Kenneth Miles and Michon Snow Tesar - Page 6

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               The school did not fund the comic book club.  The club                 
          participated in school sanctioned candy sales to raise funds for            
          its activities.  The club realized approximately $4,800 in                  
          profits from these sales over the years in issue.  The students             
          retained half of the profits for their own use, and petitioner              
          encouraged them to use these funds to purchase comic books.  The            
          remaining funds were retained by petitioner to support club                 
          activities such as attending comic book conventions.  Petitioner            
          was not entitled to reimbursement for any amounts he expended for           
          club purposes in excess of the funds raised by the club's candy             
          sales.                                                                      
               Petitioner ordered comic books for the club including                  
          multiple copies of certain publications that were particularly              
          popular with the students.  The comic books were delivered weekly           
          to petitioners' home, and petitioner carried some of the comic              
          books to school.  Petitioner purchased a total of approximately             
          16,000 comic books, for which he paid $7,632.74, $8,349.54, and             
          $12,675.21 during the years 1991, 1992, and 1993, respectively.             
          Petitioner did not purchase any of these comic books with                   
          proceeds from the candy sales.                                              
               Petitioner's employment with the high school terminated in             
          1995.  At that time, he removed 12,000 comic books from the                 
          school premises and stored them in his home.                                







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