J. Clark and Mary R. Bundren - Page 5




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          84th Street property was located.  Youngblood is unrelated to               
          petitioners.                                                                
               On December 7, 1994, petitioners and Youngblood agreed to              
          exchange the 84th Street property for the 116th East Ave.                   
          property (the exchange).  The exchange was finalized on December            
          30, 1994.  The exchange was treated as essentially one                      
          transaction, but the terms were recorded as if the agreement                
          constituted a sale by petitioners of the 84th Street property for           
          $134,500 and a sale by Youngblood of the 116th East Ave. property           
          for $67,500.                                                                
               As part of the exchange, Youngblood paid the $134,500 sale             
          price for the 84th Street property, plus settlement charges,                
          taxes, and repair costs totaling $7,310.78, for a total of                  
          $141,810.78.1  These funds were used in large part to retire a              
          $126,074.95 mortgage held by the Bank of Oklahoma with respect to           
          the 84th Street property.                                                   
               With respect to their acquisition of the 116th East Ave.               
          property in the exchange, petitioners paid $67,500, plus                    
          settlement charges and taxes of $1,090.41, for a total of                   
          $68,590.41, financed in part by a $50,625 mortgage loan from the            
          Bank of Oklahoma on the 116th East Ave. property.                           




               1 Youngblood paid $55,830.78 in cash at closing and financed           
          most of the balance with funds borrowed from First Mortgage Corp.           





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