EXHIBIT (b)(7) General Partner's Estimated Deficit Restoration Obligation (DRO) As of 1/31/2000 (Assuming Hypothetical Asset Sale) General Partner's Estimated McNeil Negative Tax Basis 1.01% of Estimated Partnership Capital Account (b) Original LP Capital (a) DRO - ----------- ----------------------------- ----------------------- -------------- FUND IX 3,081,741 n/a 3,081,741 FUND X 2,019,707 681,760 681,760 FUND XI 2,696,292 807,707 807,707 FUND XII 5,549,705 1,166,176 1,166,176 FUND XIV 976,024 434,800 434,800 FUND XV - n/a 0 FUND XX - n/a 0 FUND XXI - n/a 0 FUND XXII - n/a 0 FUND XXIII - n/a 0 FUND XXIV - n/a 0 FUND XXV - 847,365 0 FUND XXVI 255,148 874,189 255,148 FUND XXVII - n/a 0 ------------------------------- -------------------------- ---------------------- Total 14,578,617 4,811,997 6,427,332 =============================== ========================== ====================== (a) DRO amounts for certain Funds are equal to the lesser of the tax basis capital account or 1.01% of limited partner's original invested capital. (b) Estimates above were based, in part, on limited historical tax records prepared by other accounting firms. Sufficient records did not exist such that Arthur Andersen LLP could test the accuracy of prior accountant's work. Further, these estimates were based on the McNeil Partnership's projections of 1999 and January 31, 2000 operating results and on hypothetical asset sale/partnership liquidation information provided by Stanger & Co. Arthur Andersen LLP has not audited or opined on the projected results of operations or financial information related to such hypothetical sales/liquidations.