana Orchards with shareholder Newman purchasing his interest in Chiawana

Orchards.

Item #15 on the current annual report is a note dated 7/6/2006 to US Bank is for the purchase of bins for the warehouse, an obligation of of Chiawana Inc.

Item #16 on the current annual report is a Shareholder Option Obligation entered into on 3/31/2005 by Chiawana Inc. and shareholder McDonald. This was

overlooked in the 2005 annual report due to its closeness in name to the Shareholder Option Obligation shown on that 2005 report at Line 14 which was entered

into on 3/31/2005 by Chiawana Orch and shareholder McDonald. These are two separate obligations by two separate entities and will continue to be shown

separately until paid in full.