<PAGE> PAGE 1
000 B000000 12/31/96
000 C000000 089558
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 Y
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 SMITH BARNEY APPRECIATION FUND INC.
001 B000000 811-1940
001 C000000 2128166670
002 A000000 388 GREENWICH STREET
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10013
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004 000000 N
005 000000 N
006 000000 N
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007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
015 A000001 PNC BANK
015 B000001 C
015 C010001 PHILADELPHIA
015 C020001 PA
015 C030001 19103
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 127
019 C000000 BARNEY0000
020 A000001 SMITH BARNEY
020 B000001 13-1912900
020 C000001 685
020 A000002 SANFORD BERSTEIN
020 B000002 N/A
020 C000002 307
020 A000003 AUTRANET
020 B000003 13-3488904
020 C000003 305
<PAGE> PAGE 2
020 A000004 MORGAN STANLEY
020 B000004 13-2655998
020 C000004 278
020 A000005 FIRST BOSTON
020 B000005 13-5659485
020 C000005 221
020 A000006 GOLDMAN SACHS
020 B000006 13-5108880
020 C000006 200
020 A000007 LEHMAN BROTHERS
020 B000007 13-2518466
020 C000007 190
020 A000008 DONALDSON, LUFKIN JERETTE
020 B000008 13-2741729
020 C000008 164
020 A000009 MERRILL LYNCH
020 B000009 13-5674085
020 C000009 156
020 A000010 BEAR STEARNS
020 B000010 13-3299429
020 C000010 153
021 000000 2659
022 A000001 GOLDMAN SACHS
022 B000001 13-5108880
022 C000001 66012186
022 D000001 33029
022 A000002 CS FIRST BOSTON
022 B000002 13-5659485
022 C000002 23869108
022 D000002 6916
022 A000003 CHASE MANHATTAN
022 B000003 N/A
022 C000003 4672775
022 D000003 0
022 A000004 GOLDMAN SACHS
022 B000004 13-5108880
022 C000004 4458245
022 D000004 3076
022 A000005 MORGAN STANLEY
022 B000005 13-2655998
022 C000005 3910962
022 D000005 13736
022 A000006 CITIBANK
022 B000006 13-5266470
022 C000006 3516590
022 D000006 0
022 A000007 SMITH BARNEY
022 B000007 13-1912900
022 C000007 382200
022 D000007 0
022 A000008 CHEMICAL SECURITIES
<PAGE> PAGE 3
022 B000008 13-5227302
022 C000008 215935
022 D000008 0
022 A000009 MERRILL LYNCH
022 B000009 13-5674085
022 C000009 24626
022 D000009 14592
022 A000010 BEAR STEARNS
022 B000010 13-3299429
022 C000010 17178
022 D000010 18902
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028 G010000 170763
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<PAGE> PAGE 4
028 H000000 130556
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030 A000000 682
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048 F020000 0.365
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<PAGE> PAGE 5
048 J020000 0.000
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<PAGE> PAGE 6
070 E010000 N
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070 F010000 N
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070 G010000 N
070 G020000 N
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070 H020000 N
070 I010000 N
070 I020000 N
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070 J020000 N
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070 K020000 N
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<PAGE> PAGE 7
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<PAGE> PAGE 8
077 A000000 Y
077 O000000 Y
080 A000000 FIDELITY BOND/ICI MUTUAL INSURANCE
080 C000000 78275
081 A000000 Y
081 B000000 114
082 A000000 N
082 B000000 0
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SIGNATURE THOMAS M. REYNOLDS
TITLE CONTROLLER
SMITH BARNEY APPRECIATION FUND INC.
F/Y/E December 31,1996
Issuer Trade Selling % of % of
Date Dealer Shares Purch. Fund Issue
Price (2)
Assets(
1)
World Color Press 1/25/96 DLJ 0.09% 1.11%
Inc. 80,000 $19.00
Planet Hollywood 4/19/96 Bear Stearns 0.001% 0.22%
2,250 $18.00
Yahoo Inc. 4/12/96 Goldman Sachs 0.0004% 1.23%
1,000 $13.00
Lucent Technologies 4/4/96 Morgan 0.13% 0.27%
Stanley 150,00 $27.00
0
Associates First 5/8/96 Goldman Sachs 0.14% 0.42%
Capital Corp. 150,00 $29.00
0
Saks Fifth Ave. 5/22/96 Goldman Sachs 0.01% 0.29%
13,000 $25.00
Open Market 5/23/96 Goldman Sachs 0.005% 0.69%
10,000 $18.00
Asia Satellite 6/13/96 Goldman Sachs 0.02% 0.27%
Communications 7,500 $25.00
Interstate Hotels 6/20/96 Merrill Lynch 0.02% 0.27%
Col. 30,000 $21.00
Donna Karan Int'l 6/28/96 Morgan 0.04% 0.47%
Stanley 15,000 $24.00
Electronic Data 7/16/96 Merrill Lynch 0.13% 0.44%
Systems 88,000 $46.63
KN Energy 8/1/96 Merrill Lynch 0.06% 1.94%
60,000 $32.25
U.S. Franchise 10/25/9 Schroder 0.001% 0.12%
Systems 6 2,700 $13.50
The Sabre Group 10/10/9 Goldman Sachs 0.01% 0.12%
Holdings Inc. 6 15,000 $27.00
Deutsche Telecom 11/18/9 Goldman Sachs 0.04% 0.01%
6 60,000 $18.86
Monterey Resources 11/15/9 Goldman Sachs 0.01% 0.30%
6 24,000 $14.50
New Holland N.V. 11/1/96 Salomon 0.08% 0.28%
Brothers 128,00 $21.50
0
